The White House Freezing Loans for 5-Years

[SD Realtor]

I will spare my broken record approach… this is and should be no surprise to anyone.

Look it is not about solving the right? This is about buying time for everyone. The enormity of this problem cannot just be “solved” without pretty much catastrophic consequences to the banking system, the economy, Wall Street … the list goes on. Furthermore, if you start to examine the list of “investors” who have purchased CDO’s and such, it may scare you. Maybe you are a teacher, a state employee, maybe your county or state government….

Obviously the most efficient solution is to let the market adjust on it’s own however like weaning a herion addict off the drug, it is messy and you get vomit everywhere.

****

A friend and I were having a chat yeaterday on this subject. At some point in the future… I do not know when but some day, there may just be this one HUGE receivership formed to tell EVERYONE that “you are screwed” we are the court appointed receiver and here are the crumbs left on the table. Now obviously there could be a pretty big crisis if all these investors get 100% screwed. So our theory is that Uncle Sam will go ahead and provide some backing to the payouts. 100%? No probably not, but some fraction that will at least mitigate serious liquidation events by many of the investors. The problem is that it CANNOT happen now. There is a war to fund, there are serious problems with the dollar, there are alot of things going on. However if there can be some delay, maybe 5 years down the road the war costs will be done with, perhaps housing will have already bottomed out… who knows… the key is to buy some time, let the market continue to adjust albeit in a manner that is somewhat delayed. Hey if a guy cannot afford his home now he cannot afford it in 5 years.

Anyways that was our interesting but probably full of holes theory on how it may play out…

Go ahead and stomp on it.

SD Realtor

[(former)FormerSanDiegan]

The latest …

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-12-05T170118Z_01_N05361986_RTRIDST_0_USA-SUBPRIME-PLAN-UPDATE-2.XML

[(former)FormerSanDiegan]

The latest …

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-12-05T170118Z_01_N05361986_RTRIDST_0_USA-SUBPRIME-PLAN-UPDATE-2.XML

[(former)FormerSanDiegan]

The latest …

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-12-05T170118Z_01_N05361986_RTRIDST_0_USA-SUBPRIME-PLAN-UPDATE-2.XML

[(former)FormerSanDiegan]

The latest …

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-12-05T170118Z_01_N05361986_RTRIDST_0_USA-SUBPRIME-PLAN-UPDATE-2.XML

[(former)FormerSanDiegan]

The latest …

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-12-05T170118Z_01_N05361986_RTRIDST_0_USA-SUBPRIME-PLAN-UPDATE-2.XML

[CBad]

Moral of the story: When you do something stupid, make sure it’s the stupid thing that ALL the other sheep are doing so you are part of the future bailout.

[CBad]

Moral of the story: When you do something stupid, make sure it’s the stupid thing that ALL the other sheep are doing so you are part of the future bailout.

[CBad]

Moral of the story: When you do something stupid, make sure it’s the stupid thing that ALL the other sheep are doing so you are part of the future bailout.

[CBad]

Moral of the story: When you do something stupid, make sure it’s the stupid thing that ALL the other sheep are doing so you are part of the future bailout.

[CBad]

Moral of the story: When you do something stupid, make sure it’s the stupid thing that ALL the other sheep are doing so you are part of the future bailout.

[nostradamus]

Final details of the plan are still being worked out after the American Securitization Forum, a trade group that represents large mortgage investors, presented its framework for implementing a broad rate freeze

a trade group that represents large mortgage investors

represents large mortgage investors

large mortgage investors

FB's are truly F'd if they opt for this "bailout". Anyone dumb enough to take it will find that all it does is force them to pay up for an overpriced non-asset in a declining market.

So our government is puppeteered by large mortgage investors. This is all straight out of an Ayn Rand novel… except where is the secret society all the smart and outraged people flee to?

 

[nostradamus]

Final details of the plan are still being worked out after the American Securitization Forum, a trade group that represents large mortgage investors, presented its framework for implementing a broad rate freeze

a trade group that represents large mortgage investors

represents large mortgage investors

large mortgage investors

FB's are truly F'd if they opt for this "bailout". Anyone dumb enough to take it will find that all it does is force them to pay up for an overpriced non-asset in a declining market.

So our government is puppeteered by large mortgage investors. This is all straight out of an Ayn Rand novel… except where is the secret society all the smart and outraged people flee to?

 

[nostradamus]

Final details of the plan are still being worked out after the American Securitization Forum, a trade group that represents large mortgage investors, presented its framework for implementing a broad rate freeze

a trade group that represents large mortgage investors

represents large mortgage investors

large mortgage investors

FB's are truly F'd if they opt for this "bailout". Anyone dumb enough to take it will find that all it does is force them to pay up for an overpriced non-asset in a declining market.

So our government is puppeteered by large mortgage investors. This is all straight out of an Ayn Rand novel… except where is the secret society all the smart and outraged people flee to?

 

[nostradamus]

Final details of the plan are still being worked out after the American Securitization Forum, a trade group that represents large mortgage investors, presented its framework for implementing a broad rate freeze

a trade group that represents large mortgage investors

represents large mortgage investors

large mortgage investors

FB's are truly F'd if they opt for this "bailout". Anyone dumb enough to take it will find that all it does is force them to pay up for an overpriced non-asset in a declining market.

So our government is puppeteered by large mortgage investors. This is all straight out of an Ayn Rand novel… except where is the secret society all the smart and outraged people flee to?

 

[Author]

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