Freddie & Fannie: Central Planning at its worst

Discussion in 'Politics' started by CrusaderFrank, Jul 26, 2010.

  1. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Without Googling, does anyone know what the one and only difference is between these 2 disasters?

    It's slight, it's so slight that its absurd to have 2 separate entities each employing 5,000+ people and gobbling taxpayer funding like it was matter swirling down the accretion disk of a black hole.

    Fannie was the demon spawn of FDR, Freddie was 1970's Dem Congress contribution to Progressive government.

    There is no reason why they should be separate entities! They have almost identical mission and structures!

    "they buy mortgages on the secondary market, pool them, and then sell them as mortgage-backed securities to investors on the open market. Everything else regarding government guarantees, explicit guarantees, implicit guarantees, subsidies and direct government funding is exactly the same for Freddie Mac as it is for Fannie Mae."

    Fannie Mae vs Freddie Mac - Difference and Comparison | Diffen

    The one and only difference is that Fannies buys more from thrifts!

    Why are we paying twice for the exact same mistake?
     
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    Last edited: Jul 26, 2010
  2. blastoff
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    blastoff Undocumented Reg. User

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    The short answer is, government at its finest!!!
     
  3. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    I know! I know!

    So the Dems can provide more patronage jobs to their cronies (i.e. Jamie Gorelick and Rahm Emmanuel). A couple of years' stint results in $$Ms of bonuses, thus setting up the crony with sufficient wealth for life.
     
  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    It's like having 2 separate national post office systems with one that only delivers to Wisconsin on Tuesdays.

    Consolidate them.

    Sell them to the highest bidder.

    The US Government should not try to centrally plan the US Housing market.
     
  5. topspin
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    topspin BANNED

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    bankers and real estate agents like it, the rest of us are stuck with the tab.
    Central planning just doesn't work as well as free markets.
     
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  6. Mr. Peepers
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    Mr. Peepers Senior Member

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    Um, idiot. The "free market" shenanigans of lenders and wall street are what got us AND Frannie/Freddie into this mess. They were among the last to loosen lending requirements, remember? Oh, and 86%+ of toxic mortgages were issued and owned by PRIVATE LENDERS. You guys really do have the memory of a gnat. Free markets DON'T WORK WITHOUT REGULATION. The private sector cannot be trusted to police themselves. This has been proven time and time and time again.

    Central planning my ass. Freddie and Frannie are PRIVATE corporations contracted by the government.
     
  7. KissMy
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    KissMy Free Breast Exam

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    You Win The Idiot of The Year Award!!!
     
  8. Mr. Peepers
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    Mr. Peepers Senior Member

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    OK retard, please refute anything that I posted. With actual real source links - not righty talky word of the day opinion blogs. I'll wait.

    ps. I can post sources.... I love it when a "con$ervative" corporatist calls me an idiot when facts are presented. Makes it feel like opposite day!
     
    Last edited: Jul 26, 2010
  9. Mr. Peepers
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    Mr. Peepers Senior Member

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    Yeah, that's what I thought. Off to the train...
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    As has been noted frequently over the past few decades: Mixed Markets Don't Work.

    Trying to mix aspects of a free market with aspects of centralized control leads to a Civil Cold War. Which is exactly the state of our country today.
     

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