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

To: Handlarz Piotrek who wrote (91625)	10/9/2007 12:23:57 PM
From: ChanceIs	Respond to of 306849

>>>GSE's without which lending money to people who cannot pay it back would never happen<<< The most touted explanation for the existence of the GSEs is that they enable, facilitate or create the secondary mortgage market. I suppose that at one point in time, they were useful, but as most things governmental thyey have brought more harm than good. We have a secondary market in stocks - it occurs on the NYSE, Toronto, NEKI, through NASDAQ, etc. I don't think for one minute that the government needed to sponsor it. The new MBS concept can be thought of as a new, parallel secondary market for mortgages, and has been beneficial in providing liquidity. There are lots and lots of ways to restructure the process of mortgage lending. I don't see the need for the GSEs. Lots of talk about raising the luxury house GSE cap. If we wait another year, that won't be necessary because those 10% drops result in larger absolute $$$ declines for those high end houses. Wouldn't want to jump the gun on that. ;-)