SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: XoFruitCake who wrote (133472)7/13/2008 2:36:57 AM
From: patron_anejo_por_favorRead Replies (1) of 306849
 
>>We finally come to the point where the fundamental problem is being addressed.<<

Actually, this doesn't address the fundamental problem, which is that houses are overpriced relative to owner's ability to pay. That was and is the first domino in the sequence and it remains in the down and locked position. Defaults continue to rise and this will continue to make demands on the asset base of Fannie and Freddie. I'm not into shorting 7 dollar stocks but it's pretty clear that one way or the other current shareholders will get taken out at a tiny fraction of even the current stock price, either by the government creating new stock, or taken over their operation altogether. AFA the rest of the financials, the winners and losers have already been determined. If companies can access the discount window, they will survive in one form or another.

Our economy will function fine without FNM/FRE. There is life after lending for homebuilding.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News