More FHA insanity

From your link

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“It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.”

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I can't wait until the government hooks me up like this. High-fives for everybody.

in high cost areas fha will insure 2-4plex's for up to 990k-1.2k depending on the lender. yea its crazy but that is a freakin hard loan to get ..not your typical FHA. only places like new york and Cal. does this happen

Hence the reason we are in this turdmire. Or one of the many.

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the median house prices in those areas are ridiculous

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They are as such because we the American tax payer provide subsidized loans to 90% of those who buy and pay such ridiculous prices.

This is so absurd, enough to make anyone's blood boil.

Is there any instance in recorded history of a country getting out of a credit bubble by incentivizing its citizens to take on MORE debt?

For the life of me I can't comprehend why folks like Ken Rogoff, who studied these episodes back to 14th century England, get completely disregarded.

BTW, Jersey Tiger - I seem to recall your discussing housing in Kirkland, WA at one point. I can't find the thread but where in Kirkland were you looking? I used to own a house near 85th St and 124th Ave, about a mile north of that intersection. Bought in 04, sold in mid-08, wound up being quite fortunate timing.

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BTW, Jersey Tiger - I seem to recall your discussing housing in Kirkland, WA at one point. I can't find the thread but where in Kirkland were you looking? I used to own a house near 85th St and 124th Ave, about a mile north of that intersection. Bought in 04, sold in mid-08, wound up being quite fortunate timing.

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I bought a tiny condo at foreclosure auction last month just to learn how the system works. I'm flipping it out for small profit, should close in 2 weeks.

I think this is relevant...

"But look no further than the latest mortgage data for a clue about what the Fed is apt to do. One in 10 mortgage borrowers is at least one payment behind schedule in the third quarter, according to the latest numbers released Thursday by the Mortgage Bankers Association. Add in the nearly 4.5% of mortgage borrowers who are actually in foreclosure and you find that one in seven American homeowners with mortgages is in serious trouble.

Given this level of debt distress, the likelihood of the Fed raising rates dwindles to insignificance until well into 2010 and perhaps beyond."

This tidbit is buried in a FT article about bond yields dropping like a rock.

Gee, I wonder who could be pouring dollars into new treasury issues paying low (or negative) interest? The Fed/treasury/gov are on a mission to reinflate the housing bubble and nothing short of system collapse is going to deter them...unless Ben, Larry, Tim, et al, get their walking papers and the current administration changes horses in mid stream...an unlikely scenario imo.