Fed monetizing Fannie and Freddie?

[JWM in SD]

I’m sorry PR, but my patience for your posts is running pretty thin right now. All of your little schemes seem to center around shifting principal to out years and other taxpayers. In my opinion, that ignores certain fundamental issues. One is pure affordability. At 10 times income in SoCal, how is that sustainable unless there is wage inflation? Second, the boomers are retiring and they are a much bigger population base than GenX and GenY combined. You are talking about taxing a smaller population even more and expecting them to pay ten times income for housing??? Unless you are advocating inter-generational loans, which was attempted in Japan and didn’t help, then I don’t how your ideas could work.

I know you claim to be playing devil’s advocate here, but the nature of your posts indicate otherwise. Good Luck, I won’t be responding to your posts anymore until you begin to acknowledge some sort of fundamental reality in them.

[JWM in SD]

I’m sorry PR, but my patience for your posts is running pretty thin right now. All of your little schemes seem to center around shifting principal to out years and other taxpayers. In my opinion, that ignores certain fundamental issues. One is pure affordability. At 10 times income in SoCal, how is that sustainable unless there is wage inflation? Second, the boomers are retiring and they are a much bigger population base than GenX and GenY combined. You are talking about taxing a smaller population even more and expecting them to pay ten times income for housing??? Unless you are advocating inter-generational loans, which was attempted in Japan and didn’t help, then I don’t how your ideas could work.

I know you claim to be playing devil’s advocate here, but the nature of your posts indicate otherwise. Good Luck, I won’t be responding to your posts anymore until you begin to acknowledge some sort of fundamental reality in them.

[4plexowner]

patientrenter – I thought I was providing some information in response to your idea about the GSEs – I thought you were actually interested in learning – now, I’m not sure what to think of you and your posts

your posts are displaying very little knowledge and even less thought – I can’t tell whether you are being intentionally dense or whether you really just don’t get it

the housing market and economy are in their current state because of free-lunch schemes from the government and you are talking about more free-lunch

maybe someday I can visit you on whatever planet you live on?

[4plexowner]

patientrenter – I thought I was providing some information in response to your idea about the GSEs – I thought you were actually interested in learning – now, I’m not sure what to think of you and your posts

your posts are displaying very little knowledge and even less thought – I can’t tell whether you are being intentionally dense or whether you really just don’t get it

the housing market and economy are in their current state because of free-lunch schemes from the government and you are talking about more free-lunch

maybe someday I can visit you on whatever planet you live on?

[sdduuuude]

I’m quite sure the “whacko” comment was mine, and I meant in the most complementary manner.

Really.

[sdduuuude]

I’m quite sure the “whacko” comment was mine, and I meant in the most complementary manner.

Really.

[4plexowner]

somebody just posted this stuff in a new thread but it is relevant here also:

S&P may downgrade $12 bln of subprime securities
Changes by rating agency could increase rates on subprime mortgages
http://www.marketwatch.com/News/Story/sp-may-downgrade-12-bln/story.aspx?guid=%7BCB3BF07B%2DBCAA%2D4F55%2DAEF5%2DF9C22E5D4570%7D

S&P finally says subprime is mostly junk
Commentary: New methodology is death knell for the troubled industry
http://www.marketwatch.com/news/story/sp-finally-says-subprime-mostly/story.aspx?guid=%7BDFBA4993-031E-4E88-8F56-5B08FD9AA07D%7D
“S&P, one of the three main credit-rating agencies that served as enablers of the subprime mortgage boom, announced Tuesday that it would lower its ratings on 612 bonds, a small portion of the mortgage-backed securities it had given its seal of approval to.

But the bigger news is that S&P isn’t going along with the charade any more. S&P said it would change its methodology for ratings hundreds of billions of dollars in residential mortgage-backed securities.

And it would review its ratings on hundreds of billions of dollars in the more complex collateralized debt obligations based on those subprime loans.

A lot of debt will be downgraded to junk status. A lot of that debt will have to be sold at fire-sale prices. A lot of pension funds and hedge funds that once thrived on the high returns they could get from investing in subprime junk will now lose a lot of money.

S&P’s announcement is a death warrant for the subprime industry. No longer will mortgage brokers be able to help buyers lie their way into a home. Fewer stressed homeowners will be able to refinance their mortgage, thus extending and exacerbating the housing bust.

“We do not foresee the poor performance abating,” S&P said. Prices will fall, and foreclosures will rise. More mortgage fraud will be uncovered as the tide goes out.”

[4plexowner]

somebody just posted this stuff in a new thread but it is relevant here also:

S&P may downgrade $12 bln of subprime securities
Changes by rating agency could increase rates on subprime mortgages
http://www.marketwatch.com/News/Story/sp-may-downgrade-12-bln/story.aspx?guid=%7BCB3BF07B%2DBCAA%2D4F55%2DAEF5%2DF9C22E5D4570%7D

S&P finally says subprime is mostly junk
Commentary: New methodology is death knell for the troubled industry
http://www.marketwatch.com/news/story/sp-finally-says-subprime-mostly/story.aspx?guid=%7BDFBA4993-031E-4E88-8F56-5B08FD9AA07D%7D
“S&P, one of the three main credit-rating agencies that served as enablers of the subprime mortgage boom, announced Tuesday that it would lower its ratings on 612 bonds, a small portion of the mortgage-backed securities it had given its seal of approval to.

But the bigger news is that S&P isn’t going along with the charade any more. S&P said it would change its methodology for ratings hundreds of billions of dollars in residential mortgage-backed securities.

And it would review its ratings on hundreds of billions of dollars in the more complex collateralized debt obligations based on those subprime loans.

A lot of debt will be downgraded to junk status. A lot of that debt will have to be sold at fire-sale prices. A lot of pension funds and hedge funds that once thrived on the high returns they could get from investing in subprime junk will now lose a lot of money.

S&P’s announcement is a death warrant for the subprime industry. No longer will mortgage brokers be able to help buyers lie their way into a home. Fewer stressed homeowners will be able to refinance their mortgage, thus extending and exacerbating the housing bust.

“We do not foresee the poor performance abating,” S&P said. Prices will fall, and foreclosures will rise. More mortgage fraud will be uncovered as the tide goes out.”

[4plexowner]

If you don’t understand money …

some people wonder why I focus so much on the fiat monetary system in this country – as the author of this article states, if you don’t understand money you can’t understand prices (or the economy)

The Commodity “Super Cycle”
http://www.321gold.com/editorials/saville/saville071007.html

“Well, someone who believes that inflation is minimal at a time when the supplies of 18 of the world’s top 20 currencies are expanding at double-digit rates does not understand inflation; and someone who doesn’t understand what’s happening to money cannot possibly have a thorough understanding of what’s happening to prices.”

[4plexowner]

If you don’t understand money …

some people wonder why I focus so much on the fiat monetary system in this country – as the author of this article states, if you don’t understand money you can’t understand prices (or the economy)

The Commodity “Super Cycle”
http://www.321gold.com/editorials/saville/saville071007.html

“Well, someone who believes that inflation is minimal at a time when the supplies of 18 of the world’s top 20 currencies are expanding at double-digit rates does not understand inflation; and someone who doesn’t understand what’s happening to money cannot possibly have a thorough understanding of what’s happening to prices.”

[sdduuuude]

I have learned much about the fiat monetary system in this country from this board, and I understand the problem, though not the solution.

That is – I am left asking the question “Now that I understand this, what do I do with the knowledge?” i.e. How can I profit from it? What do I do with the $50,000 sitting in the bank, etc. ?

The answer eludes me.
Any help ?

[sdduuuude]

I have learned much about the fiat monetary system in this country from this board, and I understand the problem, though not the solution.

That is – I am left asking the question “Now that I understand this, what do I do with the knowledge?” i.e. How can I profit from it? What do I do with the $50,000 sitting in the bank, etc. ?

The answer eludes me.
Any help ?

[drunkle]

buy real estate. it never goes down…

[drunkle]

buy real estate. it never goes down…

[4plexowner]

IMO, our best hope and highest priority is to get Ron Paul elected in 2008 – Ron Paul is the only true statesman that is running for president – the rest of the wannabe’s are just preening politicians playing the political game

Mr. Paul has already introduced legislation to do away with the Federal Reserve

~

Second priority is education – knowledge is power

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” — Henry Ford

“The few who understand the system, will either be so interested from it’s profits or so dependant on it’s favors, that there will be no opposition from that class.” — Rothschild Brothers of London, 1863

“Give me control of a nation’s money and I care not who makes it’s laws” — Mayer Amschel Bauer Rothschild

“A great industrial nation is controlled by it’s system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” –President Woodrow Wilson

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance”. — James Madison

~

debate against the Fed in 1913:

“These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency…” — Mr. Crozier of Cincinnati, before Senate Banking and
Currency Committee – 1913

“The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency… I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency.” — Henry Cabot Lodge Sr., 1913

[the US dollar has lost almost 97% of its value since Mr. Lodge voiced his concern about inflation]

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