FNM 4.0 Tanks
The Fannie Mae 4.0 Bond dropped over 200 ticks today in a major correction. All parties, banks, insurance, hedge funds ect. were selling in a big way.
The effect will be in mortgage rates on new origination rising .375 to .5 % to the 5% or so range for conforming loans with no loan level price adjustments.
Upon insurmountable debt, the failure of government owned Fannie and Freddie and the obviously unending spending frenzy of the government how can the credit rating agencies still be giving US credit the highest rating?
It is rumored that back in the first Bush administration that the executive branch threatened the credit rating agencies when they considered downgrading the US credit rating.
Some argue, myself included that being that we have resorted to printing more money and hence devaluing our own l in order to pay our debts, that we have, in any sane evaluation, destroyed our credit rating no matter how S&P or Moody’s grades it.
Others argue that the credit rating can only be maintained through the sovereignty of the US military, in essence making the US the safe haven for currencies of all types. I think there is a valid argument there, but it could lead to the dollar no longer being the de facto currency of the world.
It as also arguable that upon recognition of this fact, and the complete disintegration of the dollar based economy and therefor any economy that is so tightly bound to it (all of them basically) that the only safe money is in commodities that will inevitably result in returning to a bartering economy.
Could this be just the stick that the liberals need to shove the one world currency down the throat of the US citizens? See http://www.youtube.com/watch?v=7nD7dbkkBIA and www.bilderberg.org on one world currency. The long version of Russo’s opinion http://video.google.com/videoplay?docid=-1656880303867390173
I am not saying that all of this is gospel, but check it out.
Give me control of a nation’s money supply and I care not who makes its laws.
Mayer Rothshchild
Well we have yet another change to the government programs to help homeowners out there. I think this just goes to show you about the inefficiency of government. This is the third program in less than 6 months that has been enacted with little or no effect on the housing business as of yet. It does look like it has some merrit, however, it is rewarding those that overbought in home by using the tax dollars of those that have not to bail them out.
Talk about the pinnacle of “victim mentality.” Why don’t we all just go out and buy more house than we can afford and apply for one of these governement bailout loans that are good until December 2009. I know my wife would like a bigger house. Wouldn’t yours? Nothing like having the “government” pay for it.
If Obama gets his way and the biggest tax hike in history that he is proposing gets passed, your mortgage deduction for interest will be severly cut, as well as the death tax and corporate taxes increased by over 100% some say, so you have to get it back somehow. If the government is rewarding ignorance, I guess well all have to become ignorant.
