BTW, his thesis is that rates will continue to fall as the US experiences deflation, and the dollar will rise in value vs. the Euro and many currencies (the Yen will rise vs. everyone).
The securitization of mortgages and funding of banks has effectively already been nationalized. Banks are borrowing to fund their operations from the Federal Home Loan Bank system like never before, and Fannie and Freddie are the only places to sell your conforming mortgages.
If the conforming limit is raised significantly, you won’t have much more possibility of government involvement in finance and banking for Bush’s successor, irrespective of party. We are nearly there …
