Will President Bush be able to cover the market with his umbrella?
George W. Bush is expected to propose multiple initiatives to bail out troubled homeowners in a statement today. The president will outline reforms that will help keep subprime and struggling borrowers in their homes -- and keep Fannie Mae in business.No one really knows how he will pull this off. Least of all, him. But you can bet your last yuan the proposal will be audacious and its funding will come at your expense… capital for refinanced, bailout-rate loans doesn’t grow on trees. But it does get printed in dollars. Looks like Bill Gross is going to get what he wanted.
Not to miss an opportunity on the campaign trail, Barack Obama proposed yesterday that "unlicensed, unregulated, fly-by-night mortgage brokers who are hoodwinking low-income borrowers" ought to be fined and the proceeds should be used to bail out borrowers on the verge of foreclosure.Where were these jackasses when the market was in full swing and house prices were going up? No doubt giving speeches about how vibrant the American economy was… and lauding our ability to deliver the American Dream to anyone who wanted it. Probably buying property themselves somewhere, too.
2 comments:
I just think its important we remember the difference between predatory lenders and subprime lenders- there is a huge difference.
I don't think any of these bail out plans are fair to fiscally responsible families who are ultimately going to foot the bill.
I wrote my thoughts on subprime and would appreciate your feedback.
http://councilofnicea.blogspot.com/2007/08/busting-predatory-lending-myth.html
By the way...34 dollar price target for Starbucks? Seems a bit high to me! ;)
hi Ryan,
Thank you for your comments.
I think it would be difficult to tell the difference between predatory lender and trouble lenders.
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