Fannie & Freddie are now backed by the US Government. Why is the 30-Year fixed rate mortgage back at 6%, and GSE debt spreads back to levels pre-Conservatorship? The Debt Rescue Bill has been tweaked and will likely become law, but it�s still a waste of $700 billion. We now have a Garbage Bin for bad debt. Backing C&D Loans at Community Banks will cost $350 billion as more than half of the $627 billion will likely be worthless by the time The Great Credit Crunch winds down. The FDIC needs an expanded role, and they are curiously absent from the regulatory standpoint. They have the lifelines to help. Meanwhile we remain on watch for the monthly close on the Dow. Below 10,625 signals a multi-year BEAR MARKET.
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7hardcandy 3 years ago
Today I was listening to a past SEC chairman, and he suggested that the government do what Buffet did, buy equity in the companies and let them deal with their toxic dept.
virginlampoil 3 years ago