Bruce Krasting's blog

This from the FHFA. The private sector financial institutions nearly killed us. The public sector lenders might just finish the job.

The Fannie tax deal is an indication that Washington is well aware of the risks they face with an angry population. No more insider deals for the 'Fat Cats'. I am just wondering what that might cost us

That tax deal with Fannie that was recently leaked was actually old news. Fannie signed the deal prior to September 30. So why the recent press? Some one was trying to put some muscle on the "deciders' before the talks were made public. Is this that "opaque government" we were expecting?

A question for you. Can gold move up against a basket of currencies? If it does what does it mean for Bernanke and the
QE party? Drink up, it's coming to last call. Seven years ago Bernanke said that the Fed would never print money 'willy-nilly'. The gold market thinks he did.

The deep thinkers at the Richmond Fed have come up with an analytic report on mortgages. The scary conclusion is that when the government is the provider of mortgages there is a significantly higher probability that the loan will default versus a private sector lender. In other words, Uncle Sam is a "soft touch" lender, no need to pay.That conclusion will not sit well with Congress, so it is unlikely that this report will see the light of day. I doubt that many in Congress could read it anyway.

The report breaks down each individual State's rules on defaulting on a mortgage. A must read for those thinking of going down that path.

The FDIC is auctioning off property that it has "acquired" from failed banks. This is going to kill the other owners of foreclosed homes. Who are those other owners? It's Fannie, Freddie and FHA. There is no winner in this policy. The losers live in Hampton Ga. Is Sheila Bair desperate for bucks or does she just not understand that she is cannibalizing the other D.C. lenders?

Swine flu is killing teenagers more than any other age group. This sets up a big conflict with traditional users of ventilators. The experts have sorted this all out. Kind of.

Big time fraud in the Housing Tax Credit. The estimate is up to $600mm. This could be the kiss of death for this program. The backup plan relies on Fannie and Freddie. In other words, there is no plan.

Citi upped the rate on my CC to 30%. Do these guys get it that we hate them? It would appear not. These stupid practices will do this bank more harm then good. How many times will they shoot themselves in the foot? Once too many will be the answer.

Are Fannie and Freddie dead or are they not? That is the question. Keefe, Bruyette & Woods says the stock is toast. As of today the Administration is putting them to work for a few more years. Is the outcome the same but the timing different? What is the "Trickle Up" theory? Will it work?

A California Court case is headed for a resolution. It looks like AIG is the loser. But that means the taxpayers will suffer. If the case is overturned then the taxpayers will suffer. Another no win situation for the folks writing the checks.

FHFA's new top cop spoke before the Senate Banking Committee. Strong words. None of them sounded so good to me. Those that think that America's RE and mortgage crisis are behind us should read this. It will get worse before it gets better according to DeMarco. The good news is that he promised the problems at his Agency will come up for discussion before the end of the year. This is going to get interesting.

The SSTF shortfall for September came to $4.13 billion. A $10 billion swing from 2007. This is the third month in a row of this red ink.The day of reckoning is coming sooner than is forecast. Japan is in trouble over the same problem. We are following them down the same path.

Senators Schumer and Cornyn made it clear they support a big tax credit for home buyers. There is no stopping this train with these two on board. What might it mean?

Reports from FHFA show they are rolling over tons of dead mortgages. What's the objective? To buy some time.