The Federal Reserve is trying to put more money into the economy by lowering the interest rates it charges banks. It appears to be working, but Congress and the General Assembly seem determined to create a hostile environment for credit markets, which could undermine the effectiveness of the rate cuts. Remember when Japan has zero percent nominal interest rates for a while and nobody wanted to borrow?
High-minded legislators have forced people into bad credit ratings and missed payments with their payday lending ban. Now they want to keep people from buying their own homes with a foreclosure moratorium and other bad ideas promoted by Durham’s own Center for Responsible Lending.
The Center has received $15 million from hedge fund manager John Paulson. Coincidentally, the policy proposals from CRL, “could help the Paulson funds’ bearish mortgage bets,” according to the Wall Street Journal. Naturally, though, the Center says none of his $15 million donation will go to lobbying [it just frees up $15 million from elsewhere in the budget to lobby].
