What an enlightening two days we have had at the Bi-Partisan Policy Centers Housing Summit in DC. Let’s just say it was not what the organizers had hoped for when the event was announced. HUD chief Julian Castro continued the lead of FHFA chief Mel Watt in directing any housing reform efforts towards the protection of the lower income and poor Americans.This only pushes the two sides even further apart. Republican Senator Isacson bluntly stated “Congress couldn’t pass a kidney stone” in the current partisan atmosphere.” Rep. Maxine waters ranking Democrat on Financial Services Committee blasted Republican Rep. Jeb Hensarling’s bill that would almost entirely privatize the mortgage market.Rep. Hensarling is chair of the House Financial Sevice Committee. Maxine pointed out how catastrophic the Republican plan would be for many lower income Americans. Maxine stated that virtually no progress has been made on GSE reform in the House. The two sides couldn’t be any further apart. Both Rep. Waters and Sen. Isacson further confirmed what Ranking Democrat Rep. John Larson confidently declared to me a few weeks ago, “Fannie and Freddie are not going anywhere” due to unprecedented partisan gridlock. Behind the scenes and in many private discussions this was a consensus the last two days.
Pimco once again let everyone know that after robbing trillions from investors there will be no appetite for private label MBS until the Fannie/Freddie heist is rectified. Pimco seems to follow the old saying, “Fool me once,shame on you;fool me twice,shame on me”. How they could seriously think investors would even consider this is shows just how out of touch many in DC truly are.
Rep. Waters also touched on the lawsuits today when she stated “We will be closely watching investor lawsuits, and their outcome will shape reform.” Now anyone who is “watching closely” can clearly see that the governments defense is in grave peril. This was obviously a confirmation of what I have been saying for months. The democrats will use the court ruling as the perfect reasoning to complete the coup.
In closing, I just want to thank our many readers who have been contributing critical data to our cause. If you have or know someone who has any information that you feel would be helpful, please reach out. We have several options to assist you in getting us the information while retaining your anonymity if you wish.
We are putting the finishing touches on a new post that destroys one of the governments key defense claims.I am still hopeful that the debate between John Carney and I can happen, and I will update everyone once anything is confirmed. Keep the Faith!