[Ozzie]

I think the gov’t has finally figured out that the biggest economic risk to the country is the housing market and in particular the bad mortgages on lenders/investors/insurers books which are causing a credit crunch being felt in all aspects of the economy. With that said you are going to see a huge gov’t bailout which is already under way. The gov’t wants everyone who stands to lose their home to re-finance so that they stay in those homes and the loans will come of the lenders books. You think the $150 billion stimulus package is the end of this? No way. I can see the gov’t offering cash out re-fi’s to subprime borrowers so that they avoid forecosure and spend th cash to stimulate the economy. Buy WMT because that’s where a ton of the money is going to be spent, and then just wait until Hillary (former WMT board member) and Bill take over the White House.

[Ozzie]

I think the gov’t has finally figured out that the biggest economic risk to the country is the housing market and in particular the bad mortgages on lenders/investors/insurers books which are causing a credit crunch being felt in all aspects of the economy. With that said you are going to see a huge gov’t bailout which is already under way. The gov’t wants everyone who stands to lose their home to re-finance so that they stay in those homes and the loans will come of the lenders books. You think the $150 billion stimulus package is the end of this? No way. I can see the gov’t offering cash out re-fi’s to subprime borrowers so that they avoid forecosure and spend th cash to stimulate the economy. Buy WMT because that’s where a ton of the money is going to be spent, and then just wait until Hillary (former WMT board member) and Bill take over the White House.

[Ozzie]

I think the gov’t has finally figured out that the biggest economic risk to the country is the housing market and in particular the bad mortgages on lenders/investors/insurers books which are causing a credit crunch being felt in all aspects of the economy. With that said you are going to see a huge gov’t bailout which is already under way. The gov’t wants everyone who stands to lose their home to re-finance so that they stay in those homes and the loans will come of the lenders books. You think the $150 billion stimulus package is the end of this? No way. I can see the gov’t offering cash out re-fi’s to subprime borrowers so that they avoid forecosure and spend th cash to stimulate the economy. Buy WMT because that’s where a ton of the money is going to be spent, and then just wait until Hillary (former WMT board member) and Bill take over the White House.

[Ozzie]

I think the gov’t has finally figured out that the biggest economic risk to the country is the housing market and in particular the bad mortgages on lenders/investors/insurers books which are causing a credit crunch being felt in all aspects of the economy. With that said you are going to see a huge gov’t bailout which is already under way. The gov’t wants everyone who stands to lose their home to re-finance so that they stay in those homes and the loans will come of the lenders books. You think the $150 billion stimulus package is the end of this? No way. I can see the gov’t offering cash out re-fi’s to subprime borrowers so that they avoid forecosure and spend th cash to stimulate the economy. Buy WMT because that’s where a ton of the money is going to be spent, and then just wait until Hillary (former WMT board member) and Bill take over the White House.

[Ozzie]

I think the gov’t has finally figured out that the biggest economic risk to the country is the housing market and in particular the bad mortgages on lenders/investors/insurers books which are causing a credit crunch being felt in all aspects of the economy. With that said you are going to see a huge gov’t bailout which is already under way. The gov’t wants everyone who stands to lose their home to re-finance so that they stay in those homes and the loans will come of the lenders books. You think the $150 billion stimulus package is the end of this? No way. I can see the gov’t offering cash out re-fi’s to subprime borrowers so that they avoid forecosure and spend th cash to stimulate the economy. Buy WMT because that’s where a ton of the money is going to be spent, and then just wait until Hillary (former WMT board member) and Bill take over the White House.

[Ozzie]

I couldn’t disagree more. If cash goes to treasuries prices rise and yields go down. Rates are coming down and will continue to fall in the 2008. The equity markets agree which is why Financials have rallied over the last couple days because lower interest rates equal future profits for lenders. The gov’t is going to bailout both the mortgage insurers (their stocks were up 30-70% today alone) and borrowers by forcing mortgage rates down and encouraging re-fi’s. They understand the greatest threat to both the US and world economy is the crumbling housing/mortgage market and they will take action especially in an election year. Don’t fight the Fed.

[Ozzie]

I couldn’t disagree more. If cash goes to treasuries prices rise and yields go down. Rates are coming down and will continue to fall in the 2008. The equity markets agree which is why Financials have rallied over the last couple days because lower interest rates equal future profits for lenders. The gov’t is going to bailout both the mortgage insurers (their stocks were up 30-70% today alone) and borrowers by forcing mortgage rates down and encouraging re-fi’s. They understand the greatest threat to both the US and world economy is the crumbling housing/mortgage market and they will take action especially in an election year. Don’t fight the Fed.

[Ozzie]

I couldn’t disagree more. If cash goes to treasuries prices rise and yields go down. Rates are coming down and will continue to fall in the 2008. The equity markets agree which is why Financials have rallied over the last couple days because lower interest rates equal future profits for lenders. The gov’t is going to bailout both the mortgage insurers (their stocks were up 30-70% today alone) and borrowers by forcing mortgage rates down and encouraging re-fi’s. They understand the greatest threat to both the US and world economy is the crumbling housing/mortgage market and they will take action especially in an election year. Don’t fight the Fed.

[Ozzie]

I couldn’t disagree more. If cash goes to treasuries prices rise and yields go down. Rates are coming down and will continue to fall in the 2008. The equity markets agree which is why Financials have rallied over the last couple days because lower interest rates equal future profits for lenders. The gov’t is going to bailout both the mortgage insurers (their stocks were up 30-70% today alone) and borrowers by forcing mortgage rates down and encouraging re-fi’s. They understand the greatest threat to both the US and world economy is the crumbling housing/mortgage market and they will take action especially in an election year. Don’t fight the Fed.

[Ozzie]

I couldn’t disagree more. If cash goes to treasuries prices rise and yields go down. Rates are coming down and will continue to fall in the 2008. The equity markets agree which is why Financials have rallied over the last couple days because lower interest rates equal future profits for lenders. The gov’t is going to bailout both the mortgage insurers (their stocks were up 30-70% today alone) and borrowers by forcing mortgage rates down and encouraging re-fi’s. They understand the greatest threat to both the US and world economy is the crumbling housing/mortgage market and they will take action especially in an election year. Don’t fight the Fed.

[Ozzie]

Jumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.

If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.

[Ozzie]

Jumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.

If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.

[Ozzie]

Jumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.

If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.

[Ozzie]

Jumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.

If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.

[Ozzie]

Jumbo’s will come down. First I believe you’ll see Fed Funds rates sub 3% in the next 60 days. Someone will figure out how to create a model for different areas to determine the risk/reward ratio, the likelihood for future property declines, and get a big institution to guarantee it.

If I was Warren Buffet, I’d be setting up direct lending banks in California, New York/NJ and maybe Mass. I’d only offer Jumbo’s to owner/occupied individuals with FICO’s over 700, 20% equity (with appraised values from appraisers that work for me), and documented assets of at least 10% of the home’s value in cash. No brokers. He could get his Geico guys to run the operation. I’d service the loans for a year and then collateralize them. Do you think there would be any buyers for Buffet CDO’s yielding double what T-Bills are selling for? He’d be printing money.

[Author]

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