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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (17781)	2/24/2004 2:45:16 PM
From: J. P.	Read Replies (2) \| Respond to of 306849

Yes, you could be right. But isn't the implied backing of the U.S. taxpayer via the GSE's what made part of this boom possible. If I understand this correctly banks can issue loans then dump them on GSE's and let the GSE's have the interest rate risk. Let the taxpayers be the bagholders for any nasty interest rate jumps and the associated nasty derivitives unwinding. Hasn't all the low fruit, the middle fruit, and the high fruit already been picked off the real estate tree for now? I can see wanting to privatize future business if you thought you were in an environment of higher interest rates going lower for a long, long time. But with home loans already at 5%-7% or so? Is Greenspan trying to say go for the ARM's and privatize the loans because low interest rates are here to stay?