“The Obama-mod does the same as most other mods — it turns the homeowner into an underwater, over-levered renter for life unable to sell, re-buy or refi.”
“Wide scale mortgage modifications will ensure that housing remains a dead asset class for years — every time a homeowner gets a mod they are taken out of the mortgage and housing economic equation indefinitely.”
Mr Mortgage – May 13, 2009
It’s been a while but I was glad to read Mr Mortgage again. This guy is one heck of an analyst – I didn’t know what his new website was but was turned on to it by someone I read a lot. I will update my sidebar with this. Read his latest blog post here:
Excellent analysis of the latest foreclosure/housing statistics. Also he points out how an interesting proposition by hedge fund manager Bill Ackman (who made a lot of money predicting the whole housing mess so he understands it VERY WELL – more than the fools working in our government) on CNBC gets shot down immediately by the head of the FHFA (Federal Housing Finance Authority) Jim Lockhart.
Only a defensive person who knows he doesn’t know what the heck he’s doing answers like that. A more pensive person might have said, “that’s interesting” or “Interesting way to approach it.” But no, with egos running wild in government hack jobs (no better than Wall Street believe me – government is full of the same types of people as Wall Street, only often not as smart).
See the video here: CNBC Video
Bottom line – housing is going to get worse and as usual, you are not going to hear the truth from people in government. The whole thing is a joke – get out of the way and let prices crash then we can get over it sooner. Instead these government activists will DRAG OUT the recession for 10+ years as we did in the 1930’s or as Japan has been doing since 1989.