I think you all worry too much. If some one wants to
pay 4K for a house that collects 2k rents. Let them
go for it. If because of this new legislation same
house mortgage becomes 2k, I would buy it. It’s all
about PE and nothing else. At least this is the way I look at it!
After all set and done this will be another fail attempt
to bail out housing. Been there done that, super SIV,
bond insurance bail out, …….
Furthermore who the hell is going to buy this crap from
Fannie and Freddie. As far as I can tell they already in
deep with altA and non performing assets. Just take a
look at their stock.
As far as benefiting from this situation goes. I used to
invest in a fund that was following 10 yr yield. I made
some money out of it when fed was raising interest rate,
but nothing to write home about it. I think in long run
treasury would fall and interest on 10yr will have to
increase to attract investors. Especially with new budget
which came out today. If this what you are looking
for take a look at RYJAX. I probably put some money in it
after next rate cut.
