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Dr. Housing Bubble 09/16/09

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Crewleader Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-17-09 07:51 PM
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Dr. Housing Bubble 09/16/09

5 Reasons for Caution in the Stock Market and Housing Casino. Public Private Investment Program gives it a go. $64 Million Gives you Access to $1.3 Billion in Unpaid Principal.



It is official that the stock market has gone into full casino mode. Since the March low the S&P 500 has rallied to the tune of 60 percent. The only other time you will see such a fierce rally was during the Great Depression. Yet what people fail to see in the current system is the massive amounts of government sponsored juice and housing-roids that are making the system act like it just drank 10 cans of Red Bull. Ultimately after all this partying runs its course, another deep hangover is going to happen. Interestingly enough, if you look at the market sentiment in 1929 you would be hard pressed to find dissenting voices. Those that did make any noise were pushed to the back and the media simply did not cover their warnings. With our current situation, you have the vast majority of those that called it right saying that we need to be cautious of the double-dip recession or to proceed carefully. This is getting a lot of play yet in the midst of all this the market is getting tweaked from the crony banking system. Easy to make lots of money when your biggest trading partner is the U.S. Government.

In a first trial run of the public private investment program, we get a taste of government sponsored juice:

(FDIC) The FDIC has signed a bid confirmation letter with Residential Credit Solutions (RCS), the winning bidder in a pilot sale of receivership assets that the FDIC is conducting to test the funding mechanism for the Legacy Loans Program (LLP). The pilot sale was conducted on a competitive bid basis, and final bids were received on Monday, August 31, 2009. A total of 12 consortiums bid to purchase an ownership interest in a limited liability company (LLC), to which the FDIC will convey a portfolio of residential mortgage loans with an unpaid principal balance of approximately $1.3 billion owned by the FDIC as Receiver of Franklin Bank, SSB, Houston, Texas. The pilot sale involves financing offered by the receivership to the LLC using an amortizing note guaranteed by the FDIC. Bidders for the pilot sale were given the chance to bid two different leverage options, 6-to-1 or 4-1, or to submit a cash bid for a 20 percent ownership interest.

http://www.doctorhousingbubble.com/5-reasons-for-cautio...
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Crewleader Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-17-09 10:36 PM
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1. 10 Questions With Ron Paul
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