Wind Down Freddie and Fannie? Whoa! Not So Fast - GOP

[CrusaderFrank]

the proof you right leaning people have NO idea how to solve this mess is you have no idea what caused it.

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis" -- Barney Frank (D-MA)

 

[Toro]

the proof you right leaning people have NO idea how to solve this mess is you have no idea what caused it.

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis" -- Barney Frank (D-MA)

"Reagan showed that deficits don't matter." - Dick Cheney.

That's my favourite...

 

[MaggieMae]

Earlier this year, leading House Republicans proposed privatizing mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) or placing them in receivership starting in two years.

Now, as Republicans prepare to assume control of the House next week, they are offering a more nuanced message: Any retreat of government support in the housing market should be gradual.

"We recognize that some things can be done overnight and other things can't be," said Rep. Scott Garrett, (R., N.J.), incoming chairman of the House Financial Services subcommittee that oversees Fannie and Freddie. "You have to recognize what the impact would be on the fragile housing market as it stands right now."

Cautious statements from key Republicans on the House Financial Services Committee are a shift from the debate over the Dodd-Frank financial overhaul during the spring and summer, when Republicans blasted the Obama administration for leaving Fannie and Freddie out of that legislation.

At the time, Republicans were backing a bill by Rep. Jeb Hensarling, (R., Texas), to cut the government's ties to the mortgage giants, or put them into receivership starting in two years. If they were deemed financially viable under Hensarling's approach, they would be fully private within five years. ...

A hasty end to the government's support of Fannie and Freddie would mean fewer Americans could get home loans, causing home sales and prices to drop even further and making the taxpayer bill for rescuing the mortgage giants even higher, said Rep. Randy Neugebauer (R., Texas), a former banker and housing developer who serves on the House Financial Services Committee.

"You'd cause Freddie and Fannie to have even larger losses than they'd already have," Neugebauer said. ...

"We don't believe that the private market, right now, is willing or able to provide the liquidity that's necessary to get us out of this," said Joe Stanton, chief lobbyist for the National Association of Home Builders.

"To erode that support right now would be a disaster," said Vince Malta, a real-estate agent in San Francisco and a vice president of the National Association of Realtors.

UPDATE: Top House Republicans More Cautious About Fannie, Freddie - WSJ.com

Bloody RINOs, eh?!

It's always fascinating to watch the back-pedaling begin at a new transition.

 

[Ravi]

Earlier this year, leading House Republicans proposed privatizing mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) or placing them in receivership starting in two years.

Now, as Republicans prepare to assume control of the House next week, they are offering a more nuanced message: Any retreat of government support in the housing market should be gradual.

"We recognize that some things can be done overnight and other things can't be," said Rep. Scott Garrett, (R., N.J.), incoming chairman of the House Financial Services subcommittee that oversees Fannie and Freddie. "You have to recognize what the impact would be on the fragile housing market as it stands right now."

Cautious statements from key Republicans on the House Financial Services Committee are a shift from the debate over the Dodd-Frank financial overhaul during the spring and summer, when Republicans blasted the Obama administration for leaving Fannie and Freddie out of that legislation.

At the time, Republicans were backing a bill by Rep. Jeb Hensarling, (R., Texas), to cut the government's ties to the mortgage giants, or put them into receivership starting in two years. If they were deemed financially viable under Hensarling's approach, they would be fully private within five years. ...

A hasty end to the government's support of Fannie and Freddie would mean fewer Americans could get home loans, causing home sales and prices to drop even further and making the taxpayer bill for rescuing the mortgage giants even higher, said Rep. Randy Neugebauer (R., Texas), a former banker and housing developer who serves on the House Financial Services Committee.

"You'd cause Freddie and Fannie to have even larger losses than they'd already have," Neugebauer said. ...

"We don't believe that the private market, right now, is willing or able to provide the liquidity that's necessary to get us out of this," said Joe Stanton, chief lobbyist for the National Association of Home Builders.

"To erode that support right now would be a disaster," said Vince Malta, a real-estate agent in San Francisco and a vice president of the National Association of Realtors.

UPDATE: Top House Republicans More Cautious About Fannie, Freddie - WSJ.com

Bloody RINOs, eh?!

Long live RINOs. The teapartiers will of course melt down over this.

 

[william the wie]

the proof you right leaning people have NO idea how to solve this mess is you have no idea what caused it.

So what either way? First stop the bleeding then diagnose.

 

[Oddball]

the proof you right leaning people have NO idea how to solve this mess is you have no idea what caused it.

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis" -- Barney Frank (D-MA)

"Reagan showed that deficits don't matter." - Dick Cheney.

That's my favourite...

'Cept the topic here isn't Reagan, Cheney or deficits.

 

[Toro]

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis" -- Barney Frank (D-MA)

"Reagan showed that deficits don't matter." - Dick Cheney.

That's my favourite...

'Cept the topic here isn't Reagan, Cheney or deficits.

It's the fifth page already. According to standard USMB operating procedure, its about here where deflection away from the OP occurs.

 

[william the wie]

Scab-picking is fun as we all learned in childhood but how is it useful?

 

[loosecannon]

So nobody can explain why killing the GSE's will lead to a continued downturn in housing prices?

I contend that any downturn that might occur is only a correction against an artificial stimulus that the GSE's may have provided to the housing market bubble of the last two decades.

 

[william the wie]

So nobody can explain why killing the GSE's will lead to a continued downturn in housing prices?

I contend that any downturn that might occur is only a correction against an artificial stimulus that the GSE's may have provided to the housing market bubble of the last two decades.

Except for my usual caveat that the bubble took four decades to form I definitely have to agree.

 

[loosecannon]

So nobody can explain why killing the GSE's will lead to a continued downturn in housing prices?

I contend that any downturn that might occur is only a correction against an artificial stimulus that the GSE's may have provided to the housing market bubble of the last two decades.

Except for my usual caveat that the bubble took four decades to form I definitely have to agree.

which imo underlines the case for killing Fannie, Freddie and Sally. What about VA, HUD and VHA? Whole different animals, is their mission still relevant?

Ultimately all these agencies do is prolong the inevitable, inflate bubbles and skew markets.

It is past time to admit that despite the glorious intentions of Nixon and Johnson a lot of their programs really did not succeed. In fact they have made things a whole lot worse, even for the people they were trying to rescue.