Timmy testified before the House Financial Services Committee today and the following is a recap of some of the more poignant comments from our “friend of Wall Street” Treasury Secretary.
The administration doesn't have any concrete plans, the current model of private shareholders supported by an implicit or explicit taxpayer guarantee is unsustainable and likely to be changed, the question is when and how much”.
"Without the continued activity of the GSEs and the Federal Housing Administration (FHA) in the current environment, mortgage rates would be higher and homeowners would have a significantly harder time obtaining credit,"
"The housing market is still overwhelmingly dependent on the government”.
"Housing finance plays such a large role in our economy, and we are so vulnerable in it”.
“The idea of shareholder-owned government-backed companies is clearly flawed”.
We will do everything necessary to ensure these institutions have the capital they need to meet their commitments".
“Taxpayers are likely to face "very substantial" losses on the government's takeover of Fannie and Freddie”.
"The housing-finance system cannot continue to operate as it has in the past".
Grandpa: implicit or explicit taxpayer guarantee is unsustainable however the housing market is still overwhelmingly dependent on the government and the idea is flawed, but we will do everything to ensure these institutions have capital and the taxpayers are likely to face very substantial losses however the system cannot continue to operate as it has in the past...
Wow Timmy, the grandchildren and I will sleep well tonight.
I already told you...I dunno
(great, next thing will be that blogging vigilant grandpa
working the grandchildren angle...)
No comments:
Post a Comment