A $0 Housing Bailout? You Must Really Think We're Dumb, Timmy
Ok wait a second, let me make sure I get this right: The OMGObama administration is planning to prop up mortgage markets (damn the Federal Reserve, Timmy and Co. will just make up their own bailouts if the Fed won't continue to gobble up MBSs) by buying agency bonds but claims the net impact on taxpayers will be $0 since the agencies will be required to pay program fees perfectly equal to the amount of bailout given to them by the administration?!
I'm confused. No, wait, not confused, I'm outraged. This is mathematically insane, not to mention moronic. Couldn't the agencies just buy each other's bonds and leave Timmy out of the equation?
The advanced money laundering operation continues.
Just as federal officials seek to wind down many bailout programs, the Obama administration announced Monday yet another initiative to prop up the housing market.
Administration officials unveiled a plan to aid state and local housing finance agencies, which provide mortgages to first-time and lower-income homebuyers and enable the development or rehabilitation of rental properties. Officials declined to put a pricetag on the program, but said there would be no cost to taxpayers.
"This initiative is critical to helping working families maintain access to affordable rental housing and homeownership in tough economic times," said Treasury Secretary Tim Geithner.
Under the initiative, the Treasury Department, along with Fannie Mae (FNM) and Freddie Mac (FRE), will purchase housing bonds issued by the finance agencies. This will give the groups the funding needed to make new loans. Also, the government will provide a temporary credit program to allow the agencies to refinance their existing bonds to more favorable terms.
The measure will enable housing agencies to lend to hundreds of thousands of families and enable the development or rehabilitation of tens of thousands of rental units, administration officials said. The agencies operate in all 50 states and in many cities.
The agencies will pay fees to participate in the program, which officials say will cover its cost. They are still working with the agencies to determine the extent of support needed. Earlier news reports said the initiative could cost as much as $35 billion.
The finance agencies have had a tough time funding mortgages since the bond markets went haywire last year. As a whole, they are operating at only 20% to 25% of their usual capacity, with some groups halting their lending completely, said Susan Dewey, president of the National Council of State Housing Agencies.
Bend over, a ghost ass-raping is going to hurt just as badly as the $700 billion ass-raping did.