Comments on: 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 By: winstongator Fri, 28 May 2010 20:27:18 +0000 Sales stop for Raleigh condo project 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.”

By: HBC Fri, 28 May 2010 19:18:57 +0000 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


b) is simply wishful thinking

By: Bloix Fri, 28 May 2010 15:39:29 +0000 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.

By: KidDynamite Fri, 28 May 2010 13:12:47 +0000 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?