tag:blogger.com,1999:blog-12897315.post578753835768996263..comments2024-03-28T09:54:55.115-05:00Comments on Dad29: "Prime" Mortgages SourDad29http://www.blogger.com/profile/08554276286736923821noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-12897315.post-88851120678133273052009-04-22T23:02:00.000-05:002009-04-22T23:02:00.000-05:00...and that's the scary part about using the FDIC ......and that's the scary part about using the FDIC to leverage private investment capital many times over with this PPIP deal.J. Struppnoreply@blogger.comtag:blogger.com,1999:blog-12897315.post-22361353145293605042009-04-22T14:31:00.000-05:002009-04-22T14:31:00.000-05:00Yup.
Obviously, if TEOTWAWKI occurs, the assets a...Yup.<br /><br />Obviously, if TEOTWAWKI occurs, the assets are 'overvalued' and we are all better off becoming survivalists.<br /><br />However, there are far too many variables in here to make any definitive pronouncements...<br /><br />For example: there IS a residual value in foreclosed properties, and there IS a difference between the original mortgage value and the current amount owed.<br /><br />We have no friggin' idea what those numbers are.Dad29https://www.blogger.com/profile/08554276286736923821noreply@blogger.comtag:blogger.com,1999:blog-12897315.post-89872416889276877222009-04-22T10:26:00.000-05:002009-04-22T10:26:00.000-05:00This trend will most definately continue.
The big...This trend will most definately continue.<br /><br />The bigger question is if you believe that delinquencies will continue to rise, therefor, accelerating foreclosures and defaults in residential and commercial loans, how on earth can the Treasury just assume that these toxic assets are "undervalued"? What happens if, say, these assets are horribly overvalued as market conditions continue to deteriorate and defaults go through the roof?<br /><br />Kind of leaves the FDIC out on an island with this PPIP thing doesn't it?J. Struppnoreply@blogger.com