Tired of Waiting Posted February 11, 2011 Share Posted February 11, 2011 (edited) From the FT: US government signals retreat from the housing market. Google this, with quotes, and click on the link: "White House seeks wind-down of Fannie and Freddie" . Edited February 11, 2011 by Tired of Waiting Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 11, 2011 Share Posted February 11, 2011 (edited) US politics is so unlike european politics. Mainstream republicans - pork barrel social deficit spending on corrupt projects helping corporate interests mostly owned by the Bush family. Mainstream democrats (post Clinton) - pragmatic, fiscally conservative, socially concerned. I'm a conservative in european terms but I am much closer to Obama-democrat politics than US republicans. Obama knows that you do not serve the poor by building up national debt. As far as I know he despised Gordon Brown. The reason that the US was able to maintain a higher deficit than the UK was simply that they have a less top heavy demographic pyramid, ergo they have greater capacity to pay it off, this is why they maintained stimulus for longer than we did, this is nothing at all to do with Ed 'the thug' Balls' contention. Edited February 11, 2011 by Si1 Quote Link to comment Share on other sites More sharing options...
long time lurking Posted February 11, 2011 Share Posted February 11, 2011 Sounds like the cost of borowing is going to go up Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted February 11, 2011 Share Posted February 11, 2011 US politics is so unlike european politics. Mainstream republicans - pork barrel social deficit spending on corrupt projects helping corporate interests mostly owned by the Bush family. Mainstream democrats (post Clinton) - pragmatic, fiscally conservative, socially concerned. I'm a conservative in european terms but I am much closer to Obama-democrat politics than US republicans. Obama knows that you do not serve the poor by building up national debt. As far as I know he despised Gordon Brown. The reason that the US was able to maintain a higher deficit than the UK was simply that they have a less top heavy demographic pyramid, ergo they have greater capacity to pay it off, this is why they maintained stimulus for longer than we did, this is nothing at all to do with Ed 'the thug' Balls' contention. Is this the same Obama who is increasing the deficit and debt at record rates? The only people in the US who are actually advocating proper spending cuts are the 'Tea Party' crowd and unfortunately most of them are mad as hatters on issues other than the economy. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 11, 2011 Author Share Posted February 11, 2011 US politics is so unlike european politics. Mainstream republicans - pork barrel social deficit spending on corrupt projects helping corporate interests mostly owned by the Bush family. Mainstream democrats (post Clinton) - pragmatic, fiscally conservative, socially concerned. I'm a conservative in european terms but I am much closer to Obama-democrat politics than US republicans. Obama knows that you do not serve the poor by building up national debt. As far as I know he despised Gordon Brown. The reason that the US was able to maintain a higher deficit than the UK was simply that they have a less top heavy demographic pyramid, ergo they have greater capacity to pay it off, this is why they maintained stimulus for longer than we did, this is nothing at all to do with Ed 'the thug' Balls' contention. Yes, politicly, their "centre of gravity" is much more to the right. I have lived there for a few years, and I much prefer the Democrats as well - after Clinton: fiscally responsible, and anti-protectionist (just). Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 11, 2011 Author Share Posted February 11, 2011 Sounds like the cost of borowing is going to go up I think so too. Well, end of federal gov. guarantee = higher risk = higher spread above base rate? Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 11, 2011 Share Posted February 11, 2011 Is this the same Obama who is increasing the deficit and debt at record rates? inherited from Bush, but more sustainable than ours for the reasons I cited. Also still lower than the UK's deficit % under Brown, AFAIK. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted February 11, 2011 Share Posted February 11, 2011 So they want to wind down 2 of the institutions which currently are 99% of the housing market along with the FHA? Quote Link to comment Share on other sites More sharing options...
singlemalt Posted February 11, 2011 Share Posted February 11, 2011 There was a piece on American public radio about this yesterday. There was no general consensus as to how the government will achieve this. Quote Link to comment Share on other sites More sharing options...
leicestersq Posted February 11, 2011 Share Posted February 11, 2011 Sounds like the cost of borowing is going to go up It may actually reduce the cost of borrowing. Without the massive moral hazard that is the too big to fails with tacit guarantees of its bonds from the US government, you may well find that lending is done to a far higher standard of underwriting. If that provides greater security for lenders, then that can of itself drive down interest rates. The more trust there is, the lower interest rates can be. Quote Link to comment Share on other sites More sharing options...
leicestersq Posted February 11, 2011 Share Posted February 11, 2011 So they want to wind down 2 of the institutions which currently are 99% of the housing market along with the FHA? Let's hope this news isnt a wind up. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 11, 2011 Author Share Posted February 11, 2011 There was a piece on American public radio about this yesterday. There was no general consensus as to how the government will achieve this. I miss NPR. Are you in America now? Which state? Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted February 11, 2011 Share Posted February 11, 2011 I miss NPR. Are you in America now? Which state? Use the intertubes :- http://www.npr.org/blogs/money/ Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 11, 2011 Share Posted February 11, 2011 White House's unwritten mortgage memo: Act now http://www.reuters.com/article/2011/02/11/usa-housing-consumer-idUSN1121255820110211 Mortgages have already become more expensive in recent weeks, as Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) began began adding risk fees to almost all of the loans they sponsor. Average rates on 30-year fixed rate-loans have already moved from 4.4 percent in November to 5.2 percent now, according to Mortgage Marvel, a loan comparison web site. In a much-awaited report released Friday, the administration proposed winding down the role of the two government-sponsored mortgage repackagers and left open for prolonged Washington debate what would remain in their place. It also called for higher down payments, a lower cap on the amount of mortgage that could be guaranteed and another increase in the fees Freddie and Fannie charge in the short term. All of those measures are likely to steepen the cost of securing a home mortgage. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 11, 2011 Author Share Posted February 11, 2011 White House's unwritten mortgage memo: Act now http://www.reuters.com/article/2011/02/11/usa-housing-consumer-idUSN1121255820110211 Mortgages have already become more expensive in recent weeks, as Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) began began adding risk fees to almost all of the loans they sponsor. Average rates on 30-year fixed rate-loans have already moved from 4.4 percent in November to 5.2 percent now, according to Mortgage Marvel, a loan comparison web site. In a much-awaited report released Friday, the administration proposed winding down the role of the two government-sponsored mortgage repackagers and left open for prolonged Washington debate what would remain in their place. It also called for higher down payments, a lower cap on the amount of mortgage that could be guaranteed and another increase in the fees Freddie and Fannie charge in the short term. All of those measures are likely to steepen the cost of securing a home mortgage. That is an 18% increase! Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 11, 2011 Share Posted February 11, 2011 Securization isn't coming back either - nobody in their right mind is going to buy the shit pumped out the rear end of banks again in a hurry. The strongest incentive was bernanje printing poeple into oblivion - not even that worked - thogh it did gush a few wall street bankes with fat bonuses. Elsewhere in the world it has spawned inflation and increasingly riots which will continue to the US if they carry on. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 13, 2011 Author Share Posted February 13, 2011 Securization isn't coming back either - nobody in their right mind is going to buy the shit pumped out the rear end of banks again in a hurry. The strongest incentive was bernanje printing poeple into oblivion - not even that worked - thogh it did gush a few wall street bankes with fat bonuses. Elsewhere in the world it has spawned inflation and increasingly riots which will continue to the US if they carry on. I think you are right. Quote Link to comment Share on other sites More sharing options...
aa3 Posted February 13, 2011 Share Posted February 13, 2011 Interesting how the cycle has turned. Month by month mortgage standards are getting a little tougher. The transition from a powerful bull market in real estate, to a long bear. Quote Link to comment Share on other sites More sharing options...
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