Comments on: U.S. Government Agrees to Citigroup Bailout http://streetcapitalist.com/2008/11/23/us-government-agrees-to-citigroup-bailout/ Wisdom on such diverse topics as: spin-offs, merger arbitrage, post-bankruptcy equities, global macro commentary and short ideas. Thu, 10 Feb 2011 04:28:00 +0000 hourly 1 http://wordpress.org/?v=3.2 By: inman http://streetcapitalist.com/2008/11/23/us-government-agrees-to-citigroup-bailout/comment-page-1/#comment-1767 inman Mon, 24 Nov 2008 06:26:53 +0000 http://streetcapitalist.com/?p=404#comment-1767 .... that forced Fannie Mae and Freddie Mac to target certain areas and demographic criteria to satisfy regulations of HUD. Given limitations among target groups, it was inevitable that credit would be extended to those who could not pay. And now we are all paying. …. that forced Fannie Mae and Freddie Mac to target certain areas and demographic criteria to satisfy regulations of HUD. Given limitations among target groups, it was inevitable that credit would be extended to those who could not pay.

And now we are all paying.

]]> By: inman http://streetcapitalist.com/2008/11/23/us-government-agrees-to-citigroup-bailout/comment-page-1/#comment-5718 inman Mon, 24 Nov 2008 06:26:00 +0000 http://streetcapitalist.com/?p=404#comment-5718 .... that forced Fannie Mae and Freddie Mac to target certain areas and demographic criteria to satisfy regulations of HUD. Given limitations among target groups, it was inevitable that credit would be extended to those who could not pay. And now we are all paying. …. that forced Fannie Mae and Freddie Mac to target certain areas and demographic criteria to satisfy regulations of HUD. Given limitations among target groups, it was inevitable that credit would be extended to those who could not pay.

And now we are all paying.

]]> By: inman http://streetcapitalist.com/2008/11/23/us-government-agrees-to-citigroup-bailout/comment-page-1/#comment-1766 inman Mon, 24 Nov 2008 06:24:02 +0000 http://streetcapitalist.com/?p=404#comment-1766 Fas 157 is a butcher's knife when a surgeon's scalpal is required. The fundamental problem in the market is this: With the securitization of mortgages, investors can no longer judge the credit of the underlying borrower -- or pool of borrowers. FUrther, with falling real estate prices, investors can no longer depend upon asset values to protect them. Declining home prices coupled with credit problems and no transparency --- i.e. no information --- quite a toxic combination. The disconnect between value and price forced by FAS 157's mark-to-market regime is at the core of the current crisis. As is the policies promulgated in the 60's, at first admirable, that forced Fas 157 is a butcher’s knife when a surgeon’s scalpal is required.

The fundamental problem in the market is this: With the securitization of mortgages, investors can no longer judge the credit of the underlying borrower — or pool of borrowers. FUrther, with falling real estate prices, investors can no longer depend upon asset values to protect them. Declining home prices coupled with credit problems and no transparency — i.e. no information — quite a toxic combination.

The disconnect between value and price forced by FAS 157′s mark-to-market regime is at the core of the current crisis.

As is the policies promulgated in the 60′s, at first admirable, that forced

]]> By: inman http://streetcapitalist.com/2008/11/23/us-government-agrees-to-citigroup-bailout/comment-page-1/#comment-5717 inman Mon, 24 Nov 2008 06:24:00 +0000 http://streetcapitalist.com/?p=404#comment-5717 Fas 157 is a butcher's knife when a surgeon's scalpal is required. The fundamental problem in the market is this: With the securitization of mortgages, investors can no longer judge the credit of the underlying borrower -- or pool of borrowers. FUrther, with falling real estate prices, investors can no longer depend upon asset values to protect them. Declining home prices coupled with credit problems and no transparency --- i.e. no information --- quite a toxic combination. The disconnect between value and price forced by FAS 157's mark-to-market regime is at the core of the current crisis. As is the policies promulgated in the 60's, at first admirable, that forced Fas 157 is a butcher’s knife when a surgeon’s scalpal is required.

The fundamental problem in the market is this: With the securitization of mortgages, investors can no longer judge the credit of the underlying borrower — or pool of borrowers. FUrther, with falling real estate prices, investors can no longer depend upon asset values to protect them. Declining home prices coupled with credit problems and no transparency — i.e. no information — quite a toxic combination.

The disconnect between value and price forced by FAS 157′s mark-to-market regime is at the core of the current crisis.

As is the policies promulgated in the 60′s, at first admirable, that forced

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