Wednesday, September 2, 2009

Mortgage Bankers to the rescue :(

AlphaNinja - We're saved. The highly impartial Mortgage Bankers Association has some new ideas on how to perpetuate the most damaging idea in the last century - subsidized, universal home ownership.

MBA Offers Proposed Framework for Government Role in Secondary Mortgage Market

“It’s now been more than two years since the secondary mortgage market collapsed,” said Michael D. Berman, MBA’s Vice Chairman and Chair of the Council on Ensuring Mortgage Liquidity. “Rebuilding the secondary market is critical to restoring liquidity and confidence. The government has an important, limited role to play to ensure a stable flow of funds for mortgages.”

I've got an idea. What if instead of the government ENSURING a stable flow of funds, we pulled back the reigns a little. GSE's are simply a way for one taxpayer to subsidize another's purchase of a home. The government's role is to make sure that while big Dow Jones blue chip companies borrow long-term money in the 5-7% range, your idiot neighbor who makes $60k and leases three $40k cars gets to borrow at 4.5% with little to no money down to speculate in the housing market.

The silliness in its entirety:


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