Can kicking continues for real estate and banks

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Subprime JD's picture
Subprime JD
Status: Platinum Member (Offline)
Joined: Feb 17 2009
Posts: 562
Can kicking continues for real estate and banks

Wells to alter Option AMRS to interest only

http://www.thetruthaboutmortgage.com/wells-fargo-converting-option-arms-into-interest-only-loans/

By doing this the can push back the amount of defaults for a long period of time. Less write down on the books.

 

Fannie Mae to allow people to rent foreclosed homes

http://www.calculatedriskblog.com/2009/11/fannie-mae-announces-lease-for-deed.html

With more and more rule changes, mortgage modifications, Fed money printing, capital requirements nonexistence the financial system will float along. 5 years from now is a different story but its safe to say its time to come out of the foxholes and go buy stocks til SPX hits 1200.

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: Can kicking continues for real estate and banks

Crazy!  It's funny how 6-8 months ago I was saying the SPX will get back to 1000 and people were like "you're a nutjob...better get your shorts in before it hits 800 or you'll miss the next crash!"  Now I've been saying it's time to go short yet these bankers/regulators keep finding ways to blow more helium into the bubble.  Trying to thrive under financial central planning is maddening!

The Fannie article has a more sobering/horrifying implication though.  In my view this reveals the real plan behind these institutions in the first place...the takeover of private property and conversion of supposedly free american citizens into tenants of the central government.  Classic use of financial institutions to pull off communism.  

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