Congress Wants This Bubble, Not Reform
The gut-less US congress will be remembered for it's role in creating the housing bubble. It appears that the lack of courage will continue as the economy sails off the cliff. "Legislation to be debated Wednesday to overhaul regulation of Fannie Mae and Freddie Mac has been changed to allow the mortgage giants to buy higher-cost loans in pricey markets."
"It would also allow Fannie and Freddie to increase the percentage of the secondary mortgage market that they serve, challenging competitors who now operate in the so-called nonconforming market."
This blog has criticized the supposed 'independent' Federal Reserve for it's failure to take away the punch-bowl. But there is no question the elected representatives have failed us miserably as well. How can they ratchet up the borrowing at a time like this?
"Some lawmakers are reluctant to curb the holdings because they create liquidity in the mortgage market. 'The last thing any lawmaker wants to be accused of is killing the goose that laid the golden egg in our housing market,'" said Jaret Seiberg.
11 Comments:
This is just the typical "Don't rock the boat" mentality. Usually it takes a disaster to make any significant changes.
Patience my fellow bears, the time will come.
Within the next 11 months the bubble will be in popping stage. It also highly likely that within the next 4 months the bubble will be hitting popping stages.
10:49,
I sincerly hope so....
Remember everyone - congress is not looking out for our best interests. They have not for a loooong time....
The big risk is that they'll prop up this monster indefinitely. Then we can all wear red and be good little socialist slaves.
They're simultaneously killing our retirements, lowering wages, raising taxes, and limiting freedoms. This comes on the heels of wrecking our manufacturing sector, our educational system, and outsourcing our IT to overseas. Again, (most of) these people are not on our side - make no mistake about it. There is a multigenerational trend here which is clear as day.
-JJ
JJ,
While I share your passion, lets try to get through this bubble first LOL :)
lol - yes, the current bubble is the here and now, but there IS a broader perspective to take... as one poster said in another topic, be sure to protect yourself and your family long term... they are gunning for us...
-JJ
'ol - yes, the current bubble is the here and now, but there IS a broader perspective to take... as one poster said in another topic, be sure to protect yourself and your family long term... they are gunning for us...'
Anyone have any suggestions on what we should do to protect ourselves? Where to invest whle waiting to buy a home when the bubble pops???
As far as protecting yourself, I think that being completely debt free is the best way to protect yourself. As far as where to invest - I have been taking money out of the market and even shifting FDIC insured money markets and transferring them to Treasury based money markets. I figure there is potential of a massive banking failure if this all collapses, and the FDIC will not be able to bail out a massive bank failure.
So what are some common ways to invest in Treasury based money markets? Almost every money market account I see has a big FDIC-insured label on it. Does that mean it's automatically a bad idea?
Well.
Everything is the result of the "surplus" human beings after the industrial revolution. That is, too many "surplus" beings try to create wealth without a real work. So it is inevitable that this kind of unsustainable economy happen. Is there any earnest industry now can employ and pay good wages to have the current standard of living? Even the war which used to decrease the population is done by the machines.
As long as we cannot create a full employment, we are doomed.
And when their demonic and satanic bubble will burst, it will ruin American Middle Class. I have seen the future and it is URSS just after the bust. Your politicians are criminals. These bastards are already making it impossible to live with these sky high prices. Bankers and politcians are the scum of the earth.
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