cbirch2
Active Member
- Jul 9, 2011
- 1,394
- 49
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Excellent. They are currently obligations of the US government.
And i never claimed otherwise. Maybe you should understand the debate before you inject yourself into it. "Intense" said that mortgages held by fannie and freddie were insured by the government, i said they were not, and you somehow turned that into me saying that the government never decided to nationalize.
But, you were wrong a few posts back.
You'll have to show where you think I'm wrong.
Your track record with that claim isn't very good.
Sorry, i didnt realize you had rudely injected yourself into an argument you were never a part of. Intense made the claim about government insurance, i said he was wrong, and then you injected yourself into an argument you were never a part of by totally changing the topic of the debate.
Intense: "Their debt was insured by the government"
Me: "No it wasnt, the government just decided to nationalize, there was never any insurance policy or explicit guarantee.
You: "Their debt is an obligation on the US government"
See where the problem comes in? It happens when you start claiming ive said shit that i havent, or when you dont understand the difference between "insured by the government from the start" and "a decision to nationalize"
Fannie and Freddie MBS are guaranteed by the government. Their debt is an obligation of the government.
Taxpayers are on the hook. Get it?
Are you stupid? Can you read at all? Did i ever claim otherwise? Right now the government owns fannie and freddie. But that is a development that came about in september 2008. during the bubble the debt of fannie and freddie were not obligations of the US government. It is explicitly stated in their charter.
They were private companies with no guarantee, but the government considered them too important to fail and decided to nationalize them, faced with the prospect of letting them fail.
Starting to understand it yet?
They are obligations of the government now but in the past had no guarantee. Anyone that assumed a guarantee was trading on expectations.