Rocky Road Ahead

[awc]

Where will it all lead?

Besides refinancing your home now (if it makes sense to), now's probably also a good time to buy if you can find a motivated seller who is eager to negotiate their price. Rates are still historically low, and it looks like they're only heading higher from here for the next few years, which means even a more affordable home will cost more in mortgage payments.

As far as investing goes, I'm not sure what to make of all this. I'm thinking that I'll take a chance on Apple because of its increasing exposure to international markets, but otherwise my gut tells me to get the hell out of dollars. Not sure how, yet, but looking into it.

[TRX]

Paulson Plans to Bring Fannie, Freddie Under Government Control

http://www.bloomberg.com/news/worldwide/

"Fannie Mae was created in 1938 as part of President Franklin D. Roosevelt's New Deal plan. With the Vietnam War pressuring the federal budget, Fannie Mae was split from the government in 1968, and shares in the company were sold to the public. Freddie Mac was created in 1970 to provide competition for Fannie Mae."




I wonder if most countries rely on govt. supported institutions to support housing ownership. When entities are created that have little competition, and are considered to big to 'fail', it allows for too much risk to be taken. Why worry about risk when you can seek great riches and then if any failure the taxpayers pick up the bill.

I have probably underestimated how much economic distress is out there.

[SeminoleB]

This is fuggin ridiculous. We ARE BROKE! Why is the government, umm, I mean the taxpayer, going to take on tens (at least) of billions of dollars of losses from these companies f-ing up when we are already at a huge deficit?

On top of that, both candidates believe another stimulus package is in order? Great. We're already short on cash, why not give even more away that we don't have?

I think we're in for some real trouble. If, by some way, we avert tragedy in the near future, we'll most certainly have to pay the piper before long.