JMO - JUST MY OPINION
For those of you who have followed JMO for a while you know that our purpose is to provide news and information regarding the economy as it relates to or impacts the REO, Real Estate and Mortgage industries. Nowadays, it seems like everything impact these industries. What I've begun to look for is "a plan", some indication that the powers-that-be are doing more than chasing this economic crisis. I firmly believe we need to make big moves to get in front of this problem and stop it. This won't happen overnight, no matter how much money you throw at it.
One Fed Chairman said the economic outlook is grim(link) . He is concerned not only of how we provide financial assistance to fund a stimulus package, but also the timing that is involved in properly withdrawing such assistance and returning our economy to self-sufficiency.
Treasury Secretary Paulson recommends turning Fannie/Freddie into a utility-like (link), company that acts as a guarantor of mortgages, but does not hold an investment portfolio as they have in the past. The concern with this is where would banks and wholesale lenders sell off their loans and this would virtually eliminate the secondary market. Such a move would further impact the banks liquidity if they were required to hold and service more of the loans they originated.
Clearly, a much needed change is coming. Hopefully this will be change for the long term benefit of our economy.
Robin S. Reed
JMO-Just My Opinion
ProEquity Management, LLC
robin@proequitymanagement.com
480-242-1952
Timely information. Keep it coming.
ReplyDeleteDave