Comments on: Mortgage Bill Worries New HUD Secretary Steve Preston http://www.therealestatebloggers.com/2008/07/09/mortgage-bill-worries-new-hud-secretary-steve-preston/ Real Estate Blog, Mortgage, and Development News Sun, 21 Mar 2010 17:00:51 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Caleb Mardini http://www.therealestatebloggers.com/2008/07/09/mortgage-bill-worries-new-hud-secretary-steve-preston/comment-page-1/#comment-229128 Caleb Mardini Wed, 09 Jul 2008 19:17:10 +0000 http://www.therealestatebloggers.com/2008/07/09/mortgage-bill-worries-new-hud-secretary-steve-preston/#comment-229128 This issue is one I've been concerned about for a while. It's not getting enough attention. This is more of a bailout than Preston states. GNMA is going to guarantee these securities. Considering that lenders will have every incentive to move over the worst mortgages on their books, this means a direct banker bailout bailout from taxpayers. In terms of unintended consequences there's already evidence that these bailouts are causing problems. A Bloomberg article from today points to investors who are continuing to make bad bets based upon the thinking that government will continue to backstop companies rather than let them fail. http://criticalnation.blogspot.com/2008/07/bloombergcom.html This issue is one I’ve been concerned about for a while. It’s not getting enough attention. This is more of a bailout than Preston states. GNMA is going to guarantee these securities. Considering that lenders will have every incentive to move over the worst mortgages on their books, this means a direct banker bailout bailout from taxpayers. In terms of unintended consequences there’s already evidence that these bailouts are causing problems.

A Bloomberg article from today points to investors who are continuing to make bad bets based upon the thinking that government will continue to backstop companies rather than let them fail.

http://criticalnation.blogspot.com/2008/07/bloombergcom.html

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