Can't Fix Stupid
Flecks latest... Fed Can't Fix Fannie Or Freddie, echoes our sentiments that this is a SOLVENCY issue and You Can't Fix Stupid.
A friend of mine known as Mr. Mortgage has also noted lines at multiple locations of Washington Mutual.
The mortgage giants aren't short of cash. They're stuck with bad loans that aren't going away.
FNMA & FHLMC do not have a liquidity problem that can be solved by the Federal Reserve or even by an injection of Treasury capital.
It's a solvency issue. Short-term cash isn't the real problem.
Over time, the mortgage giants' liabilities are quite likely to swamp their assets. Thus their assets are contingent, but their debts are forever.
Short sellers didn't create the housing bubble, which is what caused the unfolding disaster.
Nor did they make the bad loans now going sour. Short sellers do not ruin companies. Short sellers didn't cause Bear Stearns to collapse.
That was a do-it-yourself job, executed by the arrogant chieftains who let themselves get wildly over-leveraged.
A friend of mine known as Mr. Mortgage has also noted lines at multiple locations of Washington Mutual.
The mortgage giants aren't short of cash. They're stuck with bad loans that aren't going away.
FNMA & FHLMC do not have a liquidity problem that can be solved by the Federal Reserve or even by an injection of Treasury capital.
It's a solvency issue. Short-term cash isn't the real problem.
Over time, the mortgage giants' liabilities are quite likely to swamp their assets. Thus their assets are contingent, but their debts are forever.
Short sellers didn't create the housing bubble, which is what caused the unfolding disaster.
Nor did they make the bad loans now going sour. Short sellers do not ruin companies. Short sellers didn't cause Bear Stearns to collapse.
That was a do-it-yourself job, executed by the arrogant chieftains who let themselves get wildly over-leveraged.
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