Charles Hugh Smith reports:
Another possibility is that the Federal government, via its Fannie Mae and Freddie Mac divisions, will become a massive owner-of-last-resort of U.S. real estate. Frequent contributor Harun I. recently sent in a link to an account of Home Owners' Loan Corporation (Wikipedia), a New Deal agency established in 1933 to refinance homes to prevent foreclosure. Harun's comment:Anyone thinking about buying a house should read this article.Not once but twice.Charles Hugh Smith has a lot of interesting things to say.
"The HOLC did not prevent the Great Depression even though it was created as early as 1933." A telling point; and I would add that the agency didn't finish its mandated business until 1951: fully 18 years after it was formed to "resolve the crisis. If history is any guide at all, we can thus anticipate all these "rescue" operations currently being thrown into place lasting until 2026.
