RockBottom

Bush Housing Law: Cheap Compared to the Alternatives

While we know foreclosures are still growing, I look for signs of a decline in the rate of growth. Here is an excerpt from a report on Massachusetts by The Warren Group who publishes housing data on New England:
"While foreclosures have increased year-over-year, the number of foreclosures in June were 19.5 percent lower than May 2008 when 1,405 deeds were recorded.

Meanwhile, petitions to foreclose -- the first step in the process – fell sharply during the month of June. Lenders filed 350 petitions to foreclose in June, an 84.8 percent decline from 2,308 a year ago, and 10.3 percent lower than May when 390 were filed. Year-to-date petitions increased a slight 1.4 percent to 13,076 from 12,899 in 2007." Only one data point but worth noting.

Fannie & Freddie Are Here to Stay

Agree with much of your commentary. Can you explain why you believe there is only an "outside chance" that Freddie's sale of new stock would dilute the value of current investor's stock holdings? I have my thinking on this aspect but would like to hear yours.