The Next Big Bailout? FHA Facing "Cataclysmic" Default Rates

The losses cannot remain hidden forever.

Looks like theres one more coffer for the progressives to loot before the collapse.

All these government agencies that absolutely FAIL at their jobs (FHA, Freddie, Fannie, Post Office, Social Security, Welfare, Medicare) yet we want to give government control of things like health care? When was the last time you saw the government do something right? Insanity is running rampant these days.

Housing has a LONG way to go.

It's way too early to claim we have avoided an economic collapse. It's amazing to see an "expert" say that it's a good thing that house prices are still being propped up with taxpayer guarantees and Fed purchases (what he calls injection of capital is just money printing by the Fed as it buys mortgage securities). Truly amazing. All this nonsense will continue until the dollar collapses.

FHA faces only a $Trillion... No problem Timmy and Ben will just write them a check. Vote OUT the INCUMBENTS in 2010.

Quick, more Cool-Aid please ;-)

The biggest problem we all have is that the government run by Wall St. is buying votes with their economic policies. The economic well being of our country is being used as a political football to control re-election of the same representatives that got us into this crisis. Oh! I keep forgetting that they told us the recession is over. Duh... VOTE OUT the INCUMBENTS in 2010.

I like that word "Cataclysmic".. just seems appropriate... The combination of greed, arrogance, collusion, and corruption in business and government prompted a cataclysmic event the likes of which this generation has never seen before. It just rings true....

A "Cataclysmic" Meltdown of epic proportions is upon us.. better guard your Fannie... wahhhh.. it's gonna be biblical when the Sodomites receive their just reward ...

The FHA knows that just like the Bank Toxic assets they can just have the FED take the loses off balance sheet and hide them until they are forgotten. VOTE OUT the INCUMBENTS in 2010.

Health Care? I bet the CBO is off by at least 100% on their guesstimates.. ah what's another couple trillion at this point? And the Laden family sells us the special ink to use on our new dollar bills. Isn't that nice? Have a great day!

Yahoo! Finance User - Tuesday October 13, 2009 09:08AM EDT Looks like theres one more coffer for the progressives to loot before the collapse.//// Pray, tell - How are "progressives" going to benefit from another bailout? Look, the Reagan and two Bush Administrations looted the public treasury completely before Obama came on the scene. Where did that pallet of cash in Iraq go? You must be Rip Van Winkle - you slept through 25 years of the looting of the public purse and are just now waking up, when a black, Democratic president gets in the Oval Office? Obama inherited a building that was on fire. He is just working overtime to save some of its contents!

FHA tax payers (you & me) is now responsible for Mortgages held by (you &me). Is this really bad. self help is the best help.

This is re-distribution of the wealth. The prognosis ain't good and neither is the cure.

Mortgage failures will exacerbate overall deflationary conditions in the economy. Read more at http://www.TheSentinel.biz

The USA is becoming the USSA. Its Communism plain and simple - put into place by the same old folks - Marx and his brethren. John Chapter 8 - read it and understand.

I had a doctor that always told me the worse. If I had a stomach ache he would say its probably ulcers. If I had knee pain he would say its probably rheumatoid arthritis. I guess, when it turned out to be gas/pulled muscle, I felt better. So your guest likes words like complete collapse, cataclysmic, long grinding recession, deep depression, etc. Thank you Dr. Tilson. I have a headache and feel better already by your diagnosis.

I put on a 1% hedge using inverse bond and inverse oil/stock exchange traded funds to hedge my long gold position. Given the nature of these instruments, the hedge will probably just cost me money, but you never know what the future holds. If rates spike on any serious dollar weakness, things are going to get ugly in the markets. So far, bonds are holding, but the dollar has not crashed...yet. Very dicey situation...

Goverment are idiots, you can't cheat economics, eventually the market will fix itself by blowing out all this government cash and leave the crud in the tax payers hands.