Chris1

Fannie, Freddie Bailout To Wipe Out Equity Holders?

All the talk for GSE blood is self-interested or foolish. Why should the clowns in government who are at least if not more so guilty of fraud, failure and waste via policy mandates get to swipe the equity over a panic and circumstance they themselves have created?

Who is really the Enron in the story? GSE dupe shareholders or the government that talks confidence up and down the street with agendas? The shareholders deserved a hit but 100% while the government who drove the free lunch failure loans gets to point the finger and cut the shareholder down?

A new level of hypocrisy has been reached. Good luck privatizing the other 75 years of accumulated socialists failures through public offerings and "joint ventures".

Bill Gross: Talk of Rate Hikes is 'Comical'

Of course by keeping money cheap it help create the other monkey on our back; commodity inflation and a weak dollar.

The problem with Keynesian cycles is that they are long. We can't let housing truly correct without ending the banking system as it exists so the only solution is inflation. If you drive rents higher it would create a floor on RE property.

Trouble right now is predicting a bottom with the huge inventory that sort out quickly enough. I've tried a short sale with FNM, about a six month process. Auctions are often a scam as well, there is a bottom offer from the loan holder and it looks like there are too many incentives to grow more inventories. Where is the next generation of home buyers and why would they accept the commonly accepted level of current real estate? It will only happen when rents become much less attractive than owning.

'Pickens Plan' Comes in the Nick of Time

It's typical energy "crisis" bonehead planning, similar to the Carter efforts in the 70's.

The reason energy isn't fairly priced is the level of government ownership worldwide. In particular oil. It could go for $5 or as of today $125, all kinds of complicated reasons for the range but at many levels wind power and many other "green fantasy" solutions are wiped out. So it's malinvestment on a vast and ultimately taxpayer level.

So what is the plan really? To lock up a fantasy high price and cost structure that sounds good to the leftist moonbats but will stick a generation with government and crony interests force feeding their wisdom on us instead of letting markets and individual interests decide. If they hadn't blocked oil production and other resources it wouldn't be this bad. Peak oil is myth supported only by the levels of extreme supply restrictions, third world confusion etc.

Government makes the crisis and then grabs for power to "solve" the problem. One small irony of course is that wind turbines will kill far more wild life than oil ever has. They are bird killing machines on a vast scale. That's how socialism works; good for special interests like Pickens and the cabal of "alternative energy" subside eaters but bad in most other objective ways. There is no objectivity in a socialist state of course.

Offshore Drilling Isn't the Answer - Supply and Demand Is

I'm short too but I'm disappointed that so many others are as well.

There is some sense in the article but drilling or even planning drilling would place huge downward pressure on expectations. It's simply the eco-extreme culture that doesn't care about market forces at the root that are the problem. Bush was 100% right on this point early on in the admin, it doesn't have to make him popular but he was correct.