from Zero Hedge:
Ready to unveil his cunning plan for getting the GSE monkey off his back, President Obama is in Phoenix, Arizona today to discuss “restoring security to homeownership.”
Ironic really that he is giving this speech in the epicenter of the new bubble in housing (Phoenix home prices +23% YoY) as he offers up a “better bargain for the middle class” which seems to mean a ‘promise’ that home prices will never fall again. Moar intervention, moar unintended consequences of capital mis-allocation, and moar un-affordability for the average middle-class person in Arizona now the bubble is reblown. Grab the popcorn, this will be good – as Obama explains the upside for private investors to take on that first loss piece of the mortgage market (in a rising rate environment with home prices bubbling).
Also ironic that Obama praises the second coming of the McMansion moments after the DOJ sues Bank of America for mortgage-backed fraud. Or, some would say, perfectly timed.
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