Comments on: Will Taxpayers Have to Bail Out the FHA? http://moneymorning.com/2009/10/12/fha-bailout/ Global Investment News Fri, 19 Mar 2010 14:34:57 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: HomeEconomics http://moneymorning.com/2009/10/12/fha-bailout/comment-page-1/#comment-7851 HomeEconomics Mon, 12 Oct 2009 20:01:13 +0000 http://www.moneymorning.com/?p=9348#comment-7851 “I am feeling very confident about FHA,” Waters told The Washington Post. “I think it’s going to be able to continue to be a major source of support for home mortgages.” What she really meant to say was "I think it's going to be able to continue to be a major source of support for TBTF institutions and home PRICES." The FHA does nothing to support home mortgages. If you grow 20%+ in market share during a housing bust, then your portfolio is trashed. The irony is that the FHA needs higher house prices to stay solvent but they are the only provider of "easy" mortgage insurance in today's market. In other words, they are caught in Catch-22 and have to either bite the bullet now and kill the real estate market or continue to drag the taxpayer deeper into a hole of debt. Since we all know the FHA is a tool of the banking and real estate industries, I'd bet on the taxpayer coming out on the short end. “I am feeling very confident about FHA,” Waters told The Washington Post. “I think it’s going to be able to continue to be a major source of support for home mortgages.”

What she really meant to say was “I think it’s going to be able to continue to be a major source of support for TBTF institutions and home PRICES.”

The FHA does nothing to support home mortgages. If you grow 20%+ in market share during a housing bust, then your portfolio is trashed. The irony is that the FHA needs higher house prices to stay solvent but they are the only provider of “easy” mortgage insurance in today’s market. In other words, they are caught in Catch-22 and have to either bite the bullet now and kill the real estate market or continue to drag the taxpayer deeper into a hole of debt.

Since we all know the FHA is a tool of the banking and real estate industries, I’d bet on the taxpayer coming out on the short end.

]]> By: Mono http://moneymorning.com/2009/10/12/fha-bailout/comment-page-1/#comment-7849 Mono Mon, 12 Oct 2009 16:23:12 +0000 http://www.moneymorning.com/?p=9348#comment-7849 FHA Commissioner Stevens is willing to gamble with other people's money. Obviously not with his own. Maxine Waters is closing her eyes to what she will never have to pay. Someone buying a $300,000 house would have to come up with $4,500 extra? Give me a fucking break!! This US Gov't criminal idiocy follows the same path as during the last 5+ years... I am ready to change everybody out, by vote where possible... FHA Commissioner Stevens is willing to gamble with other people’s money. Obviously not with his own. Maxine Waters is closing her eyes to what she will never have to pay. Someone buying a $300,000 house would have to come up with $4,500 extra? Give me a fucking break!! This US Gov’t criminal idiocy follows the same path as during the last 5+ years… I am ready to change everybody out, by vote where possible…

]]> By: Think People http://moneymorning.com/2009/10/12/fha-bailout/comment-page-1/#comment-7850 Think People Mon, 12 Oct 2009 15:07:43 +0000 http://www.moneymorning.com/?p=9348#comment-7850 I stopped reading after "the housing recovery" and "which is only just starting to stabilize"...is anyone with a brain and breathing really believing such rubbish???!!! Those of us living in the real world, and especially those of us directly involved in the real estate market, know the TRUTH!!! We are many years off from any such thing, and quite frankly, highly unlikely it will ever truly "recover". Follow the facts people, not the fluff and BS that "the powers that be" think ignorant people will believe. Puhleeeez. Sorry, forgot to add great post! Can't wait to see your next post! I stopped reading after “the housing recovery” and “which is only just starting to stabilize”…is anyone with a brain and breathing really believing such rubbish???!!! Those of us living in the real world, and especially those of us directly involved in the real estate market, know the TRUTH!!! We are many years off from any such thing, and quite frankly, highly unlikely it will ever truly “recover”. Follow the facts people, not the fluff and BS that “the powers that be” think ignorant people will believe. Puhleeeez.
Sorry, forgot to add great post! Can’t wait to see your next post!

]]> By: Think People http://moneymorning.com/2009/10/12/fha-bailout/comment-page-1/#comment-7848 Think People Mon, 12 Oct 2009 14:14:37 +0000 http://www.moneymorning.com/?p=9348#comment-7848 I stopped reading after "the housing recovery" and "which is only just starting to stabilize"...is anyone with a brain and breathing really believing such rubbish???!!! Those of us living in the real world, and especially those of us directly involved in the real estate market, know the TRUTH!!! We are many years off from any such thing, and quite frankly, highly unlikely it will ever truly "recover". Follow the facts people, not the fluff and BS that "the powers that be" think ignorant people will believe. Puhleeeez. I stopped reading after “the housing recovery” and “which is only just starting to stabilize”…is anyone with a brain and breathing really believing such rubbish???!!! Those of us living in the real world, and especially those of us directly involved in the real estate market, know the TRUTH!!! We are many years off from any such thing, and quite frankly, highly unlikely it will ever truly “recover”. Follow the facts people, not the fluff and BS that “the powers that be” think ignorant people will believe. Puhleeeez.

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