U.S. Clamp on Mortgage Rates Likened to Beef Price Controls
After eight years of fitful changes in economic policy, credit crises anti mini-recessions, the dollar continues to decrease in value. Credit restraint and control of wages and prices have been tried intermittently but they were destined to fail.</br></br>Without the restraining support of a reduction in the federal deficit, the political burden is too great to maintain tight credit or stringent control of prices and wages long enough to get the job done.</br></br>Once again, the Federal Reserve is carrying the full burden of restraining a booming economy. Once again, interest rates are breaking new records and the mortgage market faces a reduction in the availability of funds.</br></br>The cause of high prices, including interest rates, is not a mean Federal Reserve System that wants to spoil everyoneÛªs fun. The Federal Reserve has not been parsimonious in supplying money and credit to the economy.</br></br>Instead, it has erred by supplying money and credit far in excess of the economyÛªs capacity lo produce goods and services.