What they’re being asked to bear is simply to great a burden. As a comassionate Christian, I feel I should step in a take their punishment upon myself.

Here’s a real gem from the article:

“Last week, Lockhart and Treasury Secretary Henry M. Paulson Jr. seized Fannie Mae and Freddie Mac and named new chief executives.

At that time, Paulson blamed the action mostly on the companies’ flawed business models and the housing downturn, and said the managements were responsible for neither.”

How is management not responsible for a flawed business model? Holy Crap, that’s just unbelievable. Company Performance (resulting from the model) is the only thing they’re responsible for!! Furthermore, it’s evident that the wide spread nature of this ‘business model’ (and I use the term VERY loosly) is at the very heart of the housing downturn.

Sadly, here’s the kind of "punishment" I expect we’ll continue to see:

Former Fannie Mae chief executive Daniel H. Mudd and former Freddie Mac chief executive Richard F. Syron will lose $12.59 million in salary, stock and bonuses but keep $9.43 million in retirement and pension benefits under a Federal Housing Finance Agency plan to block their severance payments.

 The agency, which took control of the mortgage giants and removed Mudd and Syron on Sept. 7, announced Sunday that it was eliminating "golden parachute" separation payments to the executives. Congress passed a law this summer granting the agency that power, among others.
 

The regulator said that without the "golden parachute," Mudd would lose $2.28 million in salary and stock, but he still would have access to a pension and 401(k) plan together worth $5.64 million. Syron would lose $10.31 million in salary, stock and bonuses, but keep a pension and 401(k) plan worth $3.97 million.

How do they expect them to get by?

I could not agree more.

Anti-spam word: 1929

i rates (10yr)have dropped 4.10 – 3.33= 77bibs but absolute rates are up 1/8.

Based on the 5-10 swap. 10 year is 88bips over 5year. It had been at 74-75 for months. This is what counts and the trend is for this spread to widen. The fastest way is for the 5 year to be dragged down by the 2year which is now deep below Fed funds target. The Fed must lower its rate below the 2 year for the world economies to survive. If this spread goes over 100 watch out!

DianaK, the 10 year was in the 3teens in June03 while the monthly average was about 3.65.(about 50 bps lower)

Supports my case that Mortgage rates with an monthly average of 5.23 where in the 4,s for about a week in 03.