August 5, 2010

JAMES PETHOKOUKIS: An August Surprise from Obama? “Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. . . . The political calculation is that the number of grateful Americans would be greater than those offended that they — and their children and their grandchildren — would be paying for someone else’s mortgage woes.” Idiots. Well, I’ve still got my Honk If You’re Paying My Mortgage bumper sticker!

UPDATE: Reader Fred Butzen writes:

You have your “HONK IF YOU’RE PAYING MY MORTGAGE” bumper sticker. Do you also have one for me: “I PAID OFF MY MORTGAGE: I AM A FOOL”?

Nope, but if this happens they’ll be for sale on CafePress within 20 minutes . . . .

ANOTHER UPDATE: A hedge fund reader emails:

I am now seeing institutional brokers urging their customers to pull money out of the mortgage market to avoid taking losses if and when Obama arbitrarily changes the rules yet again.

At what point does political social engineering become willful destruction?

Oh, about this point, I’d say.