IMO if the bill were to pass....it would cause massive disruption at the very least across many markets.
The housing market would be under tremendous pressure and possibly see some type of crash.
With interest rates at 0....there are not many levers to pull to stem this reaction.
The plunge in the housing would immediately spill over to the stock market and banks would start to see real pressure.
I dont see how the tide could be stemmed without massive intervention.....but will that even work this time around ?
Long story short.....I see FNMA / FMCC being part of the foundation to the system America decided to build.
If you tear up the foundation....all that was built on it becomes fragile and threatens collapse.
I dont feel the rest of the economy is strong enough to even consider taking the risk of what the bill proposes.
Nadar and Berkowitz have chimed in to state they agree the bill is DOA.
Ackman getting a little glory over at HLF with an FTC probe initiated on HLF.
We need Jaimie Diamond to sit down with these politicians who are championing the bill.....and share with them a little reality about how we decided to build America and what this action will jeapordize.