Comments on: Is there any reason to subsidize construction loans? http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: winstongator http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15268 Fri, 28 May 2010 20:27:18 +0000 http://blogs.reuters.com/felix-salmon/?p=4044#comment-15268 Sales stop for Raleigh condo project

http://www.newsobserver.com/2010/05/28/5 04370/hue-condo-sales-stop-no-units.html

“Hue, the multicolor building that is the largest condo project ever attempted in downtown Raleigh, closed its sales office without ever selling a unit.”

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By: HBC http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15267 Fri, 28 May 2010 19:18:57 +0000 http://blogs.reuters.com/felix-salmon/?p=4044#comment-15267 It strikes me you’re approaching this as though a) the banks didn’t have spectacular amounts of money to lend; and b) the banks actually wanted or had any real incentive to make loans which are good for the economy, not just their own arcane sub-economy.

Let me help you out here:

a) is more true than ever before

whereas

b) is simply wishful thinking

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By: Bloix http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15262 Fri, 28 May 2010 15:39:29 +0000 http://blogs.reuters.com/felix-salmon/?p=4044#comment-15262 If the problem is that regulators are unreasonably “pushing lenders … to limit their real estate exposure without much regard to the demand in the specific market,” then the solution should be to tell the regulators to do a better job of regulating. The solution should not be to guarantee profits to bankers who make bad loans.

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By: KidDynamite http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15259 Fri, 28 May 2010 13:12:47 +0000 http://blogs.reuters.com/felix-salmon/?p=4044#comment-15259 there’s one huge flaw here: “Treasury should be able to tell the difference, and banks need to as well”

that’s an assumption which has pretty much already been proven false. It was kinda Greenspan’s theory: banks won’t make bad loans. But they did. And the Fed couldn’t tell a bubble – so why would we expect the Treasury to?

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