Well as anticipated the government made the next play in the greatest ponzie scheme ever perpetrated on taxpayers by tossing another trillion on the old campfire.
The next question is how low will mortgage rates go. Note that this not only enables more refrinancing, helps increase buying power, but it also lowers the bar for distressed homeowners who are in the midst of loan remods.
In short. This totally sucks.
It will not stop the depreciation cycle…. Yet to think this will not delay things more is unrealistic.
Like I said, we are in a schizophrenic market. Defaults and foreclosures at an all time high. Mortgage rates at low. Government just throwing all caution to the wind. No moral hazard at all.
