Among the winners are the publicly traded homebuilders, up on expectations that congress will extend the first-time homebuyers credit. Connected to that news, the Federal Housing Administration is rumored to be in need of a $54 billion taxpayer bailout. The FHA is tasked with subsidizing 3.5% down payment loans to people with shaky credit. Soooooo, a person buying a $230,000 home (about the national average) can use the $8,000 first-time buyers credit, making it a taxpayer-subsidized zero down payment purchase, historically among the most likely to default. Haven't we been down this road before?
Thursday, October 8, 2009
US shares are significantly higher today - retailers generally reported better-than-expected sales figures for September...meaning that declines were more moderate than expected. The DJIA is up just a little over 100 points, but then again it's priced in US dollars, which are hitting their lows over the past year.
Posted by Brendan Wagner at 9:39 AM