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 Sat, 25 May 2013 00:03:13 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: winstongator http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15268 winstongator 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/2010/05/28/504370/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." 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.”

]]> By: HBC http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15267 HBC 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 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

]]> By: Bloix http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15262 Bloix 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. 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 http://blogs.reuters.com/felix-salmon/2010/05/28/is-there-any-reason-to-subsidize-construction-loans/comment-page-1/#comment-15259 KidDynamite 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? 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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