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Pent up demand's Comments Stream Stats
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Who Killed Frannie?
Keep believing that this has been going on only the last 8 years. And it will all be better with a different "current occupant". Right.
Wake up. They have been lying to you for 80 years, not 8. And the current turmoil is the work of decades. We will not get out of this without war, because we will either fight our creditors, or be reduced to seizing resources by force that we are no longer able to pay for legitimately.
The Fed - A True Haven for Capitalism?
I'm anxiously waiting for follow up postings from all of the SA "contrarians"... who were long the GSEs due to their "strong earnings potential". Oops! That's gonna leave a mark.
Will a 7% Mortgage Threat Doom Fannie and Freddie?
Well I guess somebody has to be long these companies.
The GSEs are dead men walking for reasons mostly of their own making. The GSE shareholders and management have had how many years wetting their beaks whilst enjoying their "implicit guarantee"? Well, I guess they should have been smart enough to realize that if they ever needed to call in that market management and equity were going to be taking a beating.
I agree with the previous poster. The only sane course now is to make the de facto nationalization official. In which case there is no reason to have two entities. Freddie was created in the first place to provide some semblance of competition for Fannie.
Economists have shown that much of the subsidy that the GSEs were supposed to be providing to the mortgage market accrued to management and shareholders. The end of the GSEs would not mean the end of mortgage securitization.
Fannie & Freddie: Why Government Support is a Good Thing
Your argument reduces to "we need to get the share price up to lure in the marks." Good luck with that.
15 Notes on the Current Market Stress
"Pick-a-Pay" Defaults Deepen - Housing Tracker
But this is what you get when the originator doesn't have to hold the paper. He can tell himself that the customer will refinance in a couple years or sell the place for a profit so that he can sleep at night. Then he pockets his origination fee and moves on to the next guy.
Financial Ravings Go Mainstream
Why do you have the idea that all trends develop so rapidly that CNN is incapable of reporting them?
One could just as easily argue that if CNN is giving air time to a "bust at FNMA" it is all but inevitable and they are just softening up the public for the eventual bailout.
Housing Market Tracker - Even Mortgage Brokers Want to Stop Foreclosures
Housing Market Tracker - Even Mortgage Brokers Want to Stop Foreclosures
A Government Rental Agency to Mop Up the Foreclosures
Your little proposal does sound like a good deal for buyers, but let's look at the guy on the other side of the trade. I see a lot of risk. Perhaps your "insurance premium" won't be as cheap as you think.
A Government Rental Agency to Mop Up the Foreclosures
American society has been living beyond its means for a long time. And now we're going to learn the hard way the consequences of that. To those who propose magic wand solutions, I would only offer the words of one of my mentors about "the hard way". He always said people should just call it "the way" because there was no other path to real learning.
A Government Rental Agency to Mop Up the Foreclosures
In my book you are off the track right there. Why are expensive homes a public good? Because financial engineers on Wall Street built an edifice of levered debt on top of them?
Humpty dumpty can not be put back together again. Anybody with a pulse can see that home values can decline and furthermore that they got way out of line with current incomes. The fact that many "smart" people bet a lot of money to the contrary is not reason for a government bailout.
A Government Rental Agency to Mop Up the Foreclosures
A Government Rental Agency to Mop Up the Foreclosures
A Government Rental Agency to Mop Up the Foreclosures
I see no reason why the taxpayer should step in to catch a falling knife that business people are smart enough to avoid. So easy to be brave and bold when it's other peoples' money on the line, eh?
And you are the one in need of a history lesson. The parties who got a good deal from RTC were the vultures who came to pick over the bones. In no sense did the taxpayer make out on the deal.
If we have a few more months of high foreclosures, the banks will be forced to liquidate. An unoccupied house quickly deteriorates for a number of reasons. The banks need to take their haircuts at which point the private investment money will flow into these properties to turn them into cashflow-positive rentals.