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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (8455)	10/25/2002 11:05:40 AM
From: abuelita	Read Replies (2) \| Respond to of 89467

"I Told You So" robmagazine.com interesting man - good article

To: stockman_scott who wrote (8455)	10/25/2002 12:49:44 PM
From: Jim Willie CB	Read Replies (3) \| Respond to of 89467

run headlong and evaluate the risk later The second reason is the perception that the two major buyers and consolidators of mortgages have an implicit government guarantee if property values were to plunge and home owners began defaulting on their loans in large numbers. However, in recent months, this latter assumption of a government bailout of mortgage investors if a full blown crisis were to occur has been questioned by at least one congressional committee. And for that reason, there has been a shift by some money managers into FHA and VA mortgage backed securities. The result has been a faster drop in Federal Housing Administration (FHA) and Veteran Administration (VA) loan rates than standard loan rates. the GinnyMae world is teeny by comparison to the bigass FannyMae world at least investors have begun to perceive the risks in GSE's Congress will soon cap a lid on liability to this govt-subsidized largesse to the housing industry in fact, this represents a subsidy atop a subsidy, since mortgage interest rates help keep carrycost down now GSE-sponsorship keeps rates even lower gonna end badly, probably not a big bang like the late 1980's more like a long slow leak over 4-5 years but due to leverage, which is rising annually as DPaymts shrink, a tremendous drag on the economy / jim