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Phase 2 of the Real Bailoutâ„¢ is here


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2008 Feb 27, 2:33am   26,879 views  273 comments

by HARM   ➕follow (0)   💰tip   ignore  

Fannie Mae, Freddie Mac Portfolio Caps Will Be Lifted (Update2)

Phase 1 : Congress raised the GSE (Fannie and Freddie) conforming loan limit from $417,000 to $729,000.

Phase 2 : Congress instructs the OFHEO to lift portfolio caps on the GSEs (which were placed there because of GSE "accounting irregularities" and concerns about the GSE's size/share of market).

Next up...

Phase 3 : Eliminating all qualifying “standards” on the type of mortagages the GSEs can buy: allowing no-docs/NINJAs, neg-ams, I/Os, option ARMs and assorted hybrids.

Phase 4 : Congress making implicit GSE guarantees explicit, and taxpayers assuming/liquidating the portfolios of the soon-to-be bankrupt GSEs (RTC, part II)

Can’t happen, you say? Never say “never” where a bought-off "Socialize all losses" Con-gress and whining, clueless, bleating "why me?" sheeple are concerned.

HARM

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161   FormerAptBroker   2008 Feb 27, 12:59pm  

Randy H Says:

> Some folks always did hate me though,
> for some odd reason.

Most of us are glad to have you back...

162   Randy H   2008 Feb 27, 1:00pm  

I lurk often. I'm just much busier these days. I'm countercyclical, so there's a real whopper of a recession coming, lol...

163   Malcolm   2008 Feb 27, 1:02pm  

Randy, would you go so far to use the D word, or is it still just an r?

164   Randy H   2008 Feb 27, 1:23pm  

Just an "r". But a nasty one is my guess. Perhaps lasting more than a couple years. "D" is a strong word.

165   Peter P   2008 Feb 27, 1:23pm  

Bah! You know better!

Ha! See, I got Randy to come back. :)

166   Malcolm   2008 Feb 27, 1:26pm  

Yes, I've been accused of using it too loosely but I have genuine concerns about how severe this is going to get. Some of these proposals are starting to sound like there is such a pent up panic that the solutions almost seem like an overthrow.

167   Peter P   2008 Feb 27, 1:26pm  

No. I argued that most people would lose money in gold.

That's fine. In a healthy speculative market, most people must lose money.

168   Malcolm   2008 Feb 27, 1:28pm  

BTW, I like hearing from you as well, I'm still a fan of your threads.

169   Peter P   2008 Feb 27, 1:28pm  

Should we plan for the March Blog Party? Perhaps we should plan it with traffic in mind this time?

170   Malcolm   2008 Feb 27, 1:31pm  

To me, the government becoming the national bank resembles something from 60s and 70s Argentina. That's my level of concern.

We are headed for the same patterns of devaluation, buying votes in elections years, and then the required seizures from some groups to satisfy other groups. Ron Paul was our last hope and I'm not normally the alarmist.

171   Randy H   2008 Feb 27, 1:32pm  

Should we plan for the March Blog Party?

I'm in. I'll be earlier this time.

172   Peter P   2008 Feb 27, 1:34pm  

Is there a place that is both ferry-accessible and train-accessible?

173   Peter P   2008 Feb 27, 1:36pm  

Ron Paul was our last hope and I’m not normally the alarmist.

Ron Paul is a respectable statesman. Yes, it is rare to have "respectable" and the name of a politician in the same sentence.

Too bad he is not a very good shepherd of sheeple.

174   Randy H   2008 Feb 27, 1:37pm  

I don't think all is lost ... yet. We've got a couple years left to turn this all around. Ron Paul had mostly the right ideas, but at the wrong time. He's too old, and too early. The "capitulation" as it were hasn't come yet. That's happening now.

I sort of like the Strauss & Howe generational/war theory, which holds that we're due for a true turning in societal attitude towards "big" things. I think that turning is in process. If it comes soon enough or is effective is anyone's guess.

What I'm looking for now is someone with leadership qualities, regardless of whether they are saying all the right political garbage. My hero is Teddy Roosevelt.

175   Randy H   2008 Feb 27, 1:39pm  

Is there a place that is both ferry-accessible and train-accessible?

Not really. The ferry building is Muni accessible from the train station.

Don't sweat the ferry. There aren't that many of us in the North Bay.

176   Peter P   2008 Feb 27, 1:41pm  

Of course we are at a major turn. I repeat, Pluto's entry into Capricorn and the nation's run-up to its Pluto return is *very* significant.

My hero is Teddy Roosevelt.

Yes, I like *this* Roosevelt too.

177   Malcolm   2008 Feb 27, 1:42pm  

Why?

178   Peter P   2008 Feb 27, 1:43pm  

Why what?

179   Malcolm   2008 Feb 27, 1:44pm  

Teddy

180   Peter P   2008 Feb 27, 1:45pm  

For one, he is not *that* Roosevelt. :)

181   justme   2008 Feb 27, 1:47pm  

Malcolm,

I have a technical degree and I can agree with your original statement. I don't think it is offensive. You clearly did not say it as a put-down.

I can probably think of at least half-a-dozen stock purchase slam-dunks I could have participated in, if only I had a firm grasp of the day-to-day emotion of the herd.

I ahve grasped that what matters is what the herd thinks and how the herd thinks.
I just can't seem to get to the next level.

Buying Google at 100 and riding it to 700 would be a prime example of a good call.

182   Malcolm   2008 Feb 27, 1:48pm  

Well, I like the parks, and he did build up the Navy. Apart from that I don't know that much about him.

183   Malcolm   2008 Feb 27, 1:49pm  

I appreciate that, thanks.

184   Malcolm   2008 Feb 27, 1:52pm  

Believe me, I envy what you guys can do.

185   Randy H   2008 Feb 27, 1:57pm  

Teddy was someone who defined himself. He was essentially a pure leader.

I actually like FDR too. I think a lot of contemporary FDR bashing is a lot of revisionism. He was quite the leader too. We were lucky to have a benevolent guy at the helm, as was England, during that conflagration. It could have turned out much much differently.

186   Peter P   2008 Feb 27, 1:58pm  

I am a software "engineer" and I do express contempt towards technical people from time to time. But I also express contempt towards humanity.

187   Peter P   2008 Feb 27, 1:58pm  

I actually like FDR too. I think a lot of contemporary FDR bashing is a lot of revisionism. He was quite the leader too. We were lucky to have a benevolent guy at the helm, as was England, during that conflagration. It could have turned out much much differently.

Okay, I should shut up immediately.

188   Peter P   2008 Feb 27, 2:02pm  

It is just scary reading the 10 planks of the Communist Manifesto and matching that with US history of the period.

189   Malcolm   2008 Feb 27, 2:02pm  

Randy H Says:
February 27th, 2008 at 9:57 pm
"I actually like FDR too. I think a lot of contemporary FDR bashing is a lot of revisionism."

I agree, he faced two of the most challenging threats to this country in a single century. Hindsight is 20/20 but a real leader makes the best of what he has to work with at the time.

190   Malcolm   2008 Feb 27, 2:05pm  

Peter P Says:
February 27th, 2008 at 9:58 pm
"I am a software “engineer” and I do express contempt towards technical people from time to time. But I also express contempt towards humanity."

I'm the same way, I dislike everyone equally for different reasons. It's my take on diversity.

191   SP   2008 Feb 27, 2:06pm  

FuzzyMath Says:
True, I’ve heard that before.

I am not surprised, since I expect you have even used that line yourself. :-)

While in general it is true that...

Whatever, dude. Your point is that "buyers on the sidelines" might want to get scared about rising interest rates. Sounds like the usual farfetched troll-talk to me, but I guess realtwhores gotta eat too...

192   Peter P   2008 Feb 27, 2:07pm  

I’m the same way, I dislike everyone equally for different reasons. It’s my take on diversity.

Misanthropists are Equal Opportunity Haterz. :)

193   Randy H   2008 Feb 27, 2:08pm  

Okay, I should shut up immediately.

It is just scary reading the 10 planks of the Communist Manifesto and matching that with US history of the period.

Which is why he should be held up as a great leader. Someone weak of moral character would have made away with that opportunity, as did Stalin.

No need to shut up though, lol.

194   Malcolm   2008 Feb 27, 2:08pm  

Peter P Says:
February 27th, 2008 at 10:02 pm
"It is just scary reading the 10 planks of the Communist Manifesto and matching that with US history of the period."

Ok, now my turn. Not my creation, I stole it but I think it is funny.

"Do you ever look at the current state of affairs, pull out the Book of Revelations, and start checking things off?"

195   Randy H   2008 Feb 27, 2:10pm  

“Do you ever look at the current state of affairs, pull out the Book of Revelations, and start checking things off?”

I do that, but with the Hitchhiker's Guide to the Galaxy.

196   Malcolm   2008 Feb 27, 2:12pm  

I need to read that.

197   Peter P   2008 Feb 27, 2:15pm  

FDR might have been a hero but the irrefutable fact is that the trampled upon the very concept of property rights.

I agree that hindsight is 20/20. Yes, hindsight reveals that he "had no better options."

198   Peter P   2008 Feb 27, 2:17pm  

But the 10 planks absolutely do not fit the present US policies.

199   SP   2008 Feb 27, 2:18pm  

Malcolm Says:
I do admit it is radical, but what a fun concept to be an innovator/early adopter for. I think it looks awesome too.

Man, you would have loved this thing they used to sell back in the 90s, called the Corbin Sparrow, built in Gilroy. Radical to look at, completely plug-in, absolutely a hoot to drive. They even had a prototype for a 2nd generation that looked nicer, but they filed for bankruptcy a few years ago.

I heard someone was trying to revive the company, not sure what happened.

200   Malcolm   2008 Feb 27, 2:19pm  

What I'd like to know is what it seemed like when the Depression started. I know they went into the same denial, I've actually learned that from reading some of the links. Growing up, I often heard the stories about how miserable it was. People actually were starving. I don't know if our modern society will have a repeat of that or if it will be a Depression on paper or like Randy says just a big R. To me, for it to meet the definition of a Depression A) it has to happen to me and B) there needs to be long bread lines and real misery.

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