Paulson says markets emerging from crunch: report…
“I do believe that the worst is likely to be behind us” -Hanky Paulson, May 6, 2008
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”
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.
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?
Federal Reserve: Transferring wealth from society to the creators of currency since 1913.