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Nationalization Alert!
1 posted on 03/04/2008 2:52:08 PM PST by hripka
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To: hripka

Housing gambler bailout ping


2 posted on 03/04/2008 2:58:22 PM PST by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Travis McGee; Halgr

Nationalization Alert!


3 posted on 03/04/2008 2:59:04 PM PST by nicmarlo (A vote for McRino is a false mandate for McShamnesty)
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To: hripka

Let’s invent words and put them in Bernanke’s mouth.


4 posted on 03/04/2008 3:01:28 PM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: hripka

From Bernake today:

“Lenders tell us that they are reluctant to write down principal. They say that if they were to write down the principal and house prices were to fall further, they could feel pressured to write down principal again. Moreover, were house prices instead to rise subsequently, the lender would not share in the gains. In an environment of falling house prices, however, whether a reduction in the interest rate is preferable to a principal writedown is not immediately clear. Both types of modification involve a concession of payments, are susceptible to additional pressures to write down again, and result in the same payments to the lender if the mortgage pays to maturity. The fact that most mortgages terminate before maturity either by prepayment or default may favor an interest rate reduction. However, as I have noted, when the mortgage is “under water,” a reduction in principal may increase the expected payoff by reducing the risk of default and foreclosure.”
http://globaleconomicanalysis.blogspot.com/

Mish’s site.

I’m going to borrow to the hilt, blow the cash, spend my money, ignore moral hazard and come into the 21st C.

Why oh why oh why did I think being frugal and careful and honest was a good policy!!!


5 posted on 03/04/2008 3:04:37 PM PST by OpusatFR
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To: hripka

I just shake my head as I recall the flaming hoops I had to jump through to get a CP loan from Countrywide in 1998.


6 posted on 03/04/2008 3:04:41 PM PST by shove_it (and have a nice day)
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To: hripka
Consequently, according to Bernanke, principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure. In other words, adjust the mortgage principal downward to reflect the declining home value.

BS, let them sue their real estate brokers and appraisers if they were lied to. Otherwise suck it up.

7 posted on 03/04/2008 3:04:47 PM PST by org.whodat (What's the difference between a Democrat and a republican????)
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To: hripka
California Single Family Median Home Prices

Sure prices are higher than they were four years ago and before.

The problem is all of the mortgages signed at higher prices.

9 posted on 03/04/2008 3:05:12 PM PST by hripka (There are a lot of smart people out there in FReeperLand)
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To: hripka
I say nationalize the Fed.

Oh wait ... it kinda sorta already is nationalized.

But then so are Fannie Mae and Freddie Mac.

Why are so-called sophisticated investors so easily conned?

These were the same idiots who believed that the deregulation of the energy business was a true deregulation rather than just a scam for letting middlemen gouge the consumer.

10 posted on 03/04/2008 3:05:50 PM PST by who_would_fardels_bear
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To: hripka
"I urge the Congress and the GSEs to take the steps necessary to allow more potential homebuyers access to mortgage credit at reasonable terms. "

Great, why not just declare homeownership a constitutionally protected right and give everyone a house? After all, what he's suggesting here is legislatively protecting stupidity and risk-taking.

11 posted on 03/04/2008 3:06:24 PM PST by Hoffer Rand
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To: hripka
What’s a couple of trillion more added to the national debt in a noble cause? After all, we have a compassionate “conservative” at the helm of our great nation and he doesn’t want to see his dear subjects thrown out onto the streets.
12 posted on 03/04/2008 3:06:37 PM PST by trane250
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To: hripka

Did I mention that the crisis is contained? Good.


15 posted on 03/04/2008 3:09:12 PM PST by Attention Surplus Disorder (We've checked, and all your zeroes are OK. We're still working on your ones.)
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To: hripka
I'm not convinced. Also, simply can't get past the remark about fannie and freddie being the reason the subprime bubble burst. that's oversimplification to the point of poetic license.

Maybe the writer is a little younger; there's not even a hint of "nationalization" in the air. Maybe if unemployment hits 30% it might talked about.

Hope I'm right.

17 posted on 03/04/2008 3:14:18 PM PST by the invisib1e hand (the model prescribes the required behavior. disincentives ensure compliance.)
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To: hripka
the estimated payment adjustments upon reset will result in an average monthly payment of $1,500, a 10% increase.

So why is this a crisis that I, Joe Taxpayer, should pay for, just because some people bought homes where a measly 10% increase in their house payment sends them over the cliff?!!!

26 posted on 03/04/2008 3:54:41 PM PST by AmericaUnited
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