Dr. Housing Bubble 02/27/08

[Crewleader]

Captain Credit Crunch: Homes Sales, GSE Love, and Neverland.

You know someone loves you when you post a $3.6 billion quarterly loss and you end the day up 1 percent. We are talking about the mortgage giant Fannie Mae. Incredibly, the action on the stock today was breathtaking. At a point, it was up 10+ percent on the OFHEO announcement of relaxing capital requirements but again, unless Fannie Mae and Freddie Mac get into the business of no income and no documentation loans, there may only be a slight relief in the housing markets. I think the markets realized this by the end of the day thus the 1 percent gain.

We also got more news that housing sales are in the absolute dumps. A few people are starting a market bottom whisper campaign but this won’t last once they realize that the amount of bad mortgages floating out there is simply breathtaking. You can understand the positions of banks if you really force yourself for a second. They realize that if they are made to mark to market many of their toxic mortgage products, they are going to face tough times and large amounts of write downs. Make no mistake about it, the bailout of the monoline insurers is more to ensure that the continue cover up continues and the day of reckoning is pushed a bit further into the future. If you have any doubts, do you think that any of these Real Homes of Genius will actually reach their peak value anytime in the next 10 years? If we use the rating agencies guidelines, these homes are rated AAAAA+++++ and will soon bounce off the current market lows.

I know many of you are bewildered by the market action. Home prices are tanking yet the market is up 500+ points in the last few days. We have so many bailout options on the table it is hard to keep track of them all. Let us put a list of some of the genius ideas to stop the housing correction:

FHASecure

Hope Now Alliance

Project Lifeline

Negative Equity Certificates

Lifting Mortgages Caps to $729,500

Wal-Mart Vouchers at $600 per person

Fed Funds Rates at Historical Lows

Foreclosure Moratoriums

http://www.doctorhousingbubble.com/captain-credit-crunch-homes-sales-gse-love-and-neverland/

[Sarah Ibarruri]

1. Okay, I have a few questions......

1) Will there be any jobs to be had this year?
2) What kind of jobs will be available, besides dishwasher and toilet cleaner?
3) Will the prices of homes drop? (They're still prohibitively sky-high here in Miami, Florida).
4) When will the rich start trickling back down all that money they took from the middle class during Reagan's vooddoo economics, like Reagan promised? Wouldn't that re-start the economy if the rich gave back to the middle class all that money they took and put in off-shore accounts?

[Double T]

2. What about Arresting and convicting all the real estate swindlers on wall street..........

and throughout the world. On a more serious note, I'm sure the creation of $8.00/hour job growth (with NO benefits) will put the housing market and the US economy back on solid footing. Stay tuned to cnbc for MORE happy talk about the failed neocon economy and repeated denials about the existence of a recession.