It’s weird reading it, though. He writes as though Fannie/Freddie were never taken over.
As for mortgages, what he’s describing is simply a free market, where the value of assets and liabilities are set based on what someone’s willing to pay for them. Without government interference, that’s how the market works.
Since house values and bond prices tend to move in unison this arrangement reduces the danger of householders equity falling into negative territory.
QUESTION....should the value of a property fall, can the owner buy the bonds at the current market value of the property?... Conversely, should the value of the property rise, will a payoff require the total value of the bonds?
This is confusing...simply because I do not trust Soros.
He obviously didn't get the memo ... ACORN would never put up with this.
Housing prices must fall to the level that they would have been absent the bubble caused by all of the inappropriate borrowing. The inflated prices of two years ago make no sense unless the market is pumped up artificially. This is the painful reality. For once, the GSEs are doing the right thing.
Regarding mortgage bonds, this is going on here in the U.S. already.
Our church in New Mexico financed their construction this way.
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