Effect of the Mega Bailout on home prices

[waitingpatiently]

I think that buyers are waking up to paying for an over priced box, I mean house. A house is only worth what someone is willing to pay for it. I have no theory, nor experience, just going on a gut feeling. You maybe be right…only time will tell.

[patientrenter]

Kev,

Thanks for calling New FNMA for your home purchase needs. You want to buy that $1.2 million house? What’s standing in your way? Downpayment? No problem, we have this new no-downpayment plan, the Paulson Put Plan. Next issue. Payments too high? No problem, we have a new low early payment plan, the Bernanke No Depression Ever Again Plan. We can layer them together for you.

What’s holding you back? If house prices go up, you win. If house prices go down, you don’t lose.

Of course house prices will be higher than they would otherwise be with this bailout plan and all the control it gives Barney Frank and Chris Dodd and Chuck Schumer and others. You already knew that.

[patientrenter]

Kev,

Thanks for calling New FNMA for your home purchase needs. You want to buy that $1.2 million house? What’s standing in your way? Downpayment? No problem, we have this new no-downpayment plan, the Paulson Put Plan. Next issue. Payments too high? No problem, we have a new low early payment plan, the Bernanke No Depression Ever Again Plan. We can layer them together for you.

What’s holding you back? If house prices go up, you win. If house prices go down, you don’t lose.

Of course house prices will be higher than they would otherwise be with this bailout plan and all the control it gives Barney Frank and Chris Dodd and Chuck Schumer and others. You already knew that.

[patientrenter]

Kev,

Thanks for calling New FNMA for your home purchase needs. You want to buy that $1.2 million house? What’s standing in your way? Downpayment? No problem, we have this new no-downpayment plan, the Paulson Put Plan. Next issue. Payments too high? No problem, we have a new low early payment plan, the Bernanke No Depression Ever Again Plan. We can layer them together for you.

What’s holding you back? If house prices go up, you win. If house prices go down, you don’t lose.

Of course house prices will be higher than they would otherwise be with this bailout plan and all the control it gives Barney Frank and Chris Dodd and Chuck Schumer and others. You already knew that.

[patientrenter]

Kev,

Thanks for calling New FNMA for your home purchase needs. You want to buy that $1.2 million house? What’s standing in your way? Downpayment? No problem, we have this new no-downpayment plan, the Paulson Put Plan. Next issue. Payments too high? No problem, we have a new low early payment plan, the Bernanke No Depression Ever Again Plan. We can layer them together for you.

What’s holding you back? If house prices go up, you win. If house prices go down, you don’t lose.

Of course house prices will be higher than they would otherwise be with this bailout plan and all the control it gives Barney Frank and Chris Dodd and Chuck Schumer and others. You already knew that.

[patientrenter]

Kev,

Thanks for calling New FNMA for your home purchase needs. You want to buy that $1.2 million house? What’s standing in your way? Downpayment? No problem, we have this new no-downpayment plan, the Paulson Put Plan. Next issue. Payments too high? No problem, we have a new low early payment plan, the Bernanke No Depression Ever Again Plan. We can layer them together for you.

What’s holding you back? If house prices go up, you win. If house prices go down, you don’t lose.

Of course house prices will be higher than they would otherwise be with this bailout plan and all the control it gives Barney Frank and Chris Dodd and Chuck Schumer and others. You already knew that.

[nostradamus]

[quote=Omega Point][quote]I moved 90% of my cash and assets overseas to a small private bank that was the safest on the planet I could find.[/quote]

Without revealing too much, can you give me a clue where, like language spoken and hemisphere? I could probably guess from there. Also, is you cash in dollars or another currency?[/quote]

I recall that chief running bear brought a suitcase of cash over to switzerland. No?

[nostradamus]

[quote=Omega Point][quote]I moved 90% of my cash and assets overseas to a small private bank that was the safest on the planet I could find.[/quote]

Without revealing too much, can you give me a clue where, like language spoken and hemisphere? I could probably guess from there. Also, is you cash in dollars or another currency?[/quote]

I recall that chief running bear brought a suitcase of cash over to switzerland. No?

[nostradamus]

[quote=Omega Point][quote]I moved 90% of my cash and assets overseas to a small private bank that was the safest on the planet I could find.[/quote]

Without revealing too much, can you give me a clue where, like language spoken and hemisphere? I could probably guess from there. Also, is you cash in dollars or another currency?[/quote]

I recall that chief running bear brought a suitcase of cash over to switzerland. No?

[nostradamus]

[quote=Omega Point][quote]I moved 90% of my cash and assets overseas to a small private bank that was the safest on the planet I could find.[/quote]

Without revealing too much, can you give me a clue where, like language spoken and hemisphere? I could probably guess from there. Also, is you cash in dollars or another currency?[/quote]

I recall that chief running bear brought a suitcase of cash over to switzerland. No?

[nostradamus]

[quote=Omega Point][quote]I moved 90% of my cash and assets overseas to a small private bank that was the safest on the planet I could find.[/quote]

Without revealing too much, can you give me a clue where, like language spoken and hemisphere? I could probably guess from there. Also, is you cash in dollars or another currency?[/quote]

I recall that chief running bear brought a suitcase of cash over to switzerland. No?

[peterb]

If the govt ends up owning all these mortgages that have unsustainable service levels, seems like one of three things have to happen to avoid defaults.

1) Lower the loan amount.
2) Lower the interest rates.
3) Combination of 1 and 2.

If you think through these scenarios, you can see that this will not stop homes from coming down in price.

[peterb]

If the govt ends up owning all these mortgages that have unsustainable service levels, seems like one of three things have to happen to avoid defaults.

1) Lower the loan amount.
2) Lower the interest rates.
3) Combination of 1 and 2.

If you think through these scenarios, you can see that this will not stop homes from coming down in price.

[peterb]

If the govt ends up owning all these mortgages that have unsustainable service levels, seems like one of three things have to happen to avoid defaults.

1) Lower the loan amount.
2) Lower the interest rates.
3) Combination of 1 and 2.

If you think through these scenarios, you can see that this will not stop homes from coming down in price.

[peterb]

If the govt ends up owning all these mortgages that have unsustainable service levels, seems like one of three things have to happen to avoid defaults.

1) Lower the loan amount.
2) Lower the interest rates.
3) Combination of 1 and 2.

If you think through these scenarios, you can see that this will not stop homes from coming down in price.

[Author]

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