Ready to unveil his cunning plan for getting the GSE monkey off his back [6], President Obama is in Phoenix, Arizona today to discuss "restoring security to homeownership."
[7]
Ironic really that he is giving this speech in the epicenter of the new bubble in housing (Phoenix home prices +23% YoY) [8] 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.
Finally, with prepared remarks such as "In my grandfather’s America, houses weren’t for flipping - they were for living in" you know this will be a blistering presentation by the TOTUS and its sleeves-rolled-up vessel.
A wordcloud of Obama's prepared remarks below:
[9]
Full speech here [10].