Evidently most people don't know that Obama/Acorn in 1995 forced banks to make loans to people who would NEVER pay them back.
So when the FDIC looked at these toxic loans knowing they would never be paid back, the mortgage holders sold them to Fannie/Freddie.
As a result Fannie/Freddie investments that were guaranteed..
Oct. 23,2008 (Bloomberg) --
Fannie Mae and Freddie Mac have an ``effective'' federal guarantee, not the
"full faith and credit'' of the U.S. government, Federal Housing Finance Agency Director James Lockhart said after the hearing. That does give them effectively a guarantee of the U.S. government.''
Lockhart's Fannie, Freddie Guarantee Remarks Stir Up Confusion - Bloomberg
as a result.. investor/banks LOOKED to the U.S. to pay.. i.e. TARP!
All because the Democrats using Community Reinvestment Act to force banks to make bad loans the FDIC would have closed the banks if they didn't resell to Fannie and if these democrats hadn't thwarted ..
Warned by Bush Administration warned about Fannie/Freddie once in ’01, once in ’02, six times in ’03, three times in ’04, once in ’05, five times in ’07, and 17 times in ’08. Congress didn’t listen especially Democrats LAUGH!!!!
"When warned about Fannie Mae in (House Financial Services Committee Chairman Barney Frank (D-MA)
"these two entities -- Fannie Mae and Freddie Mac --
are not facing any kind of financial crisis....
The more people exaggerate these problems, the more pressure
there is on these companies,
the less we will see in terms of affordable housing."
(New York Times, 9/11/03)
And then Committee on Banking, Housing and Urban Affairs
Chairman Christopher Dodd also ignored the President's warnings
and called on him to
"immediately reconsider his ill-advised" position. .
Fannie Mae and Freddie Mac --
are not facing any kind of financial crisis...
(New York Times, 9/11/03.
AND NOW today...
"Spooked by US political wrangling, major investors including the National Pension Service of Korea and the Kuwait Investment Authority have sold out of their holdings of the debt of the US Treasury-backed housing agencies since the 2008 global financial crisis.
Officials from central banks, including the Bank of Japan,
say they will be far more cautious in future.
Fannie and Freddie debt fuels anxiety - FT.com
you mean this klind of warning by bush?
2002: Bush's Speech To the White House Conference on Increasing Minority Homeownership | VDARE.com
Freddie Mae -- Fannie Mae and Freddie Mac -- I see the heads who are here; I want to thank you all for coming -- (laughter) -- have committed to provide more money for lenders. They've committed to help meet the shortage of capital available for minority home buyers.
Fannie Mae recently announced a $50 million program to develop 600 homes for the Cherokee Nation in Oklahoma. Franklin [Raines], I appreciate that commitment. They also announced $12.7 million investment in a condominium project in Harlem. It's the beginnings of a series of initiatives to help meet the goal of 5.5 million families. Franklin told me at the meeting where we kicked this office, he said, I promise you we will help, and he has, like many others in this room have done.
Freddie Mac recently began 25 initiatives around the country to dismantle barriers and create greater opportunities for homeownership. One of the programs is designed to help deserving families who have bad credit histories to qualify for homeownership loans. …
There's all kinds of ways that we can work together to meet the goal. Corporate America has a responsibility to work to make America a compassionate place. Corporate America has responded. As an example -- only one of many examples -- the good folks at Sears and Roebuck have responded by making a five-year, $100 million commitment to making homeownership and home maintenance possible for millions of Americans. …
funny how the housing markets starting their melt down and had their worse drops when 3,5 and 7 year arms started kicking in after bush dismantled barriers that allowed people with bad credit to get loans easier with freddie and fannie backing........
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