I unfortunately was a mortgage broker in one of my past lives.
Lately I have been watching the futile attempts of the Obama Administration to put the humpty dumpty mortgage, housing and construction industries back on a growth curve which was spoiled by greed.
With Bank of America sitting on potential liabilities along with Fannie Mae and Freddie Mac in excess of $500 trillion for the mortgage morass connected with the MERS Mess, and the added recent settlements announced by the various states on the mortgage servicing robo signing legal case, the global mortgage industry is far from recovering.
Property prices in the United States and abroad continue to fall, albeit not as quickly as they have five years ago when I last covered the subject, and rightly so, being in and out of the industry gives one a clearer perspective in predicting the failures of WAMU, Countrywide, Fannie and Freddie and a few others, I believe when I write with some authority on the matter as evidenced by my track record, that the Obama Administration would do well to merge Fannie, Freddie and Bank of America.
That way BAC could wind up with five trillion in assets and shed all the bad assets in a spinnoff in a massive real estate investment trust.
They could then sell of the real estate via the trust and the stock ownership via Merrill Lynch.
You don't need to have two penny stocks with more than two trillion dollars in phony mortgages on their books. It doesn't look good on a resume, even if you are running for re-election.
If Ron Paul gets elected on the merits of this proposal alone by 100 million homeowners voting for him who have a vested interest in solving the global mortgage mess, then I would like to be appointed as one of his closest personal advisors.
Heaven forbid that America should have to borrow from the World Bank and the International Monetary Fund and resort to austerity measures. The Greeks are a perfect example of what happens when you take away the paychecks of the middle class in any country.
Until BAC and the Obama Administration recognize the merits of such a proposal, I would be inclined to short another five billion shares of BAC, Fannie Mae and Freddie Mac over the next couple months, just to rile up the Plunge Protection Team.
If you google the words, you will see what I mean.
Additional disclosure: I do not have access to the United States Stock Market but I may advise Offshore Funds in the Cayman Islands from time to time. I do not get paid for any advice I publish publicly at Seeking Alpha or any other place on the world wide web.