Throughout the debate about the deficits and debt, you've probably heard a certain metaphor: One that compares the nation
to a household. Well, that metaphor bothers one of the nation's leading economists, Robert Shiller of Yale University.
A government watchdog released a report this morning that scrutinizes the pay of senior staffers at Freddie Mac and Fannie Mae. The report is from the inspector general of the Federal Housing Finance Agency, which oversees Fannie and Freddie.
Hedge funds and private-equity funds are buying up hundreds of foreclosed homes at a time, turning them into rentals, crowding out first-time home buyers looking for bargains.
Some cities with high foreclosure rates actually have housing shortages now, not a glut of foreclosed houses on the market. President Obama's mortgage-relief plan has helped, but another factor is hedge funds investing in houses to rent out.
Things are looking up in the housing market. People are starting to buy houses again. Mortgage rates are at an all-time low and there's lots of inventory. Or is there?
Some analysts believe home buyers' willingness to take out mortgages might be running ahead of banks' willingness to lend to them. But there are likely other factors at play.
