Phase 2 of the Real Bailoutâ„¢ is here
2008 Feb 27, 2:33am 29,290 views 273 comments
by HARM follow (0)
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Peter P
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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.
Malcolm
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2008 Feb 27, 2:45am
Definitely can happen, and from the recent links is happening. It is just being masked by packaging these loans to the federally guaranteed programs.
Malcolm
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2008 Feb 27, 2:47am
I was looking for the small cutout in the wing for the X15 tail fin to clear. Must be a different plane.
@Malcolm,
Thanks, but I cannot take credit for that --just a link to bullnotbull.com. Patrick suspended all custom graphics-uploading about 6 months ago due to spam issues.
Can I get a verification here? The emblem on B-52's hat looks like it belongs to Her Majesty's Royal Australian Navy?
That or a meter-maid from Toronto?
Phase 3? I'm predicting... June, July at the latest. My MB buddies are already telling me things are "loosening up" and that it's easier to get marginal buyers qualified. They'll have to work closely though w/ the PMI crowd so it doesn't look any more conflicted than it already is!
"Perhaps Ben is Goldfinger reincarnated?" LOL!
Let's see... tropical climate and leather bomber jacket coupled with that devil-may-care attitude? I'm thinking Tales of the Golden Monkey!
Obviously if Phase 3 happens, Phase 4 will follow. But I still have hope Phase 3 will not happen. After all, isn't their regulator (Lockard?) repeatedly on record that he wont stand for it? Now if he resigns.....Besides, if phase 3 is in the bag, why is BoA circulating that plan to bail them out with $750 billion? Its existence tells me nothings in the bag so they're exploring all options.
Maybe I'm just an idiot to think like this because on the other hand, if phase 3 isn't planned, what's the use of raising the limits?
Question: if GSE standards are loosened, it has to be only for existing loans right? I mean they can't possibly continue to provide ninja loans like it's 2005? So all it does is extract more money from current owners who will thus be given incentive to not walk away (inflation will eventually "catch them up " i.e. nominal values steady/flat for years). If that's the case sales will still stay very low right? And there's your silver lining: realtors are still screwed :-)
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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