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National News See other National News Articles Title: Housing stability is being propped up by hidden bailouts and toxic FHA debt, delinquencies quietly buried under “modifications.” They keep telling you the housing market is “stable,” but stability does not require this much scaffolding, this much manipulation, this much concealment, and the louder the reassurances become, the more you should question what exactly is being hidden under the floorboards. Nearly 70% of FHA borrowers now carry debt to income ratios that would have been considered radioactive a decade ago, yet we are expected to believe that delinquency rates remain low, as if millions of households are somehow immune to math, interest, or layoffs. The only reason the numbers look calm is because 1.2 million FHA mortgages, roughly 15% of the book, are sitting on suspended or reduced payments, a quiet bailout that gets reported as “modifications” rather than the distress it truly is. You have seen this trick before. Before 2008 the banks piled risk into off balance sheet vehicles and sold the illusion of strength right up until the collapse. Today the government itself is doing the masking, with Fannie, Freddie, and FHA effectively freezing loans in time, postponing the reckoning while insisting everything is fine. The media dutifully repeats that delinquencies are contained, omitting that without these props the numbers would already mirror the panic years of 2008 and 2009. It is a con built on omission, and it works only as long as jobs hold up, yet cracks in employment are already spreading. And here is the time bomb: the second the labor market weakens meaningfully, those papered over relief programs explode. Modified loans are not sustainable when the paycheck disappears. Families juggling toxic debt loads cannot hold out, and the bureaucratic safety nets cannot expand fast enough once the unemployment lines grow. That moment, when artificial stability collides with real world layoffs, is when the unraveling accelerates, and history shows it always happens faster than anyone admits in advance. Yet instead of reducing risk, the newest proposal is to supercharge it. Trump is pushing for a so called privatized Fannie and Freddie that would not shrink their footprint but would directly buy mortgage backed securities, financing the binge by issuing debt that trades like short term Treasuries. In plain language, it means using the taxpayer’s credit card to flood housing with artificially cheap loans, driving down mortgage rates not through markets but through government distortion. It is nothing less than permanent quantitative easing disguised as affordability, the same dangerous fuel that ignited the last bubble, now pushed at greater scale and with fewer brakes. The defenders will say this makes homes affordable, but it does not. It makes monthly payments look smaller while pushing prices higher, leaving buyers trapped in inflated markets where the entry ticket is subsidized but the exit risk is theirs. It creates the appearance of stability for an election cycle, but the costs are deferred onto the national balance sheet, just as the GSE nationalizations after 2008 proved. Every silver lining, lower payments, juiced construction, homeowner wealth effects, is in fact the setup for the next collapse, a façade that buckles under the smallest shift in jobs or rates. Peter Schiff @PeterSchiff Trump wants a “privatized” Fannie and Freddie to purchase MBS, then reissue what amounts to Treasury debt to replace it. The idea is to flood the housing market with cheap government credit to prop up prices and create a bigger housing bubble than the one that popped in 2008. The moral hazard is staggering. Investors treat GSE debt as risk free while taxpayers absorb the downside, households are nudged into debt levels that once would have disqualified them, and politicians get to pretend they solved affordability when in reality they inflated it beyond recognition. This is not privatization. It is a public backstop for private profit, a hybrid that combines the worst elements of government distortion and market greed. So ask yourself: how many times do you need to watch the same movie before realizing the ending never changes. How many times can policymakers promise stability while planting the very explosives that make collapse inevitable. Look past the calm numbers, because they are not real. What is real is the toxic debt loads, the manipulated delinquency data, the labor market already wobbling, and the government now plotting to pour gasoline on the fire. The housing crisis is not coming. It is here, it is hidden, and when the mask slips the fallout will be bigger than 2008, because this time the intervention is the bubble. Matthew Pines @matthew_pines “The FHA has waived or reduced monthly payments on nearly 1.2 million mortgages over the past two years— about 15% of its portfolio. Without such forgiveness, delinquencies would be near the levels of the 2008-09 meltdown.” Poster Comment: Sharmine Narwani reposted Azadar Hussain @Azadar04 Columnist and editor at the Cradle Sharmine Narwani explains how the U.S. controls the entirety of Iraq’s oil revenue. Watch: https://x.com/i/status/1964765913049379222 Post Comment Private Reply Ignore Thread
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