Doesn't the 'mort' mortgage mean death? Read the small print!
"Global stocks tumbled, led by bank shares, as concern swept through financial markets that a widening credit crunch may hurt economic growth and earnings. A gauge of U.S. stock market volatility climbed to the highest since April 2003. The Chicago Board Options Exchange Volatility Index [a k a the panic index] gained 10 percent to 29.12. Higher readings in the so-called VIX, derived from prices paid for S&P 500 options, indicate traders expect bigger price swings in the next 30 days."
But, W. says 'don't worry be happy,'
"The fundamental business of the country . . . is on a sound and prosperous basis. "
Oh, sorry, that was Herbert Hoover right after the stock market crash in 1929.
W. actually said yesterday, "The fundamentals of our economy are strong. . . I'm told there is enough liquidity in the system to enable markets to correct."
Man, that's a relief! We got that good liquidity goin' on.
"One thing is for certain," W. says, "is that there needs to be more transparency in the -- in financial documents. A lot of people sign up to something they're not sure exactly what they're signing up for -- more financial literacy I guess is the best way to put it. "
Yeah, that's it, they didn't read the small print. The global finanical system is going to hell in a hand basket, a la New Orleans, and W. says 'read the small print.'
But what about regulation, you say? Why didn't anyone in W.'s administration notice these scheisters were out there signing up people to buy houses that in some cases didn't even have job?
Now, that's all going to change, though, I read at Mortgage News Daily that,
"At the end of June the five agencies that regulate federally chartered banks and their subsidiary lending corporations issued final guidance to those institutions regarding subprime lending, particularly the so-called exotic or non-traditional loans that are threatening to bring down those lenders who haven't already filed bankruptcy or shut their doors. . . In a press release regarding the GSE letters OFHEO said that Fannie Mae and Freddie Mac have taken proactive steps to assure that (loan) sellers are clear as to what mortgages they will accept and reject.
All mortgages sold to Freddie and Fannie with an application date on or after September 13 of this year must conform to the guidance but lenders are urged to put the new rules in place as soon as possible." [Not a moment too late!]
Uh, guys, the horses are already out of the barn and way down the road.