More FHA insanity

From your link

quote:

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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.

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.