HousingPANIC Make You Puke Quote of the Day

"And when the history is written, it'll be said that we lived in a safer country, and a more hopeful world, because George Bush was President of these United States."

- Dick, and I mean Dick, Cheney, May 2008

(Bonus questions - will Cheney or Bush be indicted for war crimes by an international tribunal in the future? Will Bush pardon Cheney before leaving office? Will Obama pardon Bush or Cheney? And can Bush hit single digits before January?)

PIMCO nukes US housing - predicts 30% fall from peak and says Bush/Paulson plan "reeks of moral hazard"

Nice to see HP isn't the only one who think George Bush and Henry Paulson are corrupt incompetent tone-deaf idiots, and that the US housing market is in the early stages of a historic Japan-like crash.

I swear, it amazes me that we ended up with such incompetent leadership in DC. Bush and Paulson are the new Dukes of (Moral) Hazard.

But then again, the American people voted for these losers, and the leadership of a democracy reflects the people. 'Nuff said.

BOTTOM LINE - THIS BUSH/PAULSON HOUSING GAMBLER MORAL HAZARD BAILOUT MUST BE STOPPED AT ALL COSTS. AMERICAN BUSINESS PRACTICES WILL HAVE NO CREDIBILITY WORLDWIDE IF THIS GOES THROUGH, AND WE'LL BE NO WORSE THAN VENEZUELA OR ZIMBABWE

US home prices may bottom out in 2010, Pimco says

A senior manager at the world's biggest bond fund criticized a federal mortgage rescue plan as short-sighted and said U.S. home prices may not hit bottom until 2010.

U.S. home prices may fall as much as 30 percent from the market's peak and likely won't trough until 2009 to 2010, according to Mark Kiesel, a portfolio manager at Pacific Investment Management Co.

"The question is, do we do it over a period of two to three years, or do we do it in 10?" Kiesel said in an interview. "Japan chose 10, and that didn't work so well."

Kiesel, a longtime bear on the U.S. housing market, also questioned merits of a plan that President George W. Bush is expected to unveil on Thursday to help struggling American homeowners avoid foreclosure.

"This reeks of moral hazard," Kiesel said. "This is pure politics as we enter an election year, and it's not going to help the problem. It's going to prolong the bubble."

Kiesel said government interference in the free market may do more harm than good.

"A government bailout which alters contractual interest payments to bondholders will fuel moral hazard problems and raise mortgage rates for future borrowers and home buyers," he said. "This is not a path we want to head down in which government intervention bails out homeowners who failed to act responsibly."