what the bailout could possibly do

[FoamFinger1]

remember, “it’s contained”.

Even if this single bailout provides stability for now, we all realize several more institutions are in line for the chopping block.

Imagine if these bailouts succeed and stabilize the US markets, fine, good, great…

Now who is going to fix all of the markets around the world? The real estate bubble is not isolated or contained to the US. Are the gov’s of those markets going to bailout their financials with the same success?

[DWCAP]

I wonder if the real effect this will have will be to push the colapse onto another administration in 2010. The takeover was great for the end of 2008, and will help 2009 not suck as much as it is forecast to. However, the GSE’s have to sell off 10% of the portfolio in 2010, and again every year after until they are at 250B.

ASSUMING they actually follow through on that, which they wont, getting a morgage in 2010 is gonna be a bitch. Even in the best of times Fannie and Freddie were half the market, just before takeover they were the market. So they become net sellers in 2010? WHO is buying morgages then? The banks who just got burned and managed to survive only because they DIDNT have huge morgage exposuer? Foreign buyers who just lost hundreds of Billions? The American public with our lame savings rates and inflation reduced incomes? FHA, so well just trade one government sponsored morgage provider for another? (Please remember that 2010 is when alot of those option ARM loans start imploding, so it isnt like they are gonna be awsome investments.)

There isnt anyone, that is who. And so the former GSE’s either wont be able to sell or buy anything, or will rape J6Pk with new taxes/deficit spending to raise new capital. The idea is that by 2010 we will have hit bottom, will be on the rebound, and itll all be ok. But that will be as accurate a prediction as their “Subprime is contained” idea, or maybe the “rebound by Q3 2008” manure they were spreading in March.

So, we have bought 2 years of time. At the end of those 2 years one of two things will happen. The housing crisis will reignite as people can’t get financing, OR the Federal Government will loose Billions upon Billions of dollars it doesnt have.(projected DEFICIT for 2009 is over $400 Billion, before the GSE’s get a cut) Either way, the biggest thing this takeover does is make this whole problem someone elses problem.

[DWCAP]

I wonder if the real effect this will have will be to push the colapse onto another administration in 2010. The takeover was great for the end of 2008, and will help 2009 not suck as much as it is forecast to. However, the GSE’s have to sell off 10% of the portfolio in 2010, and again every year after until they are at 250B.

ASSUMING they actually follow through on that, which they wont, getting a morgage in 2010 is gonna be a bitch. Even in the best of times Fannie and Freddie were half the market, just before takeover they were the market. So they become net sellers in 2010? WHO is buying morgages then? The banks who just got burned and managed to survive only because they DIDNT have huge morgage exposuer? Foreign buyers who just lost hundreds of Billions? The American public with our lame savings rates and inflation reduced incomes? FHA, so well just trade one government sponsored morgage provider for another? (Please remember that 2010 is when alot of those option ARM loans start imploding, so it isnt like they are gonna be awsome investments.)

There isnt anyone, that is who. And so the former GSE’s either wont be able to sell or buy anything, or will rape J6Pk with new taxes/deficit spending to raise new capital. The idea is that by 2010 we will have hit bottom, will be on the rebound, and itll all be ok. But that will be as accurate a prediction as their “Subprime is contained” idea, or maybe the “rebound by Q3 2008” manure they were spreading in March.

So, we have bought 2 years of time. At the end of those 2 years one of two things will happen. The housing crisis will reignite as people can’t get financing, OR the Federal Government will loose Billions upon Billions of dollars it doesnt have.(projected DEFICIT for 2009 is over $400 Billion, before the GSE’s get a cut) Either way, the biggest thing this takeover does is make this whole problem someone elses problem.

[DWCAP]

I wonder if the real effect this will have will be to push the colapse onto another administration in 2010. The takeover was great for the end of 2008, and will help 2009 not suck as much as it is forecast to. However, the GSE’s have to sell off 10% of the portfolio in 2010, and again every year after until they are at 250B.

ASSUMING they actually follow through on that, which they wont, getting a morgage in 2010 is gonna be a bitch. Even in the best of times Fannie and Freddie were half the market, just before takeover they were the market. So they become net sellers in 2010? WHO is buying morgages then? The banks who just got burned and managed to survive only because they DIDNT have huge morgage exposuer? Foreign buyers who just lost hundreds of Billions? The American public with our lame savings rates and inflation reduced incomes? FHA, so well just trade one government sponsored morgage provider for another? (Please remember that 2010 is when alot of those option ARM loans start imploding, so it isnt like they are gonna be awsome investments.)

There isnt anyone, that is who. And so the former GSE’s either wont be able to sell or buy anything, or will rape J6Pk with new taxes/deficit spending to raise new capital. The idea is that by 2010 we will have hit bottom, will be on the rebound, and itll all be ok. But that will be as accurate a prediction as their “Subprime is contained” idea, or maybe the “rebound by Q3 2008” manure they were spreading in March.

So, we have bought 2 years of time. At the end of those 2 years one of two things will happen. The housing crisis will reignite as people can’t get financing, OR the Federal Government will loose Billions upon Billions of dollars it doesnt have.(projected DEFICIT for 2009 is over $400 Billion, before the GSE’s get a cut) Either way, the biggest thing this takeover does is make this whole problem someone elses problem.

[DWCAP]

I wonder if the real effect this will have will be to push the colapse onto another administration in 2010. The takeover was great for the end of 2008, and will help 2009 not suck as much as it is forecast to. However, the GSE’s have to sell off 10% of the portfolio in 2010, and again every year after until they are at 250B.

ASSUMING they actually follow through on that, which they wont, getting a morgage in 2010 is gonna be a bitch. Even in the best of times Fannie and Freddie were half the market, just before takeover they were the market. So they become net sellers in 2010? WHO is buying morgages then? The banks who just got burned and managed to survive only because they DIDNT have huge morgage exposuer? Foreign buyers who just lost hundreds of Billions? The American public with our lame savings rates and inflation reduced incomes? FHA, so well just trade one government sponsored morgage provider for another? (Please remember that 2010 is when alot of those option ARM loans start imploding, so it isnt like they are gonna be awsome investments.)

There isnt anyone, that is who. And so the former GSE’s either wont be able to sell or buy anything, or will rape J6Pk with new taxes/deficit spending to raise new capital. The idea is that by 2010 we will have hit bottom, will be on the rebound, and itll all be ok. But that will be as accurate a prediction as their “Subprime is contained” idea, or maybe the “rebound by Q3 2008” manure they were spreading in March.

So, we have bought 2 years of time. At the end of those 2 years one of two things will happen. The housing crisis will reignite as people can’t get financing, OR the Federal Government will loose Billions upon Billions of dollars it doesnt have.(projected DEFICIT for 2009 is over $400 Billion, before the GSE’s get a cut) Either way, the biggest thing this takeover does is make this whole problem someone elses problem.

[DWCAP]

I wonder if the real effect this will have will be to push the colapse onto another administration in 2010. The takeover was great for the end of 2008, and will help 2009 not suck as much as it is forecast to. However, the GSE’s have to sell off 10% of the portfolio in 2010, and again every year after until they are at 250B.

ASSUMING they actually follow through on that, which they wont, getting a morgage in 2010 is gonna be a bitch. Even in the best of times Fannie and Freddie were half the market, just before takeover they were the market. So they become net sellers in 2010? WHO is buying morgages then? The banks who just got burned and managed to survive only because they DIDNT have huge morgage exposuer? Foreign buyers who just lost hundreds of Billions? The American public with our lame savings rates and inflation reduced incomes? FHA, so well just trade one government sponsored morgage provider for another? (Please remember that 2010 is when alot of those option ARM loans start imploding, so it isnt like they are gonna be awsome investments.)

There isnt anyone, that is who. And so the former GSE’s either wont be able to sell or buy anything, or will rape J6Pk with new taxes/deficit spending to raise new capital. The idea is that by 2010 we will have hit bottom, will be on the rebound, and itll all be ok. But that will be as accurate a prediction as their “Subprime is contained” idea, or maybe the “rebound by Q3 2008” manure they were spreading in March.

So, we have bought 2 years of time. At the end of those 2 years one of two things will happen. The housing crisis will reignite as people can’t get financing, OR the Federal Government will loose Billions upon Billions of dollars it doesnt have.(projected DEFICIT for 2009 is over $400 Billion, before the GSE’s get a cut) Either way, the biggest thing this takeover does is make this whole problem someone elses problem.

[Arraya]

Nouriel Roubini | Sep 9, 2008

The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.

Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (“leveraged buy-out”) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).

So now Comrades Bush, Paulson and Bernanke (as originally nicknamed by Willem Buiter) have now turned the USA into the USSRA (the United Socialist State Republic of America). Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion.

This biggest bailout and nationalization in human history comes from the most fanatically and ideologically zealot free-market laissez-faire administration in US history. These are the folks who for years spewed the rhetoric of free markets and cutting down government intervention in economic affairs. But they were so fanatically ideological about free markets that they did not realize that financial and other markets without proper rules, supervision and regulation are like a jungle where greed – untempered by fear of loss or of punishment – leads to credit bubbles and asset bubbles and manias and eventual bust and panics.

http://www.rgemonitor.com/blog/roubini

[Arraya]

Nouriel Roubini | Sep 9, 2008

The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.

Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (“leveraged buy-out”) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).

So now Comrades Bush, Paulson and Bernanke (as originally nicknamed by Willem Buiter) have now turned the USA into the USSRA (the United Socialist State Republic of America). Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion.

This biggest bailout and nationalization in human history comes from the most fanatically and ideologically zealot free-market laissez-faire administration in US history. These are the folks who for years spewed the rhetoric of free markets and cutting down government intervention in economic affairs. But they were so fanatically ideological about free markets that they did not realize that financial and other markets without proper rules, supervision and regulation are like a jungle where greed – untempered by fear of loss or of punishment – leads to credit bubbles and asset bubbles and manias and eventual bust and panics.

http://www.rgemonitor.com/blog/roubini

[Arraya]

Nouriel Roubini | Sep 9, 2008

The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.

Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (“leveraged buy-out”) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).

So now Comrades Bush, Paulson and Bernanke (as originally nicknamed by Willem Buiter) have now turned the USA into the USSRA (the United Socialist State Republic of America). Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion.

This biggest bailout and nationalization in human history comes from the most fanatically and ideologically zealot free-market laissez-faire administration in US history. These are the folks who for years spewed the rhetoric of free markets and cutting down government intervention in economic affairs. But they were so fanatically ideological about free markets that they did not realize that financial and other markets without proper rules, supervision and regulation are like a jungle where greed – untempered by fear of loss or of punishment – leads to credit bubbles and asset bubbles and manias and eventual bust and panics.

http://www.rgemonitor.com/blog/roubini

[Arraya]

Nouriel Roubini | Sep 9, 2008

The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.

Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (“leveraged buy-out”) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).

So now Comrades Bush, Paulson and Bernanke (as originally nicknamed by Willem Buiter) have now turned the USA into the USSRA (the United Socialist State Republic of America). Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion.

This biggest bailout and nationalization in human history comes from the most fanatically and ideologically zealot free-market laissez-faire administration in US history. These are the folks who for years spewed the rhetoric of free markets and cutting down government intervention in economic affairs. But they were so fanatically ideological about free markets that they did not realize that financial and other markets without proper rules, supervision and regulation are like a jungle where greed – untempered by fear of loss or of punishment – leads to credit bubbles and asset bubbles and manias and eventual bust and panics.

http://www.rgemonitor.com/blog/roubini

[Arraya]

Nouriel Roubini | Sep 9, 2008

The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.

Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (“leveraged buy-out”) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).

So now Comrades Bush, Paulson and Bernanke (as originally nicknamed by Willem Buiter) have now turned the USA into the USSRA (the United Socialist State Republic of America). Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion.

This biggest bailout and nationalization in human history comes from the most fanatically and ideologically zealot free-market laissez-faire administration in US history. These are the folks who for years spewed the rhetoric of free markets and cutting down government intervention in economic affairs. But they were so fanatically ideological about free markets that they did not realize that financial and other markets without proper rules, supervision and regulation are like a jungle where greed – untempered by fear of loss or of punishment – leads to credit bubbles and asset bubbles and manias and eventual bust and panics.

http://www.rgemonitor.com/blog/roubini

[HLS]

Can a broker post today’s rates for common Pigg, i.e., 400K loan with 20% down, 750FICO+.

Is there a good site to track average low rate?
*********************
Tuesday’s best wholesale rate that I had for a strong borrower was 5.50%

$417K loan max
20% equity
720 or higher mid credit score
Full Doc
30 YR fixed (15 YR @ 5.25%)
Impound account for taxes
Owner occupied
Purchase OR REFI without any cash out.
1 point origination fee
(OR 5.75% without origination fee)
30 day lock
+ 3rd party fees
—————————–
Jumbo loans OVER $417K
20% equity
740 or above mid credit score
As above 5.75%
(or 6.125% without origination fee)
With 25% equity
5.625% (OR 6.00%)
*********************
It’s all about qualifying.
Who cares about “average rates”
It’s all about qualifying !!

Some lenders wont lock jumbo loans until the loan is underwritten.

Most people don’t get the best rate that they actually qualify for.
Doesn’t matter if it’s a Bank, CU or through a broker.

Rates subject to change at anytime.

When you shop by rate, you are asking to be fooled, and don’t understand what you are doing.

HLS

[HLS]

Can a broker post today’s rates for common Pigg, i.e., 400K loan with 20% down, 750FICO+.

Is there a good site to track average low rate?
*********************
Tuesday’s best wholesale rate that I had for a strong borrower was 5.50%

$417K loan max
20% equity
720 or higher mid credit score
Full Doc
30 YR fixed (15 YR @ 5.25%)
Impound account for taxes
Owner occupied
Purchase OR REFI without any cash out.
1 point origination fee
(OR 5.75% without origination fee)
30 day lock
+ 3rd party fees
—————————–
Jumbo loans OVER $417K
20% equity
740 or above mid credit score
As above 5.75%
(or 6.125% without origination fee)
With 25% equity
5.625% (OR 6.00%)
*********************
It’s all about qualifying.
Who cares about “average rates”
It’s all about qualifying !!

Some lenders wont lock jumbo loans until the loan is underwritten.

Most people don’t get the best rate that they actually qualify for.
Doesn’t matter if it’s a Bank, CU or through a broker.

Rates subject to change at anytime.

When you shop by rate, you are asking to be fooled, and don’t understand what you are doing.

HLS

[HLS]

Can a broker post today’s rates for common Pigg, i.e., 400K loan with 20% down, 750FICO+.

Is there a good site to track average low rate?
*********************
Tuesday’s best wholesale rate that I had for a strong borrower was 5.50%

$417K loan max
20% equity
720 or higher mid credit score
Full Doc
30 YR fixed (15 YR @ 5.25%)
Impound account for taxes
Owner occupied
Purchase OR REFI without any cash out.
1 point origination fee
(OR 5.75% without origination fee)
30 day lock
+ 3rd party fees
—————————–
Jumbo loans OVER $417K
20% equity
740 or above mid credit score
As above 5.75%
(or 6.125% without origination fee)
With 25% equity
5.625% (OR 6.00%)
*********************
It’s all about qualifying.
Who cares about “average rates”
It’s all about qualifying !!

Some lenders wont lock jumbo loans until the loan is underwritten.

Most people don’t get the best rate that they actually qualify for.
Doesn’t matter if it’s a Bank, CU or through a broker.

Rates subject to change at anytime.

When you shop by rate, you are asking to be fooled, and don’t understand what you are doing.

HLS

[HLS]

Can a broker post today’s rates for common Pigg, i.e., 400K loan with 20% down, 750FICO+.

Is there a good site to track average low rate?
*********************
Tuesday’s best wholesale rate that I had for a strong borrower was 5.50%

$417K loan max
20% equity
720 or higher mid credit score
Full Doc
30 YR fixed (15 YR @ 5.25%)
Impound account for taxes
Owner occupied
Purchase OR REFI without any cash out.
1 point origination fee
(OR 5.75% without origination fee)
30 day lock
+ 3rd party fees
—————————–
Jumbo loans OVER $417K
20% equity
740 or above mid credit score
As above 5.75%
(or 6.125% without origination fee)
With 25% equity
5.625% (OR 6.00%)
*********************
It’s all about qualifying.
Who cares about “average rates”
It’s all about qualifying !!

Some lenders wont lock jumbo loans until the loan is underwritten.

Most people don’t get the best rate that they actually qualify for.
Doesn’t matter if it’s a Bank, CU or through a broker.

Rates subject to change at anytime.

When you shop by rate, you are asking to be fooled, and don’t understand what you are doing.

HLS

[Author]

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