Our Worst Nightmare….the Housing Bubble
By Dudley P. Baker, Jr.
Another one of my long term subscribers wrote me recently with his insights on how Fannie Mae and Freddie Mac have transmogrified the offering of simple mortgages into something one would expect to find at a Las Vegas casino. Their financial innovations have facilitated the growth of home ownership on one hand but have set up America for a financial meltdown should the Fed increase interest rates beyond the tipping point. All this begs the questions "Are we there yet?" "How many more increases before the house of cards come tumbling down?" With at least two more increases expected in the first half of 2006 this could well be the year. Below are my subscribers’ comments.
“Our Worst Nightmare - the Puncture of the Current US Housing Bubble”
http://www.kitco.com/ind/Baker/jan312006.html
Another one of my long term subscribers wrote me recently with his insights on how Fannie Mae and Freddie Mac have transmogrified the offering of simple mortgages into something one would expect to find at a Las Vegas casino. Their financial innovations have facilitated the growth of home ownership on one hand but have set up America for a financial meltdown should the Fed increase interest rates beyond the tipping point. All this begs the questions "Are we there yet?" "How many more increases before the house of cards come tumbling down?" With at least two more increases expected in the first half of 2006 this could well be the year. Below are my subscribers’ comments.
“Our Worst Nightmare - the Puncture of the Current US Housing Bubble”
http://www.kitco.com/ind/Baker/jan312006.html
posted by Oil Shock at 9:05 PM
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