Looser
Lending Blamed as Foreclosures Rise Squeeze
Play: Rising Costs, Lower Pay EDITOR'S
COMMENTS Author Yip is a pretty smart lady. She's been writing about pretty bubbles in real estate and the GSEs for quite some time. This essay recently penned is to the point and most straightforward. It identifies the credit score paradigm of the FED and the GSEs and the mortgage industry which is an outgrowth of the Fraud of Appraisal Regulation, FIRREA 1989, as the main culprit in loose lending sinking big ships. Given the fact that the Berkeshire Hathaway Boys, aka Warren Buffett and his sidekick, Charlie Munger, bailed on all of their GSE holdings in 1999, because of this whole mess -- should tell you something. Now we even have the foreclosure company vehicles trying to hide all the skeletons in everyone's closet [lending portfolios], to make pretty those bundled loans that are going bad. No one wants a paper trail in the foreclosure liquidation arena. Everyone seems to want an EDI foreclosure appraisal report so they can bury it with the skeleton. Hummmm... sign of the times, or are these liquidating companies on the payroll directly from the accounting footnotes at the GSEs? Time will tell. In Squeeze Play, Author Yung describes a shrinking middle class at the expense of the FEDs monetary destruction. The Author has some real life situations in the article -- which should make folks wake up and smell the coffee. I got news for folks -- it is going to get a lot worse, before it gets any better. Ole Bear, Editor © 2004 Realty Reality |
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