Whew! Relief at last!

Paulson says markets emerging from crunch: report…

“I do believe that the worst is likely to be behind us” -Hanky Paulson, May 6, 2008

[Yahoo]

And wait! There’s more!

Fannie to Aid Underwater Loans

“The National Association of Home Builders and the National Association of Realtors praised the program”

[WSJ]

Well hell, that’s good enough for me!

Once again, the US government has ridden to the rescue of the markets and saved the day!

… what’s that? Louder. What?

Hold on a sec, ladies and gentlemen, there’s someone here hollering in the background about moral hazard and the law of unintended consequences (when did Congreff paff that?):

Now here’s the unintended consequence of this bill:

There’s still 16 homes on the street that are underwater!

Assuming 50% of the remaining 16 homes have little or no money down, that means 8 additional homeowners jumping on the delinquency bandwagon! Suddenly mortgage holders now have to eat an additional $3.2 million to bring the value down to the current pricing.

[BMIT]

Well, there’s always some alterna-media blogger who’s gotta ruin the party.

What’s that? If some people want their bail-out, everyone else will want one, too?

So just who do you think you are, my dad?

[Hat tip]


Federal Reserve: Transferring wealth from society to the creators of currency since 1913.

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