Gov’t to target 4.5% for mortgages

[KIBU]

I wonder if the 4.5% mortgage will have an income cap or other limitations/conditions (like when you sell, you share the profits).

Some suggestions for Paulson to set conditions:

1. You get 4.5% only if you also buy a brand new Ford/GM/Chrysler or a nice hummer.

2. You get 4.5% if you buy 5000 dollars of toxic securities and keep it until you are 90 years old.

3. You get 4.5% only if you assassinate HLS and stop his gloom and doom radio show.

Decision to buy depends on how long you can wait. I believe long term housing will go much further down and stays there for a while.

[davelj]

[quote=davelj]If the Treasury can issue enough 30-year paper at 3% and turn around and collect 4.5%, that’s a positive spread of 1.5%. [/quote]

Allow me to reply to my own quote…

So you want to know who’s going to be dumb enough to take on 30-year paper at 3% do you? Answer: China and Japan.

Yup, Treasury’s going to go them with this plan and their first reaction’s going to be: “30 years at 3%? Go fuck yourself.” Then they’ll have a moment of clarity and realize that if they DON’T do this, they’re fucked even worse. So, yeah, they’ll eventually take a hit on the value of that debt – but they’ll avoid an even bigger hit to their economies that’s inevitable if the US slides into depression. So, net/net China and Japan will realize that they’re better off buying that crappy paper from us and taking it in the cornhole a few years down the road as opposed to taking it even deeper in the cornhole all drawn out from 2009-2011. Yup, Japan and China are going to subsidize a big part of this stinkin’ mess. Just as it should be.

[davelj]

[quote=davelj]If the Treasury can issue enough 30-year paper at 3% and turn around and collect 4.5%, that’s a positive spread of 1.5%. [/quote]

Allow me to reply to my own quote…

So you want to know who’s going to be dumb enough to take on 30-year paper at 3% do you? Answer: China and Japan.

Yup, Treasury’s going to go them with this plan and their first reaction’s going to be: “30 years at 3%? Go fuck yourself.” Then they’ll have a moment of clarity and realize that if they DON’T do this, they’re fucked even worse. So, yeah, they’ll eventually take a hit on the value of that debt – but they’ll avoid an even bigger hit to their economies that’s inevitable if the US slides into depression. So, net/net China and Japan will realize that they’re better off buying that crappy paper from us and taking it in the cornhole a few years down the road as opposed to taking it even deeper in the cornhole all drawn out from 2009-2011. Yup, Japan and China are going to subsidize a big part of this stinkin’ mess. Just as it should be.

[davelj]

[quote=davelj]If the Treasury can issue enough 30-year paper at 3% and turn around and collect 4.5%, that’s a positive spread of 1.5%. [/quote]

Allow me to reply to my own quote…

So you want to know who’s going to be dumb enough to take on 30-year paper at 3% do you? Answer: China and Japan.

Yup, Treasury’s going to go them with this plan and their first reaction’s going to be: “30 years at 3%? Go fuck yourself.” Then they’ll have a moment of clarity and realize that if they DON’T do this, they’re fucked even worse. So, yeah, they’ll eventually take a hit on the value of that debt – but they’ll avoid an even bigger hit to their economies that’s inevitable if the US slides into depression. So, net/net China and Japan will realize that they’re better off buying that crappy paper from us and taking it in the cornhole a few years down the road as opposed to taking it even deeper in the cornhole all drawn out from 2009-2011. Yup, Japan and China are going to subsidize a big part of this stinkin’ mess. Just as it should be.

[davelj]

[quote=davelj]If the Treasury can issue enough 30-year paper at 3% and turn around and collect 4.5%, that’s a positive spread of 1.5%. [/quote]

Allow me to reply to my own quote…

So you want to know who’s going to be dumb enough to take on 30-year paper at 3% do you? Answer: China and Japan.

Yup, Treasury’s going to go them with this plan and their first reaction’s going to be: “30 years at 3%? Go fuck yourself.” Then they’ll have a moment of clarity and realize that if they DON’T do this, they’re fucked even worse. So, yeah, they’ll eventually take a hit on the value of that debt – but they’ll avoid an even bigger hit to their economies that’s inevitable if the US slides into depression. So, net/net China and Japan will realize that they’re better off buying that crappy paper from us and taking it in the cornhole a few years down the road as opposed to taking it even deeper in the cornhole all drawn out from 2009-2011. Yup, Japan and China are going to subsidize a big part of this stinkin’ mess. Just as it should be.

[davelj]

[quote=davelj]If the Treasury can issue enough 30-year paper at 3% and turn around and collect 4.5%, that’s a positive spread of 1.5%. [/quote]

Allow me to reply to my own quote…

So you want to know who’s going to be dumb enough to take on 30-year paper at 3% do you? Answer: China and Japan.

Yup, Treasury’s going to go them with this plan and their first reaction’s going to be: “30 years at 3%? Go fuck yourself.” Then they’ll have a moment of clarity and realize that if they DON’T do this, they’re fucked even worse. So, yeah, they’ll eventually take a hit on the value of that debt – but they’ll avoid an even bigger hit to their economies that’s inevitable if the US slides into depression. So, net/net China and Japan will realize that they’re better off buying that crappy paper from us and taking it in the cornhole a few years down the road as opposed to taking it even deeper in the cornhole all drawn out from 2009-2011. Yup, Japan and China are going to subsidize a big part of this stinkin’ mess. Just as it should be.

[mike92104]

When are the rates supposed to head down that low?

[mike92104]

When are the rates supposed to head down that low?

[mike92104]

When are the rates supposed to head down that low?

[mike92104]

When are the rates supposed to head down that low?

[mike92104]

When are the rates supposed to head down that low?

[DWCAP]

Maybe my comment was taken out of context. Rereading it I agree it seems that I am complaining some. I am not. Housing prices are easily at the best prices it has been in years and years.
Add in in historically low interst rates and now is a the first time in more than half a decade that buying a house isnt a terrible idea.

I personally was refering to the huge bailout our government is undertaking in our names. I and your children will be the ones paying for these bailouts, and it will hurt. All to avoid a huge recession which was avoidable had good governance been instituted years ago.
“our” was more those who are responsible not needing to be bought off. “Our” was more related to sound financial planning being rewarded rather than communal bribes being accepted. I ment that we need to take our pain and accept that the financial “planning” we are going is jeperdizing this countries future and that it isnt worth being able to buy a house at reasonable prices with unheard of rates.

But then you can finally buy a house that isnt a financial bomb. That makes up for everything.

[DWCAP]

Maybe my comment was taken out of context. Rereading it I agree it seems that I am complaining some. I am not. Housing prices are easily at the best prices it has been in years and years.
Add in in historically low interst rates and now is a the first time in more than half a decade that buying a house isnt a terrible idea.

I personally was refering to the huge bailout our government is undertaking in our names. I and your children will be the ones paying for these bailouts, and it will hurt. All to avoid a huge recession which was avoidable had good governance been instituted years ago.
“our” was more those who are responsible not needing to be bought off. “Our” was more related to sound financial planning being rewarded rather than communal bribes being accepted. I ment that we need to take our pain and accept that the financial “planning” we are going is jeperdizing this countries future and that it isnt worth being able to buy a house at reasonable prices with unheard of rates.

But then you can finally buy a house that isnt a financial bomb. That makes up for everything.

[DWCAP]

Maybe my comment was taken out of context. Rereading it I agree it seems that I am complaining some. I am not. Housing prices are easily at the best prices it has been in years and years.
Add in in historically low interst rates and now is a the first time in more than half a decade that buying a house isnt a terrible idea.

I personally was refering to the huge bailout our government is undertaking in our names. I and your children will be the ones paying for these bailouts, and it will hurt. All to avoid a huge recession which was avoidable had good governance been instituted years ago.
“our” was more those who are responsible not needing to be bought off. “Our” was more related to sound financial planning being rewarded rather than communal bribes being accepted. I ment that we need to take our pain and accept that the financial “planning” we are going is jeperdizing this countries future and that it isnt worth being able to buy a house at reasonable prices with unheard of rates.

But then you can finally buy a house that isnt a financial bomb. That makes up for everything.

[DWCAP]

Maybe my comment was taken out of context. Rereading it I agree it seems that I am complaining some. I am not. Housing prices are easily at the best prices it has been in years and years.
Add in in historically low interst rates and now is a the first time in more than half a decade that buying a house isnt a terrible idea.

I personally was refering to the huge bailout our government is undertaking in our names. I and your children will be the ones paying for these bailouts, and it will hurt. All to avoid a huge recession which was avoidable had good governance been instituted years ago.
“our” was more those who are responsible not needing to be bought off. “Our” was more related to sound financial planning being rewarded rather than communal bribes being accepted. I ment that we need to take our pain and accept that the financial “planning” we are going is jeperdizing this countries future and that it isnt worth being able to buy a house at reasonable prices with unheard of rates.

But then you can finally buy a house that isnt a financial bomb. That makes up for everything.

[Author]

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