>>The FHA says it can "help an additional 80,000 homeowners in 2008." But there are 2 million supposedly under stress. What happens to the other 1,920,000?<<
TJ,
You ask good questions. Perhaps the Sherlock Holmes story Silver Blaze by Conan Doyle provides a clue...
Gregory (Scotland Yard detective): "Is there any other point to which you would wish to draw my attention?"
Holmes: "To the curious incident of the dog in the night-time."
Gregory: "The dog did nothing in the night-time."
Holmes: "That was the curious incident."
If my hunch is right, the real message is that the "other 1,920,000" are indeed going to take the hit. Yes, there will be some palliative measures like relief from the insidious IRS policy of assessing taxes against the "forgiven' debt. But these folks are getting burned, and so are the folks who bought the toxic mbs waste.
Oh yes, the buzzards are already assembling for the feast...
Vulture Funds Start Circling Credit Markets
Move on Distressed Debt Could Signal Recovery Might Be Long, Slow
By CRAIG KARMIN
August 31, 2007; Page C1
Jeffrey Gundlach, chief investment officer for TCW Group, thinks the turmoil that started with subprime loans and spread throughout other debt markets is going to get worse. He is launching a giant distressed-debt fund aimed at seizing on the turmoil.
The development, along with other similar funds being started, could be an early signal that credit markets are beginning a potentially long process of adjustment to the unrest of the past few months.
Fresh money seeking out investments in mortgage securities could help to clear these markets, which have been highly illiquid and plagued by uncertainty as mortgage delinquencies rise.
more: online.wsj.com
Snowshoe@creativedestruction.com
|
