The Fed approves Basel III

[dan_bgblue]

Linkage (http://www.foxbusiness.com/markets/2013/07/02/fed-to-move-forward-with-basel-iii-capital-rules/?intcmp=obnetwork)

[CitizenBBN]

The article mentions a key part of it: they waived having to treat higher risk mortgages with a higher risk value and thus require more capital reserve. So now whether they hold stable or shaky mortgages they have the same capital cost. Say hello to the next housing bubble.

Certain key Congressmen and both party leaderships are utterly tied to the idea of having to subsidize home ownership. They are esp. vapor locked into the idea of getting people who may not be able to afford a home into a home ownership position no matter how bad that position may ultimately be for them.