To watch the government stupidly, wrongly and feebly attempt to prop up home prices for housing gamblers in an election year is just plain sick. Sick, sick, sick.
The latest stupidity from DC is to force the regulator to drop Fannie and Freddie's reserve requirement drastically, from 30% down to a shocking 20%, so when the fail, and yes, they will fail, the US taxpayer will be even deeper in the hole. So now Fannie and Freddie can buy up an addition $200 billion in sh*t loans this year.
We are so f*cked HP'ers. Our government is making a bad situation even worse. The taxpayer will be on the hook for trillions. Fannie and Freddie will fail. The lenders will fail. The investment banks will fail. The banks will fail. The FHLB will fail. The Fed may even fail. And nobody cares. What's on Idol?
You know what's coming. Somehow, get yourself and your family to safe shores.
Mortgage lenders to pump $200 billion into markets
WASHINGTON (Reuters) - The two largest U.S. mortgage finance companies on Wednesday won approval to pump up to $200 billion into the distressed U.S. mortgage market, the latest step in government efforts to stabilize credit markets and save the economy from recession.
Policy-makers at the Federal Reserve, regulatory agencies and the Treasury Department have let loose a flood of measures to battle rising home foreclosures and stabilize shaky markets, but some still see the need for a more direct government hand.
The Office of Federal Housing Enterprise Oversight said it was immediately easing restrictions on Fannie Mae (FNM.N) and Freddie Mac (FRE.N) to give them a bigger role in settling queasy mortgage markets. It said they should be able to buy or guarantee about $2 trillion total in mortgages this year.
"All hands are on deck to try and prevent this U.S. situation from becoming a dire crisis," said David Watt, a currency strategist with . "They're doing everything they can, making policy on the fly."