R
rdean
Guest
wow..I underestimated the denial factor of some.
Man..no wonder this country is going down the tubes.
Fannie/Freddie used to hold more than 70% of the housing market. Because of an accounting scandal (see below), Freddie/Fannie pretty much stopped giving mortgages.
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Apparently, neither Fannie nor Freddie strictly followed the rules as promulgated by the Financial Accounting Standards Board, and everyone agrees they should have done so
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Wall Street was deregulated by the Republicans who controlled both houses as well as the presidency. Those 70% of mortgages moved to Wall Street where they were sold to anyone who could sign their name. The mortgages were bundled together and sold overseas as "securities" by the now deregulated Wall Street. All perfectly legal, now.
The "securities" were insured and those on Wall Street bet against those securities hoping they would fail, which they did. This is where you get the term "derivatives". Sound familiar?
Those insurance companies had to pay out hundreds of billions. Remember insurance companies going under at the beginning of the recession? Now you know why.
This constant "it's because of Freddie/Fannie" is so over. No one believes this beyond the Republican base. Why? Because it just happened a few years ago. But you know Republicans. Once they get a little idea glued to their tiny minds, it's impossible to get them to see reality. It's been that way for decades.
Look at Iraq. They actually believe they liberated the country. When you show them the new Iraq constitution making Islam the "national religion" and declaring all legislation is now based on Islam, they don't believe it. They insist Iraq is now a democracy. Sure, with women in bags and gays being hung and the Christian population scattered.
Now you've learned two things. Two important things. Maybe, if you are smart, which we both know the odds are stacked against it, you will bother to go look up both the reason for the economy bust and what's happened in Iraq and we will both see who is in "denial".