August 09, 2007

Never fear, dipshit is here!

President Bush had a little press conference this AM. I actually watched it. With my eyes.

Yeah, you're damn right you owe me.

He berated Congress for not passing his budget. He berated Congress for beating up on his friend, Al Gonzales. I know, who the fuck cares what he thinks?

He also spent some time talking about the markets and the ongoing risk adjustment that's going on. He had this to say...

The basic issue is liquidity, Is there enough liquidity to get the markets moving. I'm told there is enough liquidity

Shit. You. Not.

Right now there is an absence of buyers. It's not because there isn't enough money in the system (how much did M3 grow last year and so far this year?!?!!) or because of rates being too high. The problem is there are no buyers for certain securities. Which means Freddie and Fannie need to jump in and work through the assets now that the risk has been repriced. That is, after all, why the GSE's exist... to provide a stable market for home loans in the United States, especially in cases when the private markets break down.

Oh, and someone tell him to stop using terms he clearly doesn't understand.

Posted by mcblogger at August 9, 2007 12:20 PM

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