patrick.net

Hmmm wonder what if any effect this will have on rates. Someone had suggested a bifurcation of rates for fed gov debt. Now you will b e able to buy an FHA mortgage for 30 years @ 5.0%, and then buy from the treasury 30 yr mort debt @ (4.0%?). Can this double as a hedge for mortgagedebtors on interest rates? Sort of a modern day edition of the old Danish system,,,,,,

errc says

Hmmm wonder what if any effect this will have on rates. Someone had suggested a bifurcation of rates for fed gov debt. Now you will b e able to buy an FHA mortgage for 30 years @ 5.0%, and then buy from the treasury 30 yr mort debt @ (4.0%?). Can this double as a hedge for mortgagedebtors on interest rates? Sort of a modern day edition of the old Danish system,,,,,,

It absolutely will double. The problem is, FHA, just isn't worth it. The advantages of FHA vs conventional 20% completely disappear in a matter of years and you easily end out ahead with 20% down.

What few people realize is that all the professional investors will pick that apart super fast, figure out whats real or not, and get out of those stocks.

Meanwhile every individual investor will be sitting on the side lines looking at all this and scratching their heads. When they're done, they'll be left holding nothing.

Should be good!

Who will be buying the new ones issued this year?

Ask chase, BofA, wells Fargo, MS, GS to buy them, repackage it as some fancy named securities (or lack of). Shovel it with other bonds, TIPs, xyz, etc... and call it an outrageously secured government backed whatever, whatever. Ask the media to put in a few good words for it. When the news hit the other side of the shores, dumb ass investors will jump on it and buy it like it's the next google stock or apple stock with 20% + guarantee annual return. So now, when the news about such wonderful overseas success hit our news outlet, more dumbasses will jump in again. Another bubble, another 7 years of speculation. Life is short, consume more.