"The vested interest lies on Wall Street, not Newport Beach or Main Street."
http://www.pimco.com/Pages/MrGrossGoestoWashington.aspx?WT.svl=hero_IO
Investment Outlook
Mr. Gross Goes to Washington
- Americans now know that housing prices don’t always go up, and that they can in fact go down by 30%–50% in a few short years.
- Having grown accustomed to a housing market aided and abetted by Uncle Sam, the habit cannot be broken by going cold turkey into the camp of private lending.
- Private mortgage lenders will demand extraordinary down payments, impeccable credit histories and significantly higher yields than what markets grew used to over the past several decades.
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