Bailout Barney And Shrill O'Reilly (Clip)

Frank and O'Reilly Discuss Condos and Social Engineering

It's a short clip (2:24).  Bailout Barney actually makes a good point about Fannie Mae condo financing requirements.  It's a difficult issue but without some change to existing loan requirements, units will continue to sit unsold.  And more existing owners will be forced to sell because of their inability to meet the monthly association fees, which have skyrocketed in some cases due to fewer tenants per building.  See where this is headed--another trip back around the recessionary death spiral of foreclosure.

Comments

[DailyBail]

Nominees emerge for US panel on Wall Street meltdown

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2528101520090625

[DailyBail]

Editorial by Greenspan.

If it puts up a paywall and won't let you see the article, copy the title in google news and access it through there. You will be able to see the entire article that way.

The rise in global stock prices from early March to mid-June is arguably the primary cause of the surprising positive turn in the economic environment. The $12,000bn of newly created corporate equity value has added significantly to the capital buffer that supports the debt issued by financial and non-financial companies. Corporate debt, as a consequence, has been upgraded and yields have fallen. Previously capital-strapped companies have been able to raise considerable debt and equity in recent months. Market fears of bank insolvency, particularly, have been assuaged.

Is this the beginning of a prolonged economic recovery or a false dawn? There are credible arguments on both sides of the issue. I conjectured over a year ago on these pages that the crisis will end when home prices in the US stabilise. That still appears right. Such prices largely determine the amount of equity in homes – the ultimate collateral for the $11,000bn of US home mortgage debt, a significant share of which is held in the form of asset-backed securities outside the US. Prices are currently being suppressed by a large overhang of vacant houses for sale. Owing to the recent sharp drop in house completions, this overhang is being liquidated in earnest, suggesting prices could start to stabilise in the next several months – although they could drift lower into 2010.

http://www.ft.com/cms/s/0/e1fbc4e6-6194-11de-9e03-00144feabdc0.html

[DailyBail]

Robert Reich on Obama Excellent, short read.


http://robertreich.blogspot.com/2009/06/what-can-i-do.html

[DailyBail]

Krugman already grumbling about why we need a 2nd stimulus.

http://krugman.blogs.nytimes.com/2009/06/25/what-i-was-afraid-of/

[Think4aChange]

O'reilly is clueless, and Barney Frank is correct here. As I sit in my condo building of 6 units, the 70% threshhold is already surpassed, regardless of the ability of purchasers to make their payments. 2 units are already rented... so we're already screwed by this rule. I don't have to sell, but I'd like to sell my condo to get a house, even at a loss -- but this regulation simply acts as another barrier to a free-market solution.

[spideydouble]

This is the most sensible discussion I have heard from Rep. Frank in years.

He nails it: "But I think they've got a viscous cycle. If you won't fund anybody until it's seventy percent, it will never be seventy percent and you have a serious problem throughout cities of vacant property." This rule is hilarious. Who else is financing the first seventy percent of the condo buyers? GS for their public servant brothel getaway?

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As a side note, in regards to the Financial Crisis Inquiry Commission, Fred Thompson's CFR membership, white collar crime legal defense work, lobbying efforts for H.R. 6267 in deregulating the Savings and Loan industry and specifically creating loopholes for "Alternative Mortgage Transactions", 9/11-Iraq war propaganda, involvement in getting Scooter Libby's sentence commuted in the Plame affair are some pretty big red flags. In my opinion, this is not the right man for such a job and may taint the Commission from the beginning. Credibility? WTF? Let's just shoot for another 9/11 Commission and prove yet again that our Federal Government could care less about revealing the truth to the public. They might as well call this "Official Cover-Up Commission for Make Benefit Glorious Corporation of Goldman Sachs" and do away with the formalities.

I don't know anything about Alex Pollock, but what besides being a fellow at the AEI think tank qualifies him for the job?

However, I believe Brooksley Born is an excellent choice. I am incredibly stoked about her being a nominee. It's a step in the right direction. At least she saw the possibility of a derivatives nightmare in the cards and acknowledged the need to regulate them, specifically - you guessed it - the now infamous CDS. She resisted strongly enough against the Wall Street/SS Gestapo triumvirate, Greenspan, Summers, and Rubin and their lackey Arthur Levitt, to end her freaking career!

The Born nomination seems like it may actually be a twisted inside joke in some insidious way - a revisiting of the original "Concept Release," but now funneled out through the Washington Industrial Sausage-Making Machine as pabulum damage control with her name now on the comments as an official authority. It's sick!