CNN: Harvard Economist Says Current Mess Due to Fannie and Freddie

[The Paperboy]

Congress has balked at the Bush administration's proposed $700 billion bailout of Wall Street. Under this plan, the Treasury would have bought the "troubled assets" of financial institutions in an attempt to avoid economic meltdown.

This bailout was a terrible idea. Here's why.

Full Story here

 

[editec]

It all sounds so sensible doesn't it?

But here's the LIE behind this blather...

The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not attempt to fix bad government with more government.

Fannie Mae was a PRIVATE insitution, folks. Get it? Private sector? As in NOT the government?

Those pesky facts sure are biased against Republicans loyalists who just have to insist that government is the problem, aren't they?

 

[Mad Scientist]

Fannie Mae was a PRIVATE insitution, folks. Get it? Private sector? As in NOT the government?
Those pesky facts sure are biased against Republicans loyalists who just have to insist that government is the problem, aren't they?

FM/FM were making money until the government pressured them into making subprime loans.

New York Times - Clinton Adminstration Pressured Fannie Mae - Topix

September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

You're right, facts are pesky things.

 

[Jeepers]

You idiots bore me... read on bush's ownership society at whitehouse.gov... Bush was touting a chicken in every pot and a pot in everyones personal home... this problem is greater than either clinton of FM2.
But while your on this topic.. how many millions have Macs campaign advisors taken from both companies....

 

[HoleInTheVoid]

Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.

Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.

The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.

Fannie Mae has a unique duty to the public it serves -- and the private investors that fuel its service -- to be a model company focused on service, reliability, and value.

Like all who participate in the housing market, Fannie Mae has a responsibility to help home buyers, homeowners, and communities through market challenges. We believe in the long term health of America's housing market. The nation is growing and that growth will bring a renewed demand for housing and for responsible, sustainable mortgage lending. Fannie Mae will be there to help meet America's changing housing needs.

About Fannie Mae

Privately invested, gov't guaranteed.

 

[jschuck12001]

It all sounds so sensible doesn't it?

But here's the LIE behind this blather...



Fannie Mae was a PRIVATE insitution, folks. Get it? Private sector? As in NOT the government?

Those pesky facts sure are biased against Republicans loyalists who just have to insist that government is the problem, aren't they?

Weak comeback, The mortgage industry is government regulated. People feel that the regulations were too lenient.

 

[The Paperboy]

It all sounds so sensible doesn't it?

But here's the LIE behind this blather...



Fannie Mae was a PRIVATE insitution, folks. Get it? Private sector? As in NOT the government?

Those pesky facts sure are biased against Republicans loyalists who just have to insist that government is the problem, aren't they?

Wikipedia: The government sponsored enterprises (GSEs) are a group of financial services corporations created by the United States Congress.

Together, the three mortgage finance GSEs (Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks) have several trillion dollars of on-balance sheet assets.

Link here

I wouldn't mind my "private business" being government sponsored.

 

[The Paperboy]

You idiots bore me... read on bush's ownership society at whitehouse.gov... Bush was touting a chicken in every pot and a pot in everyones personal home... this problem is greater than either clinton of FM2.
But while your on this topic.. how many millions have Macs campaign advisors taken from both companies....

About 125 million less than Johnson and Raines, two of Obama's advisors, one of whom headed his VP search.