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.