Fed Owning Housing, CHS on Housing, Silver Bay Rental REIT, On QE4 Quotes Chrisman, Long Term Reversion, Basketball, Hacking the Brain, QE3 Kills REITS, JPM on QE, Paul Krugman, Moynihan on Homeownership


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(Fed buying MBS – when Fed owns them all, you will see principal forgiveness)

The final bailout of the underwater homeowners will be from the Federal ReserveOC Housing News – … The federal government will push for principal reductions via the new FHFA head through a third round of the HAMP and HARP programs. When loanowner defaults on their loan or loan modification, the GSEs and FHA will cross check to see who is the investor of the loan. If it’s the Federal Reserve you will get a principal reduction.  … 


Why the Federal Reserve Is So Dangerous – By: Money_Morning – Shah Gilani writes: The Federal Reserve System is a government-sanctioned private enterprise that functions as a socialist tool. It was conceived in 1910 and constructed for the benefit of the private bankers who control it. Congress blessed the scheme in 1913 with passage of the Federal Reserve Act. These days the Fed doesn’t just backstop America’s too-big-to-fail banks. It has expanded its doctrine of socializing banking losses globally.The Market Oracle

(read the housing part) Essays in Fragility: Shadow Banking, Housing Inventory and Liabilities – Charles Hugh Smith – Of Two Minds  Housing has recovered for two reasons:
1. The Federal government has socialized the mortgage industry, guaranteeing over 90% of all mortgages originated
2. Mortgage lenders have withheld homes off the market to restrict supply, thus driving prices up
. About 15% of the entire mortgaged-home market is held in shadow inventory (about 47 million mortgages, about 7 million in the shadow inventory).
(rental REIT) Silver Bay Raises $245 Million in Single-Family REIT IPO – by John Gittelsohn – Bloomberg 
(on QE4 quotes Rob Chrisman) Bernanke Says Not To Worry, He’ll Just Buy The Fiscal Cliff And Turn It Into A Public Park – by Donna S. Robinson – Realty Biz News

(2 great charts) US housing prices revert to long-term per capita income growthSober Look Blog – Over a long period, home prices tend to follow growth in per capita income. After bouncing off the recent lows, home prices have once again reverted to their long-run growth trend 
(this reminds me of high frequency trading) Basketball Isn’t a Sport. It’s a Statistical Network – BY BRIAN MOSSOP – hattip Yves Smith – Wired Magazine

(another step in removing personal privacy) Hackers backdoor the human brain, successfully extract sensitive data – By Sebastian Anthony – hattip Yves Smith – Extreme Tech

How QE3 Slaughtered Mortgage REITs – hattip Mortgage REIT group at Linkedin – By John Maxfield – Motley Fool 
(makes 19 points) JP Morgan Admits That “QE Will Offset Almost All Of Next Year’s Government Deficit” – submitted by Tyler Durden – Zero Hedge

(basically Krugman arguments – 3 points) THE TRUTH ABOUT THE DEFICIT: It’s Not Very Big, And There’s Only One Way To Close It – Joe Weisenthal    – Business Insider

U.S. Must Rethink Housing Ambitions, BofA’s Moynihan Says – By Clea Benson – … said the U.S. government, lenders and borrowers need to reset their expectation that everyone can own a home. … The reset should include a modified role for government in housing, Moynihan said. He called for an “orderly transition” in the role of Fannie Mae (FNMA) and Freddie Mac and said the Federal Housing Administration needs to return to its original focus on helping low- and moderate-income borrowers. … – Bloomberg

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