Comments on: The Cracks in Congress's Housing Rescue

By: Pat Wollam

Pat Wollam — Wed, 09 Jul 2008 16:10:54 +0000

We MUST get the democrats out of the leadership. They will bring this country down one vote at a time.

By: Karnak ..

Karnak .. — Wed, 09 Jul 2008 13:44:54 +0000

Chas. Kirk has an interesting approach for re-financing into two parts.. However, if some financing is for 50-100 years then a very low % of them will ever be paid off. They will just become ongoing debt for heirs.. — And, none of this exotic and/or extended financing would be necessary if the banks and mortgage investors simply demand that properties have some sort of equity above and beyond the financing.. The mortgage problems stem not only from sub-prime credit but also from 100% financing. If a buyer has no equity then he has no sense of responsibility to fight for the property. A buyer with no equity simply walks away …

By: Greedom

Greedom — Wed, 09 Jul 2008 00:20:53 +0000

from article:

Fannie and Freddie in total have a colossal $5.3 tn portfolio, which equals the total amount of US government debt held by the public, sitting perilously atop a thin sliver of a wedge of a capital cushion in the form of shareholders equity to support that book of business at $54 bn, $38.8 bn for Fannie and $16 bn for Freddie, (Freddie is down from $26.7 bn at year end 2007.)

Let’s call it 53 billion to match the 5.3 trillion portfolio

53 to 530 to 5300 : 5.3 trillion = 5300 billion, or one one hundred:

OR is it they are saying they are worth 5.3 trillion but when it comes down to it, they can only produce 53 billion ?

1 to 100 ratio though. That’s penny to the dollar talk. augh!

By: Greedom

Greedom — Wed, 09 Jul 2008 00:11:40 +0000

From article:

“The plan would also raise the dollar limit on the mortgages Fannie and Freddie buy and insure, either $625,000 per loan under the Senate version or $725,000 in the House’s bill.’

I was kidding in the past that someone in their right mind would have taken out a mortgage for even $500k – no money down, no interest, etc.

Seems 625 to 725k is the NEW max ?

yikes.

I’m hearing that Edgar Winter song (I think it’s EWG) FreeRide in my head !

I can see the CountryWide TV commercial with that song blaring “Come on and take that free ride…”

back in 2003

By: Karen White

Karen White — Tue, 08 Jul 2008 20:25:02 +0000

Liz, you are probably the best business journalist in the country. I am an avid reader of your blog, I followed you at the Wall Street Journal, you have a huge following down on Wall Street due to your smart, intelligent savvy coverage of the accounting scandals of the late ’90s and early part of this decade. You are also stunningly beautiful and sexy on camera, I am a huge fan. So is my entire family! Keep rocking Liz you are great.