More On The Fannie/Freddie Developments Of December 24

Here is a Wall Street Journal editorial on the December 24 developments at Fannie Mae and Freddie Mac.  This editorial provides some new perspectives on the matter: http://online.wsj.com/article/SB10001424052748704152804574628350980043082.html My original comments on these developments was on December 28. I feel it is critically important to understand the extent of intervention as it pertains to the housing market.  Fannie …

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Redefaults

This was an interesting editorial in The Wall Street Journal a few days ago concerning the “redefault” rate: http://online.wsj.com/article/SB124338503008056785.html These statistics are problematical, especially if one believes the economy will stagnate or worsen from this juncture. It also raises the question as to the effectiveness of intervention measures on default rates and housing prices.  Many of the current …

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