bail out math, WTF?

[PadreBrian]

Also, 400,000 is really really low. There’s 400k worth of bad alt-a’s in SD alone.

[LA_Renter]

This proposed bailout is DOA. Ain’t happening.

[LA_Renter]

This proposed bailout is DOA. Ain’t happening.

[LA_Renter]

This proposed bailout is DOA. Ain’t happening.

[LA_Renter]

This proposed bailout is DOA. Ain’t happening.

[LA_Renter]

This proposed bailout is DOA. Ain’t happening.

[jrock]

>>>Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

Hmmm….so your saying 20% of these mortgages are heading to default. What do you think commercial paper with a 20% default rate is fetching on the open market today? Probably a lot less than 25 cents on the dollar. Probably more 5-10 cents on the dollar. Does anyone have the data on this? THanks

[jrock]

>>>Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

Hmmm….so your saying 20% of these mortgages are heading to default. What do you think commercial paper with a 20% default rate is fetching on the open market today? Probably a lot less than 25 cents on the dollar. Probably more 5-10 cents on the dollar. Does anyone have the data on this? THanks

[jrock]

>>>Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

Hmmm….so your saying 20% of these mortgages are heading to default. What do you think commercial paper with a 20% default rate is fetching on the open market today? Probably a lot less than 25 cents on the dollar. Probably more 5-10 cents on the dollar. Does anyone have the data on this? THanks

[jrock]

>>>Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

Hmmm….so your saying 20% of these mortgages are heading to default. What do you think commercial paper with a 20% default rate is fetching on the open market today? Probably a lot less than 25 cents on the dollar. Probably more 5-10 cents on the dollar. Does anyone have the data on this? THanks

[jrock]

>>>Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

Hmmm….so your saying 20% of these mortgages are heading to default. What do you think commercial paper with a 20% default rate is fetching on the open market today? Probably a lot less than 25 cents on the dollar. Probably more 5-10 cents on the dollar. Does anyone have the data on this? THanks

[brose]

An unmentioned part of this new proposal is the huge, new beauracracy that will be created to regulate Fannie/Freddie and to “monitor” this program. You’re talking at a minimum of 100 new hires (easily could go up to 500 by the time we’re done), in DC of about $100k each on average (benefits for a federal employee will run about 27% of pay). Plus new computers, supplies, etc., you’re easily topping over $11-15M per year, and that’s a minimum. I think a more accurate figure is about $75M for a new department budget. Per year. But thats less than 1% of the budget, so by DC standards, that’s efficiency.

[brose]

An unmentioned part of this new proposal is the huge, new beauracracy that will be created to regulate Fannie/Freddie and to “monitor” this program. You’re talking at a minimum of 100 new hires (easily could go up to 500 by the time we’re done), in DC of about $100k each on average (benefits for a federal employee will run about 27% of pay). Plus new computers, supplies, etc., you’re easily topping over $11-15M per year, and that’s a minimum. I think a more accurate figure is about $75M for a new department budget. Per year. But thats less than 1% of the budget, so by DC standards, that’s efficiency.

[brose]

An unmentioned part of this new proposal is the huge, new beauracracy that will be created to regulate Fannie/Freddie and to “monitor” this program. You’re talking at a minimum of 100 new hires (easily could go up to 500 by the time we’re done), in DC of about $100k each on average (benefits for a federal employee will run about 27% of pay). Plus new computers, supplies, etc., you’re easily topping over $11-15M per year, and that’s a minimum. I think a more accurate figure is about $75M for a new department budget. Per year. But thats less than 1% of the budget, so by DC standards, that’s efficiency.

[brose]

An unmentioned part of this new proposal is the huge, new beauracracy that will be created to regulate Fannie/Freddie and to “monitor” this program. You’re talking at a minimum of 100 new hires (easily could go up to 500 by the time we’re done), in DC of about $100k each on average (benefits for a federal employee will run about 27% of pay). Plus new computers, supplies, etc., you’re easily topping over $11-15M per year, and that’s a minimum. I think a more accurate figure is about $75M for a new department budget. Per year. But thats less than 1% of the budget, so by DC standards, that’s efficiency.

[Author]

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