NY Bond Insurer Rescue Advances
- New York Gov. Eliot Spitzer said Thursday a plan by the state's insurance regulator to bail out struggling bond insurers is making good progress amid fresh worries about the financial industry.
- Feel free to click on the link for more details - it is too sickening of an assault of "free market capitalism" for me to even waste bandwith on it.
New Subprime Bailout on the Table
- A proposal to bail out subprime mortgage borrowers who are at risk of foreclosure was floated at a Senate Banking Committee hearing Thursday.
- Senator Chris Dodd, the committee chair, said he is working to create a Home Ownership Preservation Corporation, which would purchase mortgage securities that are backed by at-risk, subprime loans from lenders and investors.
- Additionally the loans on these properties would be restructured so that borrowers could afford the new payments and remain in their homes. Borrowers could see their monthly costs drop dramatically.
- According to today's testimony, the fund might require $20 -$25 billion in seed money from taxpayers and, after that, it should self-fund. (sure it will)
What do we tell people who act responsibly? You're stupid.
We are going to have a bunch of overpriced homes occupied by people with 580 FICO scores who the government lowered their payment from $3800 a month to $740. Who will be laughing at their idiot neighbors who took out a 30 year fixed at 5.75% and are struggling to make good faith payments in the multi thousands. With 150 more FICO points.
Very fair. I'm truly sick about all of it.
What a country.
5 comments:
Keep up the good work, Mark.
Rather than offer a "ditto" or some other like-minded comment regarding your thoughts about another bailout, I linked to your post over at Slope of Hope (a perennial "Bear Cave" if there ever was one):
http://slope.disqus.com/fibschannelperfect_fxi_exit/#comment-115762
I look at Drudge Report and see 3 stories about Britney Spears going to the hospital *sigh* while our leaders sell the populace, our economy, and what we stand for down the proverbial river...
Brian
RE: Britney Spears
This type of government intervention/bailout is what our media SHOULD be focusing on. Alas, we are instead fixated on a 20-something pop star and her slide into infamy....
Mark,
Are you at all worried about your SRS position with all these bailouts?
Cheers,
BD
Blue Dog, Not really. In the short run maybe, but until the technical condition of the charts change back to bullish I still want my hedges.
Obviously it is costing this week as the things rallying the hardest are financials homebuilders and retails. But the commercial real estate issue is an economy issue, not a financial issue
Keep in mind SRS is commercial real estate - not residential.
Cool. Thanks for the tip, Mark.
-BD
Post a Comment