A white paper (via @carney) sent from Ben Bernanke to the chairs of the Senate and House committees of banking and financial services and released today is not just a subtle nudge at Congress to do something to address lingering weakness in the housing industry.
For the generally tight-lipped Federal Reserve, this sounds a lot like a call to action.
In the release, the Fed suggests that the government find a way to convert a significant segment of the stock of real estate owned properties (REOs)—essentially, properties held by banks or other institutions after foreclosure—into rentals. While it refrains from making specific policy recommendations, it emphasizes the importance of doing something to help bear the burden of reviving the housing industry.
Read more: http://www.businessi…1#ixzz1iaPkAF5R