Fannie Mae Prior to 2008?

Discussion in 'Economy' started by jmn1983, Sep 21, 2012.

  1. jmn1983
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    jmn1983 Rookie

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    I have been in an ongoing argument with a friend J. Stein as to what the structure of Fannie Mae was prior to 2008 in terms of government involvement. He believes the government has always ran the corporation since its inception, despite countless sources showing in 1968 they became publicly traded companies ran by a board that was elected by shareholders. I understand that being a GSE there are certain regulations they must follow set forth by the government, but that is no different from any other business. To what extent did the government play in the operation of Fannie Mae prior to the takeover in 2008?
     
  2. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    it was and is a creature of government 100%. Its charter and preferential status had to be renewed by government. The way this was done was to assure Congress that it was acheiving liberal goals of getting people into homes the free market said they could not afford.

    Moreover, as a creature of government everyone assumed the were backed by government thus they were safer to deal with and so they got business very easily compared to real free market firms. Plus, they were able to borrow money more cheaply than real free market firms, again getting a big liberal crony capitalist advantage.
     
    Last edited: Sep 21, 2012
  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    I want my Fan-nie Mae...
    :eusa_eh:
    Fannie Mae: Despite It All, Americans Want to Buy, Not Rent
    10/02/12 --- Despite barrels of ink spilled over the imminent tsunami in apartment rentals, Americans still want to own their own homes, and they have a lot to say about the new-look U.S. housing market.
     
  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Warren Buffett was a big investor at one point but he sold his stake a long time ago
     

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