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Phase 2 of the Real Bailoutâ„¢ is here
2008 Feb 27, 2:33am 29,156 views 273 comments
by HARM follow (0)
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Peter P
@
2008 Feb 27, 2:35am
Peter P
@
2008 Feb 27, 2:35am
It seems that conforming loan interest rates are going up. Perhaps the bailout is actually harmful to most homeowners/home-buyers in non-bubble areas?
This makes sense because the injection of toxic waste into a "protected" loan pool will only poison that pool. The financial market is not stupid.
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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