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Wall Street Breakfast: Must-Know News [View article]
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The prognosticators I most trust predict that housing prices will continue to decline for YEARS, several years. Liars loans were still being made in 2007. Their teaser rates reset in 2 - 5 years. I expect foreclosures to remain high through 2010, perhaps 2012. So what are our government "leaders" doing ? It looks like they're stepping in in the 2nd inning and assuming all or most of the risk for the rest of the game.
I perceive a total lack of understanding in DC of what the problem really is. And like the comment about AIG hints at, what is the government doing giving money to companies whose books are so opaque that nobody even knows whether they are solvent or not ??
Could we at least require examination by forensic accountants of any copmpany's books that wants federal assistance ? What's really hiding in their level 2 and level 3 "assets" and liabilities.
As a taxpayer, I am outraged by the lack of sound business practices being used by government agents that supposedly represent me. They're no better than the idiots that took out and made the liars loans. We are asking the corporate recipients of our bailout money to provide no more financial information than was required for the liars loans that started this landslide. Worse, we the sheeple are GUARANTEEING these "no doc" loans.
TARP is unAmerican. Probably unConstitutional. Certainly not very bright.