Aug. 18, 2010 -
PRLog -- “DeltaContinental”
strategists say that rumors that the Obama administration is poised to instruct government-owned mortgage lenders, Fannie Mae and Freddie Mac, to effectively write-off a portion of the mortgage debt of millions of Americans that have loans greater than what their homes are worth may have some substance. http:/www.freddiemac.com/
The administration is facing a challenging mid-term election in November and could conceivably lose their majority representation in Congress as ordinary Americans seek to punish the government over its handling of the economy and its handling of the Gulf oil disaster. http://www.fanniemae.com/
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According to “DeltaContinental”
, the move would represent a stunning political and economic bombshell less than 100 days before the mid-terms.
“DeltaContinental”
analysts suggest that the current market expectation is for another round of quantitative easing from the Federal Reserve but this has failed to increase bank lending. The order, if it comes, would be a more effective means of getting money into the hands of the consumer in the hope that they would begin spending again.
“DeltaContinental”
believes that such a move would almost certainly be seen as another example of the government rewarding the reckless while the prudent are penalized and, again, told clients to protect their wealth from stealth devaluation of the dollar by holding precious metals.
