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  • June 2, 2009 at 9:15 PM #15805
    wannabe2077
    Participant

    I want to know who wants to buy mortgage bonds at 5% with 30 year maturity.

    It looks to me for real estate transactions in this country that there needs to be a buyer of mortgage bond. Very few banks hold the mortgage in their portfolio.

    5% 30 year for an asset from which people can walk away does not seem too attractive to me. Maybe at 8% I would be willing to risk my money

    Given this logic won’t home prices fall further ?

    June 2, 2009 at 9:44 PM #409366
    DWCAP
    Participant

    No, cause the only real game in town now is the federal government through either:
    A) Fannie
    B) Freddie
    C) FHA

    They dont care about their return on investment, it isnt their investment (it is the taxpayers). They care about being re-elected and generating the necessary campaign donations to be re-elected. Both come from proping up the morgage market with taxpayer money, and dont come from getting a real, balanced return (when considering the crazy times we are in).

    Without the GSE bailout prices would have fallen apart as new lending dried up.

    June 2, 2009 at 9:44 PM #409604
    DWCAP
    Participant

    No, cause the only real game in town now is the federal government through either:
    A) Fannie
    B) Freddie
    C) FHA

    They dont care about their return on investment, it isnt their investment (it is the taxpayers). They care about being re-elected and generating the necessary campaign donations to be re-elected. Both come from proping up the morgage market with taxpayer money, and dont come from getting a real, balanced return (when considering the crazy times we are in).

    Without the GSE bailout prices would have fallen apart as new lending dried up.

    June 2, 2009 at 9:44 PM #409852
    DWCAP
    Participant

    No, cause the only real game in town now is the federal government through either:
    A) Fannie
    B) Freddie
    C) FHA

    They dont care about their return on investment, it isnt their investment (it is the taxpayers). They care about being re-elected and generating the necessary campaign donations to be re-elected. Both come from proping up the morgage market with taxpayer money, and dont come from getting a real, balanced return (when considering the crazy times we are in).

    Without the GSE bailout prices would have fallen apart as new lending dried up.

    June 2, 2009 at 9:44 PM #409913
    DWCAP
    Participant

    No, cause the only real game in town now is the federal government through either:
    A) Fannie
    B) Freddie
    C) FHA

    They dont care about their return on investment, it isnt their investment (it is the taxpayers). They care about being re-elected and generating the necessary campaign donations to be re-elected. Both come from proping up the morgage market with taxpayer money, and dont come from getting a real, balanced return (when considering the crazy times we are in).

    Without the GSE bailout prices would have fallen apart as new lending dried up.

    June 2, 2009 at 9:44 PM #410063
    DWCAP
    Participant

    No, cause the only real game in town now is the federal government through either:
    A) Fannie
    B) Freddie
    C) FHA

    They dont care about their return on investment, it isnt their investment (it is the taxpayers). They care about being re-elected and generating the necessary campaign donations to be re-elected. Both come from proping up the morgage market with taxpayer money, and dont come from getting a real, balanced return (when considering the crazy times we are in).

    Without the GSE bailout prices would have fallen apart as new lending dried up.

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