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NEW -> Contingent Buyer Assistance Program
<p>Bernake: No, I do not believe subprime mortgages are addictive. </p>

<p>Paulson: No, I do not believe subprime mortgages are addictive.</p>

<p>NAR: No, we do not believe subprime mortgages are addictive.</p>
 
The Gentlewoman from New York: "Chairman Bernanke, thank you for your guidance on this subprime crises, but according to Secretary Jackson, the initiatives we have put in place will only keep 260,000 people in their home, but some economists are predicting some 2 to 5 million Americans may lose their homes".
 
<p>If "they"=democrats then temporary=new tax payer funded entitlement with no sunset clause. This is a "feel good" issue with plenty of heart strings to tug on:</p>



innocent homeowners vicitmized by greedy, heartless, and cruel big business

saving the poor from being tossed onto the streets due to foreclosure

rescuing the economy... and yes, the "rich" will be expected to pay their "fair" share

lower capital gains tax = rampant RE speculation. Solution: 70's era tax rates

>

<p>When government fixes a problem, it stays fixed!</p>
 
I Ron Paul. "There is a moral consequence of the system that we have today, and I can't see how we can avoid this moral obligation we have". "The responsibility of the Congress should be to maintain the value of the currency not deliberately tax the people by creating new money and passing on the high cost of living to the people who can least afford it". "Wall Street never suffers from this". "This pushes the cost of living up so the people don't even have a chance to buy a house".
 
Did anyone catch Bush's press conference? His take on the Fed's actions could probably be summarized as, "Heck of a job Bernanke!"
 
<p>I thought the rate cut was supposed to initiate lower interest rates, thus helping the victimized homedebtors:</p>

<p><a href="http://money.cnn.com/2007/09/19/markets/bondcenter/bc.bonds.ap/index.htm?postversion=2007092011">http://money.cnn.com/2007/09/19/markets/bondcenter/bc.bonds.ap/index.htm?postversion=2007092011</a></p>

<p>It is my understanding that most of the HELOCs and most of the to be initiated 30 yr fixed mortgages and almost half of the exisiting ARMs are tied to the 10 yr treasury.</p>

<p><strong>OOPS!!!!!!!!!</strong> </p>
 
<p><em>"It is my understanding that most of the HELOCs and most of the to be initiated 30 yr fixed mortgages and almost half of the exisiting ARMs are tied to the 10 yr treasury."</em></p>

<p>HELOCs are tied directly to the prime rate. I have one and next month it will be 50bps lower. (Insert very sarcastic tone here) I am so excited.</p>

<p>ARMs are tied to the 6 month LIBOR or 1 year CMT. 30 yr fixed can follow the 10 yr treasury but not really. For conforming FNMA bonds they trade in a similar pattern but can go the opposite way and currently they are flat right now. They do however move faster and harder than t-bonds because they contain more risk. Jumbos still haven't changed and I doubt they will any time soon because that has more to do with investor sentiment.</p>
 
Not all HELOC's are tied to the Fed rate. We had one that was tied to 1 -yr LIBOR, and I am positive there are a great majority of them out there with the same problem.
 
<p>I just saw a clip of President Bush's speech. Not only is he the decider but the supply sider chief. Here was my favorite quote:</p>

<p><em>"Heh I think, I think I got a B in econ 101 but I got a(n) A in keeping taxes down."</em></p>

<p>I don't care if you love or hate him he is going to go down in history as the president who has the most ridiculous quotes of any president. </p>
 
<p>Bush gets an "A" in <em>tax deferral</em>. Keeping taxes down, over my dead body.</p>

<p>We're all <a target="_blank" href="http://www.amazon.com/Running-Empty-Democratic-Republican-Bankrupting/dp/0312424620">paying for this mess</a> sooner or later. </p>
 
<a href="http://mortgage.freedomblogging.com/2007/06/29/bofa-analyst-mortgage-correction-just-tip-of-the-iceberg/" rel="bookmark" title="Permanent Link: BofA Analyst: Mortgage correction just ?tip of the iceberg?">BofA Analyst: Mortgage correction just ‘tip of the iceberg’</a>




Read the comments section. There is someone named Jimmy who has had way too much kool aid.
 
The bubble in England





<a href="http://politics.guardian.co.uk/columnist/story/0,,2172247,00.html">Home ownership mania is behind this mass hysteria</a>
 
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