Mortgage bail-out rallies markets, Light at the end of the credit crunch tunnel.

ultra10

justpurchased wrote: »

But do people on here really believe my post will actually stop house prices from falling?

I am just surprised that any bad news is greeted with open arms.
Any good news and some of you go mad and accuse people of mad assumptions, is there a rationality problem on here (not aimed at yourself)

"Arguing" on message boards really is for suckers.. it makes no differance to what will actually happen as you say ... I think property has in the region of 30% to fall from top to bottom, others disagree .... only time will tell ... but as I say one thing is for sure, what we say on here isnt going to make a blind bit of differance ...

justpurchased

ultra10 wrote: »

"Arguing" on message boards really is for suckers.. it makes no differance to what will actually happen as you say ... I think property has in the region of 30% to fall from top to bottom, others disagree .... only time will tell ... but as I say one thing is for sure, what we say on here isnt going to make a blind bit of differance ...

Could not agree more (even though it will make no difference.);)

Generali

ManAtHome wrote: »

Just the dollar going up - pound v euro not changed much. Bit weird that - it's only a change from "we'll sort-of pay out" to "we'll definitely pay out", so can understand the finance sector bouncing, but seems a bit of a knee-jerk in others. Need somebody to clever to explain the dollar rise - would have thought (explicitly) taking on debt would depress the currency.

Many holders of debt issued by FMx2 are non-US based and this is in effect a bail-out of their investments. It makes the US more investable as a result.

IMO, this has as much to do with keeping Asia pumping money into the USA as it does the housing market. The US doesn't save overall thus they need to have their capital provided by those that do.

stonethrower

Doesnt look good for the pound if you can believe this lot

http://www.bloomberg.com/apps/news?pid=20601102&sid=aWURt9ZHvO_s&refer=uk

justpurchased

stonethrower wrote: »

Doesnt look good for the pound if you can believe this lot

http://www.bloomberg.com/apps/news?pid=20601102&sid=aWURt9ZHvO_s&refer=uk

I agree, I can always remember the rate of around $1.6 to the £.

mewbie_2

justpurchased wrote: »

I agree, I can always remember the rate of around $1.6 to the £.

Whatever, blah, blah. Why don't you cut out the middle man and just post endlessly to yourself? I thought I was attention seeking but you have taken it to a whole other level.

justpurchased

mewbie wrote: »

Whatever, blah, blah. Why don't you cut out the middle man and just post endlessly to yourself? I thought I was attention seeking but you have taken it to a whole other level.

What is your problem, are you stalking me?

Generali

mewbie wrote: »

Whatever, blah, blah. Why don't you cut out the middle man and just post endlessly to yourself? I thought I was attention seeking but you have taken it to a whole other level.

Why did you post this?

ManAtHome

chewmylegoff wrote: »

ii) the news about freddie mac and fannie mae is generally positive for the US economy thus strengthening its currency.

Still not getting why it's positive for the US economy - positive for the finance bits, but doesn't make any liabilities vanish. If bad debts increase, do they print more money, raise taxes (after November obviously), get the FBI to track down defaulters (and the CIA to stick a poisoned banana somewhere)? Can't imagine the economy taking off if they conservatorship-ised GM, Ford etc.

Generali

ManAtHome wrote: »

Still not getting why it's positive for the US economy - positive for the finance bits, but doesn't make any liabilities vanish. If bad debts increase, do they print more money, raise taxes (after November obviously), get the FBI to track down defaulters (and the CIA to stick a poisoned banana somewhere)? Can't imagine the economy taking off if they conservatorship-ised GM, Ford etc.

It's not positive for the US economy as a whole - the US Government just had to nationalise (sorry NDG) half the US mortgage industry!

It is positive for foreign holders of US mortgage debt of which there are many and I guess it also sends a message to foreign investors from the US Govt along the lines of, "We share your pain" [and will share in your losses]. That's why the USD went up in value today.