The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks a

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Interest rate ‘freeze’ – the real story is fraud

New proposals to ease our great mortgage meltdown keep rolling in. First the Treasury Department urged the creation of a new fund that would buy risky mortgage bonds as a tactic to hide what those bonds were really worth. (Not much.) Then the idea was to use Fannie Mae and Freddie Mac to buy the risky loans, even if it was clear that U.S. taxpayers would eventually be stuck with the bill. But that plan went south after Fannie suffered a new accounting scandal, and Freddie’s existing loan losses shot up more than expected.

Now, just unveiled Thursday, comes the “freeze,” the brainchild of Treasury Secretary Henry Paulson. It sounds good: For five years, mortgage lenders will freeze interest rates on a limited number of “teaser” subprime loans. Other homeowners facing foreclosure will be offered assistance from the Federal Housing Administration.

But unfortunately, the “freeze” is just another fraud – and like the other bailout proposals, it has nothing to do with U.S. house prices, with “working families,” keeping people in their homes or any of that nonsense
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/12/09/IN5BTNJ2V.DTL&type=printable

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Savings and loan debacle round 2

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Savings and loan debacle round 2

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Savings and loan debacle round 2

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Savings and loan debacle round 2

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Savings and loan debacle round 2

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famous quotes from the press today

“Right now I think it takes a brave soul to buy a home because there’s so much chatter about housing prices dropping,” Toll said

The government-led initiative may “reduce the severity of the decline,” said Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University in New Haven, Connecticut. Still, “if past cycles are a guide, we could have weak or declining markets for five to 10 years,” Shiller said.

It’ll be the biggest housing recession we’ve known,” said Allen Sinai, chief global economist at New York-based Decision Economics Inc. “Even if we figure this part of it out, we are not through it.”

“At best, it may stop some of the hemorrhaging of the housing market, but it doesn’t necessarily turn things around,” said Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts. “The fundamental problem with housing is oversupply

[farbet]

famous quotes from the press today

“Right now I think it takes a brave soul to buy a home because there’s so much chatter about housing prices dropping,” Toll said

The government-led initiative may “reduce the severity of the decline,” said Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University in New Haven, Connecticut. Still, “if past cycles are a guide, we could have weak or declining markets for five to 10 years,” Shiller said.

It’ll be the biggest housing recession we’ve known,” said Allen Sinai, chief global economist at New York-based Decision Economics Inc. “Even if we figure this part of it out, we are not through it.”

“At best, it may stop some of the hemorrhaging of the housing market, but it doesn’t necessarily turn things around,” said Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts. “The fundamental problem with housing is oversupply

[farbet]

famous quotes from the press today

“Right now I think it takes a brave soul to buy a home because there’s so much chatter about housing prices dropping,” Toll said

The government-led initiative may “reduce the severity of the decline,” said Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University in New Haven, Connecticut. Still, “if past cycles are a guide, we could have weak or declining markets for five to 10 years,” Shiller said.

It’ll be the biggest housing recession we’ve known,” said Allen Sinai, chief global economist at New York-based Decision Economics Inc. “Even if we figure this part of it out, we are not through it.”

“At best, it may stop some of the hemorrhaging of the housing market, but it doesn’t necessarily turn things around,” said Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts. “The fundamental problem with housing is oversupply

[farbet]

famous quotes from the press today

“Right now I think it takes a brave soul to buy a home because there’s so much chatter about housing prices dropping,” Toll said

The government-led initiative may “reduce the severity of the decline,” said Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University in New Haven, Connecticut. Still, “if past cycles are a guide, we could have weak or declining markets for five to 10 years,” Shiller said.

It’ll be the biggest housing recession we’ve known,” said Allen Sinai, chief global economist at New York-based Decision Economics Inc. “Even if we figure this part of it out, we are not through it.”

“At best, it may stop some of the hemorrhaging of the housing market, but it doesn’t necessarily turn things around,” said Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts. “The fundamental problem with housing is oversupply

[farbet]

famous quotes from the press today

“Right now I think it takes a brave soul to buy a home because there’s so much chatter about housing prices dropping,” Toll said

The government-led initiative may “reduce the severity of the decline,” said Robert Shiller, chief economist at MacroMarkets LLC and a professor at Yale University in New Haven, Connecticut. Still, “if past cycles are a guide, we could have weak or declining markets for five to 10 years,” Shiller said.

It’ll be the biggest housing recession we’ve known,” said Allen Sinai, chief global economist at New York-based Decision Economics Inc. “Even if we figure this part of it out, we are not through it.”

“At best, it may stop some of the hemorrhaging of the housing market, but it doesn’t necessarily turn things around,” said Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts. “The fundamental problem with housing is oversupply

[4plexowner]

The savings and loan bailout was petty cash compared to today’s crisis

There are at least $450 trillion dollars worth of derivatives floating around the planet right now – some portion of this paper mountain is currently shaking and bankers and politicians are running scared as a result

We are currently only hearing about the $20 trillion dollars worth of derivatives written on top of mortgage debt (MBS, CDOs, etc) – we don’t know if the fear being displayed by our ‘leaders’ is only caused by the $20 trillion or if they are reacting to something bigger that we aren’t aware of yet

All of the same financial games were played with derivatives written against auto loans and credit card debt and who knows what else – some analysts think we will start hearing about the collapse of derivatives based on auto loans and credit card debt very soon since late payments and defaults are increasing with both those categories of debt – perhaps we will have a freeze on credit card payments and a moratorium on auto repossessions in 2008?

Ultimately, this whole $450+ trillion mountain of derivatives will have to be marked down to some value that is much, much lower than today – 20 to 30 cents on the dollar seems to be the current value of an MBS – the next few years are certain to be interesting

[4plexowner]

The savings and loan bailout was petty cash compared to today’s crisis

There are at least $450 trillion dollars worth of derivatives floating around the planet right now – some portion of this paper mountain is currently shaking and bankers and politicians are running scared as a result

We are currently only hearing about the $20 trillion dollars worth of derivatives written on top of mortgage debt (MBS, CDOs, etc) – we don’t know if the fear being displayed by our ‘leaders’ is only caused by the $20 trillion or if they are reacting to something bigger that we aren’t aware of yet

All of the same financial games were played with derivatives written against auto loans and credit card debt and who knows what else – some analysts think we will start hearing about the collapse of derivatives based on auto loans and credit card debt very soon since late payments and defaults are increasing with both those categories of debt – perhaps we will have a freeze on credit card payments and a moratorium on auto repossessions in 2008?

Ultimately, this whole $450+ trillion mountain of derivatives will have to be marked down to some value that is much, much lower than today – 20 to 30 cents on the dollar seems to be the current value of an MBS – the next few years are certain to be interesting

[4plexowner]

The savings and loan bailout was petty cash compared to today’s crisis

There are at least $450 trillion dollars worth of derivatives floating around the planet right now – some portion of this paper mountain is currently shaking and bankers and politicians are running scared as a result

We are currently only hearing about the $20 trillion dollars worth of derivatives written on top of mortgage debt (MBS, CDOs, etc) – we don’t know if the fear being displayed by our ‘leaders’ is only caused by the $20 trillion or if they are reacting to something bigger that we aren’t aware of yet

All of the same financial games were played with derivatives written against auto loans and credit card debt and who knows what else – some analysts think we will start hearing about the collapse of derivatives based on auto loans and credit card debt very soon since late payments and defaults are increasing with both those categories of debt – perhaps we will have a freeze on credit card payments and a moratorium on auto repossessions in 2008?

Ultimately, this whole $450+ trillion mountain of derivatives will have to be marked down to some value that is much, much lower than today – 20 to 30 cents on the dollar seems to be the current value of an MBS – the next few years are certain to be interesting

[4plexowner]

The savings and loan bailout was petty cash compared to today’s crisis

There are at least $450 trillion dollars worth of derivatives floating around the planet right now – some portion of this paper mountain is currently shaking and bankers and politicians are running scared as a result

We are currently only hearing about the $20 trillion dollars worth of derivatives written on top of mortgage debt (MBS, CDOs, etc) – we don’t know if the fear being displayed by our ‘leaders’ is only caused by the $20 trillion or if they are reacting to something bigger that we aren’t aware of yet

All of the same financial games were played with derivatives written against auto loans and credit card debt and who knows what else – some analysts think we will start hearing about the collapse of derivatives based on auto loans and credit card debt very soon since late payments and defaults are increasing with both those categories of debt – perhaps we will have a freeze on credit card payments and a moratorium on auto repossessions in 2008?

Ultimately, this whole $450+ trillion mountain of derivatives will have to be marked down to some value that is much, much lower than today – 20 to 30 cents on the dollar seems to be the current value of an MBS – the next few years are certain to be interesting

[Author]

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