Details are still a little sketchy but I’m assuming that the new subprime bailout plan will closely resemble California’s plan.
Previously, I listed some unintendend consequences. Quickly, those were insufficient scale to work and keeping the “plankton” out of the housing market. Those are still valid, IMO. After getting the details about Gov. [...]
Wall Street is giddy with rumors of some sort of deal pending from the Treasury with mortgage lenders regarding the freezing of subprime mortgage resets. There’s a common sentiment among free-market conservatives that when government tries to fix something, they generally make it worse. I’m not a conservative but I’ve got to go [...]
Bernanke is testifying as I type this and he just made the suggestion that the Federal Government help the mortgage crisis by guaranteeing Freddie & Fannie’s exposure to allow those GSEs to buy and package more loans. Of course, they’ll underestimate exposure to possible losses from these mortgages and the taxpayer will be left [...]
