The Economic Drag of Mortgage Deficiencies’ Long Tail
Michael Steinberg submits: You can get whipsawed by the politicians, economists and media predictions of the housing bottom and recovery. Most of the government’s foreclosure prevention programs have unquestionably failed. But the GSE 30-year mortgage security spread over 10-year treasuries is hovering at a record low 63 basis points . And investors are outbidding owner-occupiers for choice foreclosures. Will the Federal Reserve actually end its Fannie ( FNM ) and Freddie ( FRE ) securities purchases as promised? We have already experienced the Fed’s twisted promise of liquidity to Bear Stearns which was reminiscent of former President Bill Clinton’s “it depends on what the definition of 'is' is.” Complete Story »…(read more)
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