Real Estate Broker

John Hussman: Can the Emergency Housing Bill Be Fixed?

Here we go again....The Fed Bailing people out. What a joke....

So here's what the future holds:

-The Fed/Bush Administration ok's FHA to refinance overinflated homes at today's 2004 pricing.

-x amount of homes are refi'd at max value (today's percieved value).

-The RE market continues to adjust downward, slowly but surely ebbing its way to 1998 levels (market equilibrium/Where it's supposed to be).

-Vwallaaa! The "$700k home" that they refinanced has predicatably adjusted downward and is now worth $650k.

-So to start: $50k drop per home (not substantial or remotely unrealistic) multiplied by the 400,000 homeowner's the plan "will benefit" = larger deficit/another failed government plan.

But, my friends it like a hard night out on the town after a good payday; it's fun in the beginning but the morning hangover reveals the truth.

Mr. Bernanke I have two questions:

1) Where do we get that giant bottle of Motrin for the bigger economic hangover to come?

2) Where do I get and send the government paperwork that ensures my business has not downside risk and i'll be bailed out?