Loan Modification

Treasury May Offer Options, Shy Away from Specifics, in GSE Plan

By Implode-Explode Heavy Industries

The Treasury Department's continued silence on its pending plan for the future of Fannie Mae and Freddie Mac is fueling suspicion that the administration does not have a concrete proposal.

Maybe Geithner will treat us to another press conference where announces his plan to release a plan.

Here, let us help you, Turbo Timmy: since we cannot get rid of the GSEs, now that we're permanently relying as a society on propping up houses at 2-3 times their legitimate cash prices, why not create a quasi-government entity to keep the market propped up? Of course, so the cost isn't priced into Treasuries, the institution's bonds will have to be guaranteed only implicitly (but we both know the government will just step in with unlimited cash injections, should they falter... it's not as if we'll be asking the taxpayers! hah!). The organization will of course be totally private, profit-wise, so it has the appearance of adhering to the free-market capitalism we pretend to practice.

And come to think of it, we should create two of these entities (let's call them "government-sponsored", wink wink), to create the appearance of competition. That should just about lock it up.

To top it off, let's give them super-cutesy names, like a cherished aunt and uncle. The American public will be totally blindsided as to how they will be getting ripped off in the long run by this arrangement.

Oh, wait...

Full post as published by Mortgage Lender Implode-o-Meter on January 18, 2011 (boomark / email).