fannie mae and freddie mac future ??

[grand_dra9on]

hey guys, what do you think of fannie mae and freddie mac future, considering recent stock price ??

it keeps sliding down, and even it fell below $0.2 pps last week...
and China still have $300bil worth bond in fannie and freddie...

fannie and freddie is too big to fall but on the other side it also to hard to get up again, in my view...

 

[william the wie]

These GSEs need to be phased out.

 

[Baruch Menachem]

they need to be shut down. Keeping these things around to cause more damage is like using a keg of gunpowder as an ash tray.

 

[Mad Scientist]

Fannie Mae and Freddie Mac weren't included in the recently passed financial reform bill. I wonder why?

 

[Toro]

They're insolvent and wards of the state. The government is keeping them alive as a conduit to keep credit open in the mortgage markets. They are going to have to be recapitalized and dramatically reformed. If not, then they need to be wound down.

 

[CrusaderFrank]

They need to start giving loans to people! Thats the only thing that will stoop the recession.

Fannie, Freddie and FHA already control 100% of the market.

How much more do you want them to have?

In any event, Obama and the Dems continue to keep their hand on the throat of the American economy and in November 2010 come the first Kote strike and one hand is severed then in 2012 the other Dem hand is severed.

 

[BethanyM]

xxxxxxx

 

[waltky]

Fannie & Freddie turn profit but future remains questionable...

Fannie Mae And Freddie Mac Face Uncertain Future, Despite Profitability
March 26, 2014 — While mortgage guarantors Fannie Mae and Freddie Mac have turned profitable in recent months after its epic $187.5 billion taxpayer bailout in 2008, the future of these entities remains nebulous.

As home prices have recovered over the past five years, Fannie and Freddie are expected to send $202.9 billion in dividends to the U.S. Treasury by the end of March.

Still, lawmakers are trying to decide what role the entities will play in the housing market going forward. A bipartisan Senate legislation announced in March would install a new mortgage insurance system, instead of Fannie and Freddie, with greater reliance on private investors swallowing potential mortgage losses, instead of taxpayers and the government immediately stepping in during a future crisis. At this stage, it is unclear if the bill will gain enough political traction to pass.

The entities came under fire for their role in 2008 financial crisis, where subprime and sometimes fraudulent mortgages tainted the housing market, causing an economic house of cards to ensue.

Adding to the uncertainty of Fannie and Freddie is a pending legal battle. Shareholders have filed a lawsuit against the U.S. Treasury, in an effort to gain some of the entities' recent profits. As part of the 2008 bailout, the government was entitled to a 10% yearly dividend. Back in August 2012, a new deal was negotiated in which the Treasury was entitled to a 100% dividend, leaving shareholders with the short end of the stick.

Regardless of the shareholder battle, Fannie and Freddie remain an important part of the housing market. While the entities do not loan directly to consumers, they guarantee and securitize mortgages, packaging them into bonds and selling them to investors. This provides liquidity to the $10 trillion mortgage market.

MORE

 

[Politico]

they need to be shut down. Keeping these things around to cause more damage is like using a keg of gunpowder as an ash tray.

Fannie Mae is shutting down. There is no future. Keep up people.

 

[whitehall]

The oversight responsibility for Fannie Mae was with the House Banking Committee. During the first Bill Clinton term the democrat majority decided that all Americans should have the opportunity of achieving the American Dream of owning their own home regardless of their ability to pay the mortgage. The setup was batter than a Maffia scam. The federal government would threaten banks with civil rights litigation if they didn't make risky loans but the loans would be guaranteed by the federal government. The scam worked for about a decade and democrat activists with no experience were appointed to cushy no-show jobs on the Fannie Mae board. Democrat Barney Frank told Americans that Fannie was in good shape while it was on the brink of disaster. Nobody ever asked Frank what the hell he meant when Fannie Mae collapsed while he was chairman of the House banking committee during the Bush administration.

 

[freedombecki]

hey guys, what do you think of fannie mae and freddie mac future, considering recent stock price ??

it keeps sliding down, and even it fell below $0.2 pps last week...
and China still have $300bil worth bond in fannie and freddie...

fannie and freddie is too big to fall but on the other side it also to hard to get up again, in my view...

It's a redistribution scheme that aimed for the middle class pocket book to give to friends of the oligarchy/dictatorship the United States has become.

 

[waltky]

Granny says it's just a big ol' gubamint shell game...

Don't Replace Fannie & Freddie, Conservative Leaders Urge Senators
April 24, 2014 – Twenty-six leaders of conservative and free-market groups have signed a letter urging the Senate Banking Committee to reject a bill that would replace Fannie Mae and Freddie Mac with a similar government-sponsored enterprise (GSE).

The proposed Federal Mortgage Insurance Corporation (FMIC) would just be “an expansion of the type of government intervention that fueled the housing crisis in the first place,” the April 22 letter stated. It was signed by representatives of the Competitive Enterprise Institute (CEI), FreedomWorks, the Club for Growth, and Citizens Against Government Waste, among others. Senate Banking Committee Chairman Tim Johnson (D-SD) and ranking member Mike Crapo (R-ID) said in a March 16 press release that their proposal “will protect taxpayers from bearing the cost of a housing downturn, promote stable, liquid and efficient mortgage markets for single-family and multifamily housing, [and] ensure that affordable, 30-year, fixed-rate, prepayable mortgages continue to be available…”

But conservative leaders countered that the new entity would not protect taxpayers. Instead, they said the bill would “create housing ‘trust funds’ not subject to Congressional oversight." Furthermore, it "contains very few safeguards to keep those funds’ money from being diverted for political purposes. “The notorious, now-defunct Association of Community Organizations for Reform Now (ACORN) was found by a government inspector general to have misused housing grants for political activity,” the letter pointed out. “Without oversight, other groups could similarly misuse taxpayer dollars under the new ‘trust funds’." “I call it Feddy MIC. It’s not an improvement. It would be much worse. It would itself create hundreds of Fannies and Freddies,” John Berlau, senior fellow at CEI, told CNSNews.com. “It creates more moral hazard, more government dependency, and violates property rights by codifying the Obama administration’s rip-off of Fannie and Freddie shareholders,” Berlau continued. “It’s Fannie Mae and Freddie Mac on steroids.”

Last year, nearly 20 Fannie and Freddie shareholders sued the Treasury Department over a 2012 decision to shut them out of any of the GSEs’ future profits, which they characterized as a “back-door nationalization”. “Why should the nation go through this legislative exercise if the end result will be a system so similar to the one that just imploded?” Heritage Foundation senior policy analyst John Ligon and research fellow Norbert Michel asked in a position paper on the issue. Nearly 100 percent of the housing market, which accounts for almost 20 percent of the American economy, is currently backed by Fannie and Freddie, which buy mortgages from banks and other financial institutions and then resell them on the secondary market as mortgage-backed securities.

MORE