unlawflcombatnt

The Fannie/Freddie Heist

Regarding the "fairness" issue — it's not fair at all. Why should smart renters — who correctly assessed the bubble nature of the housing market, and abstained from buying overpriced homes — also be stuck with the tab? Why should those of us who wisely stayed out of the housing market have to pay for this mess.

This is a form of wealth redistribution. It's a redistribution of wealth from the "responsible" to the "irresponsible." It's a redistribution from workers and non-speculators—to speculators, financiers, & con-artists.

There is nothing "fair" about the Fannie-Freddie bailout. And it will simply perpetuate speculative and irresponsible investment. Worse still, it will bring even more in the future, necessitating even more bailouts.

Will 'Dark Pools' Be the Capital Markets' Next Black Holes?

I'd never heard of dark pools before either. I certainly appears to violate every principle of openness and transparency.

It seems like a market analyst or investor would be trying to predict market movements and make investment decisions with insufficient information.

It sure seems like it should be illegal.

Dispelling the Financial Myths Behind the Credit Crunch

Markham is right on every point. A decline in home prices does not change the monthly payments current homebuyers are paying. If they could afford the payments, it doesn't matter whether the home has gone down in price or not.

If I'm making $300/month car payments, my ability to afford those payments doesn't decline any if I wreck the car and it becomes worthless. My ability to make the payments doesn't change any.

The same is true with a home. If you're paying $2,000/month, it doesn't affect your ability to make payments when the home goes up or down in value. It only affects your ability to re-finance out of already unaffordable payments. Which means you should never have bought the home in the 1st place.