this doesn’t seem like it’s going to save the housing market. more likely, it’s to save the agency bond market. and the cush jobs of the connected gse execs.
underwriting standards have gone up so the gse’s still can’t buy crap mortgages. the 625 cap sounds impressive, but with strong underwriting, who can afford that? buying and backing mortgages up to 15% above median will help the banks who wrote and cannot sell mbs, but 15% won’t cover the some 30% loss already taken. and selling the stuff will cause write downs that were previously avoided.
the hit to taxpayers to save the bond market, the money markets, the ib’s and cb’s should make certain folks happy. forcing the middle and lower income people share in the burden of bailing out the upper echelons.
personally, this bailout has made my decision for president for me; obama. at least his tax plan puts the burden of the bailouts back on the shoulders of where it belongs.
