[arete]

While the mortgage game has allowed bigger mortgages and higher appraisals, homeowners are shocked by skyrocketing insurance costs and property taxes. Indeed, as housing prices rise, property taxes are beginning to approach the same drain on cash flow as interest payments incur. Fannie and Freddie have no doubt not even considered a world where their customers will be facing higher heating prices, insurance, property taxes, interest rates, and virtually no home equity to start, along with a home bought at the top of the real estate bubble.

The Washington political establishment has always depended on the GSE's to keep the public liquid and in debt in order to keep touting an ever expanding and growing (illusionary) economy. Now with the GSE's so big and out of control, the politicians are afraid to even look at those ticking time bombs because when they do explode, no one wants to be responsible. "We never knew", they will claim.

Richard W.

[mrweb]

Top 10 contributors and amounts from the Finance/Insurance/Real Estate industries:


1
National Assn of Realtors
$4,417,113

2
Freddie Mac
$4,175,174

3
Goldman Sachs
$3,442,110

4
Citigroup Inc
$3,069,880

5
Ameriquest Capital
$2,710,000

6
AFLAC Inc
$2,522,405

7
Credit Union National Assn
$2,386,534

8
Fannie Mae
$2,370,800

9
American International Group
$2,230,407

10
Blue Cross/Blue Shield
$2,227,145

[imawit]

When's the last time you heard this ...

“too big not to fail.” ... ? Hope you're short.