CNBC … Maria meets “subprime king” Mozilo
How entertaining TV can be … yesterday … CNBC … declared war on the housing mess … it seems to be a common thing for Americans to declare war on anything which is “disturbing” … So the program shows HOUSE FRONT … 
Maria wears a matching jacket to Mozilo’s tie … how sweet …
This compares to interviewing Nick Hogan on traffic security or Amy Winehouse on living a haelthy life … 
OK … here the SCARING statements of … how Maria put it … the man in the eye of the storm …
- limit for loans, Freddie Mac and Fannie Mae can buy MUST be raised … his idea … from 417k $ to “about 850k” (I want a subprime house as well )
-ceiling to take on more mortgages for both mortgage lenders MUST be scrapped
- FED MUST lower rates … and (!!!) bring the discount rate to the FED funds level (he said … this is where the liquidity is) OMG
- housing market to quite HALVE in size (2006 to 2008 compared) … YES this is a reduction of around 1.5 TRILLION $!!!
- Bank of America in for the long run … asked about the value of their investment (it halved within months) he smiled … and says … they are not looking on short term returns (so should we own BAC stock?)
Entertaining and scaring at the same time … by the way … the only time in recent history, where we faced this type of weird money market conditions (unusual wide spread between Central bank rates and interbank rates) was … 1987 … ups …
Tags: BoA, Countrywide, FED, housing, subprime
