Wednesday, May 2, 2007
Housing On The Back Burner For Now - GMAC LLC
GMAC pushed into red by mortgage unit. We're talking crimson. As the Dow continues to hit record highs, this mortgage stuff is in the background, but still there. It occurs to me that around mid April, right after tax filing time, Freddie Mac announced a $20 bln program to support the subprime market. Other money center banks followed suit with billion dollar programs to help distressed borrowers. Amazing that right around that time the stock market really took off as the mortgage stuff was put on the back burner by a quasi subprime bailout. Just a thought.