"Here We Are In 2015 Looking @ Another Potential Mortgage Crisis"

by JASmius



I'm tired of coming up with ledes for this looming bookend disaster, so today I'll let the Cylons say it:

A meltdown in the subprime mortgage market helped spark the 2008 financial crisis.

"Yet, here we are in 2015 looking at another potential mortgage crisis," star equity analyst Richard Bove of Rafferty Capital Markets writes on CNBC.com.

"Only this time it is different. In 2008, funds flowed in waves into the mortgage industry. In 2015, it appears the funds are drying up."

Or, in other words, TARP was like Daffy Duck's closing act....



....it can only be done once.

Mortgage applications fell 13.2% in the week ended February 13th, according to the Mortgage Bankers Association.

The extended downturn has led officials at the Federal Housing Finance Agency to tell "mortgage originators to ignore the Consumer Financial Protection Bureau's qualified mortgage rules and create mortgages with as high as 97% loan-to-value ratios," Bove says.

In other words, virtually no downpayments.

"They ignored the Treasury Department's mandate to shrink Fannie Mae and Freddie Mac and required these two companies to increase the number of mortgages that they are guaranteeing."

The result: Fannie Mae and Freddie Mac reported losses in the fourth quarter last year, Bove notes.

"Now some people are beginning to get concerned.

No [BLEEP]?

They are worried that the taxpayer may be forced to provide Fannie and Freddie with more cash. They fear more large losses could be reported by these companies," Bove writes.

Amazing it is that as intractable as the TANSTAAFL principle is (There ain't no such thing as a free lunch), the Left is even more determined to bend it to their will, force money to grow on trees, unicorns to materialize and crap Skittles that will bring Marshawn Lynch back for one more season.  (Okay, there's actually a legit chance of the latter happening, but still....).  Because living large on everybody else's life savings is a CONSTITUTIONAL right, yes?

Or, as I've always believed, this is a prime candidate for the Final Crisis that will enable Barack Obama to pull his coup de tat and cement his lifetime presidency.  Because the aforequoted policy insanity looks like anything but an accident.

And now, back to your originally scheduled rumbling.....