Nov 11, 2010

Ned Riley says the cold housing market is a big problem for the economy

One of the biggest problems we've got is that we can flood the system with money but the banks don't turn around and lend it where it's needed. The housing industry is still on its back. If you try to get a refinancing of a mortgage, it takes you four to six weeks minimum just to get them to look through your applications.

The banks are still parsimonious in handing out any money toward the housing market. A purist, somebody that has high credit ratings and everything else, can't get an equity line of credit for about two months. So, Bernanke's nice to give us all this money, but the banks have pressure, big pressure, because the lending offices aren't giving the money away.

~Ned Riley, Riley Asset Management, CNBC's "The Kudlow Report", November 4th, 2010

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