Housing bout to get wild

Here is some history and background by Bloomberg columnist Matt Levine

https://archive.ph/XHuGW

> But in fact, the way they work is that every time their net worth increases, the government’s senior preferred claim — that $348.4 billion — increases by the same amount. So if they earn $30 billion this year, the government’s claim will increase to $378.4 billion, and the shareholders will be no closer to getting paid than they are now.

US speed running the fall of rome.

Coupled with a new Fed chair this is going to be rocket fuel to the housing market. Try not to be the one holding this editions Bear Stearns at the end.

Why no chuck Klarna a banking charter and an IPO while were at it?

It's 2008 all over again.

I'm not sure I see this as a problem within itself. I am actually quite interested in seeing someone do something different because it's only been getting worse.

Ok great. So probable outcomes: 1) Mortgage rates will go up by .5%, because these privatized corporations will no longer have the automatic full backing of the government. 2) Lending will become inequitable, because with profit motive, these institutions will operate more like a bank, with income and racial profiling, 3) Without the federal backstop, we open the doors to another 2008 financial crisis, 4) Housing affordability becomes a slave to the market, becoming cheap during economic booms, tight and expensive during downturns. And the fruits of the IPO will go primarily to tax cuts for billionaires. Not seeing a lot of upside here, folks. Seems like a war on the American people.