Whodunnit? “Fannie Mae and Freddie Mac!” Never have so many owed so much to so few. –Winston Churchill If Winston Churchill had been alive to witness The Crash of ’08 and the events leading up to it, I think he would have offered an updated version of his famous observation about the Royal Air Force pilots who defended...Read More
The Fannie and Freddie Sideshow What do you call two companies that have cumulatively lost tens of billions, are now wards of the state, and continue to receive multi-billion dollar government subsidies? If their names are “Fannie” and “Freddie,” the answer is: the world’s two biggest red herrings. Or, if you prefer, a sideshow to...Read More
Real Estate Pop Quiz Quick, which of the following items make housing more expensive? A. Higher interest rates; B. Limiting (or eliminating) the mortgage interest deduction; C. Less capital for funding mortgages, due to a shrinking role played by Fannie Mae and Freddie Mac (the so-called Government-sponsored enterprises); D. Requiring Buyers to put down 20%....Read More
Housing Multiple Choice What do local real estate insiders think is the biggest threat to housing prices prospectively? A. The winding down of Fannie Mae and Freddie Mac. B. A spike in mortgage rates. C. Phasing out the mortgage interest deduction. D. Imposing a tax on real estate commissions. *Answer: C The above observation is...Read More
Next Up: Resolving Fannie Mae, Freddie Mac Take a load off Fanny Take a load for free Take a load off Fanny And (and) (and) you can put the load right on me –Lyrics, “The Weight” With Quantitative Easing 2.0 playing out now, what’s next up for Congress and the President, economy-wise? Resolving the financial...Read More
Broken Camera? Really Late Night? Guess what you’re looking at (above): A. A water color painting whose colors bled as a result of water damage;B. A simulation of how cataracts affect one’s vision;C. What the front of your house looks like after a very late night.D. An actual photo of a bank-owned foreclosure on MLS....Read More
