By the amount of messages I have received it’s obvious that some folks are confused by the whole Mel Watt situation. Someone messaged me an excerpt from the Yahoo Finance board in which someone has begun to connect the dots that I have laid out. Here it is – “I’m with you! I see this unfolding the same way – if you have been following it for a while you can start to connect the dots and with some logic can see the way they have recognized that F&F are here for the near future anyway – I personally think they threw in the towel on the whole wind down nonsense when the numbers started coming out about the historically low numbers of first time home buyers and how many all cash transactions the market had… they recognized we were in uncharted water and I don’t believe they liked the way the numbers were coming in… now comes the tight rope act of how to reverse course and not wind up with a boat load of bad press – flip flopping – etc. etc… so move one was to green light Watt to say that he is not going to shrink F&F – but don’t say much more than that…. baby steps here.. I think the next step will be to start walking back the conservatorship… so they can start to re-capitalize.”
This is a very simplistic, but accurate explanation of what is transpiring. I will fill in the blanks more on this as we go along. I could write a 5 page analysis on the Watt speech and a 20 page analysis on Obamas strategy on Fannie and Freddie. It is tricky to convey that kind volume of information in a 3-4 paragraph blog entry. It is critical that people follow along as the narrative develops here. Mel Watt is Obamas trusted lieutenant in what is a trillion dollar Coup which will affect every facet of American life. Don’t think for a minute that the reporters from Forbes and the Wall Street Journal/Enquirer stood even a remote chance of tripping him up in yesterdays interview. It was sad to watch their juvenile attempts to do so. They know the stakes and judging by the brazen way they have begun I have no doubt we will be victorious. Keep the Faith!