The guardian. [volume] (Boston, Mass.) 1901-1960, 1950-11-11
BUNGLING BUREAUcRATS

Perhaps the most stupendous hoax fosed on the
American public has just forth from Washington
the form of Regulation X, the verbal hodgepodge
governing credit for real estate loans
Without doubt this is the swiftes kick ever meed out
anywhere It either makes the real estate lobbyists look like
group of sitting fools the speed and severity with which
dumped into the laps of the taxpayers might make
suspect that there something phony about the whole deal
Perhaps these real estate lobbyists and big apartment
house welcome these credit curbs don't they pave
the way for return the big bonus system Of renting
apartments? Why else would the government try to knock
out the home buying and rent paying public with one
devastating blow before they had chance to fight back?
One of the most pitifu things about the whole deal
that nobody not top financial and real estate experts
really understand the Regulation in all its aspects amca
TONS clauses and subuntves Every person who reads the
Regulation published locally by the Federal Reserve
Bank has his Interpretation of just what certain clauses
mean No in the government has forth clarity
any of these vague and indefinite items.
What the results of this law will be nobody knows and
only time will tell They say that the Regulation designed
to reduce home building from 100000 units in 1850 to
100000 units in 1851 We have ideas what the
results will be.
Veterans will suffer building will be cut to all time
low The housing shortage certainly has rot yet been
aleviaed This restriction will throw back to the
housing shortage that has existed since 1943 and has just
recently shown signs of being With this housing
shortage will bonus apartment selling and black
market dealing in the building trades and its supplers
This regulation will throw thousands Of laborers out of
work The government wants these workers TO go into
defense industries Have they forgotten about two million
unemployed at present?
Banks will suffer because they will find difficulty in
placing mortgages
Independent real estate men will suffer as they will have
difficulty in finding buyers who PUNK down such huge
down payments
he of 40
4 But most of all the little fellow will suffer more than
anybody else The people with money will still be able to
buy when and how they please However the fellow in the
middle and low income brackets kiss goodbye to any
hopes he had of owning his own home.
One of the dangerous things that can happen to our
economy the growth of black market in second mortgages
that will go unrecorded Exorbant interest rates will be
charged Many buyers will lose their homes their invest
ments and then not be able to find apartments in which to
live The holders of second mortgages will lose out for thew
will have to law after having engaged in an
illegal practice
John Public is the fellow who will pay the freight for
the stupidity of our BUNGL1NG BUREAUcRATs. Some Of
the high saared theory boys got together without any
decided that his is what the country needs They admit
that they themselves have clear picture Just what this
regulation will bring The Federal Reserve Board admitted
that some of these credit restrictions viii need reviewing
after we how they going" This in itself is an
indication of ultimate failure for these credit cubs
We are engaged in all out battle to build up
our deenses Let ask what American industry and
business have been doing since the end Of World War II
They certainly haven't been sitting still Haven't we
progressed far enough that strike happy medium
between defense production sRa normal living Has anybody