WHat is the real deal with Obama and Fannie/Freddie

[iamwhatiseem]

August is a very busy month in my industry so I haven't kept up with anything...what is going on with Obama shuttering these two? (Which should have never existed in the first place)....this is polar opposite of what I would figure he would do.
There has to be a motive here.

 

[CrusaderFrank]

Well, first of all they didn't pay back a nickel of the bailout. Obama changed the rules midstream and the dividend payouts went to the Treasury instead.

They should not be allowed to ever buy a mortgage on a single family home ever again, but they do multifamily well.

This is the first thing Obama has proposed that I agree with, so I'm very worried

 

[iamwhatiseem]

Well, first of all they didn't pay back a nickel of the bailout. Obama changed the rules midstream and the dividend payouts went to the Treasury instead.

They should not be allowed to ever buy a mortgage on a single family home ever again, but they do multifamily well.

This is the first thing Obama has proposed that I agree with, so I'm very worried

That's what I am saying - this is obviously out of character for his administration. It would be like if Bush was trying to pass Obamacare. This is not making any sense.

 

[jon_berzerk]

Well, first of all they didn't pay back a nickel of the bailout. Obama changed the rules midstream and the dividend payouts went to the Treasury instead.

They should not be allowed to ever buy a mortgage on a single family home ever again, but they do multifamily well.

This is the first thing Obama has proposed that I agree with, so I'm very worried

That's what I am saying - this is obviously out of character for his administration. It would be like if Bush was trying to pass Obamacare. This is not making any sense.

the other shoe will drop shortly

 

[zeke]

It will be so cool when the mortgage giants (Fannie and Freddie) are not involved in the mortgage industry. Just think. If private industry says interest rates on a mortgage should be 12%. Then there you go. 12%.

And Obama says that our government will still continue to guarantee Mortgage Backed Securities.

Just think, when all those high priced junk mortgage loans get re package into MBS's, and they go bad for the big boy investors, the Federal Government will be there to make it better.

No wonder you rethugs just love this idea. It will impose a hardship on the middle class and make the ultra wealthy a lot more money.

 

[NightFox]

Well, first of all they didn't pay back a nickel of the bailout. Obama changed the rules midstream and the dividend payouts went to the Treasury instead.

They should not be allowed to ever buy a mortgage on a single family home ever again, but they do multifamily well.

This is the first thing Obama has proposed that I agree with, so I'm very worried

That's what I am saying - this is obviously out of character for his administration. It would be like if Bush was trying to pass Obamacare. This is not making any sense.

the other shoe will drop shortly

Of course it will, because American politics can take ANY good idea and mangle it into a mechanism for looting the citizenry and aggrandizing the state. I will stop short of ascribing any ulterior motives to the President on this one, it's a good idea on the surface, it would be a much better idea if he followed up by making it clear to congress that he will not sign any legislation that is not singularly focused on carrying it out and that specifies all the details necessary to accomplish it, in other words letting Congress know that he won't accept it buried in another thousands of pages monstrosity that leaves all the details up to the regulatory bureaucracy to write while masking a plethora of tax payer funded bribes and goodies for special interests.

 

[iamwhatiseem]

That's what I am saying - this is obviously out of character for his administration. It would be like if Bush was trying to pass Obamacare. This is not making any sense.

the other shoe will drop shortly

Of course it will, because American politics can take ANY good idea and mangle it into a mechanism for looting the citizenry and aggrandizing the state. I will stop short of ascribing any ulterior motives to the President on this one, it's a good idea on the surface, it would be a much better idea if he followed up by making it clear to congress that he will not sign any legislation that is not singularly focused on carrying it out and that specifies all the details necessary to accomplish it, in other words letting Congress know that he won't accept it buried in another thousands of pages monstrosity that leaves all the details up to the regulatory bureaucracy to write while masking a plethora of tax payer funded bribes and goodies for special interests.

I see now, I didn't know they were still going to back MBS's....it all makes sense now.
Yet ANOTHER big f*cking neon flashing sign for Americans to show that we are no longer a Democratic Republic but a plutocracy.
ANOTHER example of our government extracting from the middle class to give to Wall Street and corporate interest.
Wake the f*ck up people and stop all of this Democrat vs. Republican bullshit and realize that corruption and plutocratic policies are the real enemy. We are just too stupid to realize we are being played against each other while they continue to extract our way of life to enrich themselves en masse.
The fact that Wall Street has had two record years in the middle of a terrible economy, the fact that large corporations are doing splendidly well while small and independent companies are closing/merging and fighting just to stay in business...the fact that 93% of American job growth is PART-TIME and low wage jobs - meanwhile corporate wages and high earners are doing absolutely fantastic (28% earnings increase during same time period)....how long before everyone realizes that the Democrat vs. Republican madness is just a diversion from reality????????????????????????????????????????

 

[NightFox]

the other shoe will drop shortly

Of course it will, because American politics can take ANY good idea and mangle it into a mechanism for looting the citizenry and aggrandizing the state. I will stop short of ascribing any ulterior motives to the President on this one, it's a good idea on the surface, it would be a much better idea if he followed up by making it clear to congress that he will not sign any legislation that is not singularly focused on carrying it out and that specifies all the details necessary to accomplish it, in other words letting Congress know that he won't accept it buried in another thousands of pages monstrosity that leaves all the details up to the regulatory bureaucracy to write while masking a plethora of tax payer funded bribes and goodies for special interests.

I see now, I didn't know they were still going to back MBS's....it all makes sense now.
Yet ANOTHER big f*cking neon flashing sign for Americans to show that we are no longer a Democratic Republic but a plutocracy.
ANOTHER example of our government extracting from the middle class to give to Wall Street and corporate interest.
Wake the f*ck up people and stop all of this dumbass Democrat vs. Republican bullshit and realize that corruption and plutocratic policies are the real enemy. We are just too stupid to realize we are being played against each other while they continue to extract our way of life to feed themselves.

Good points, however I would suggest that there's nothing inherently wrong with the MBS concept, as long as the risks are spelled out to investors as clearly as the potential rewards and that investors bear the FULL responsibility for those risks should they materialize, in other words if you are told it's garbage and then still elect to buy the garbage when the excrement hits the fan you are on your own to clean up the garbage (don't look for help from tax payers that didn't buy the garbage).

 

[zeke]

Of course it will, because American politics can take ANY good idea and mangle it into a mechanism for looting the citizenry and aggrandizing the state. I will stop short of ascribing any ulterior motives to the President on this one, it's a good idea on the surface, it would be a much better idea if he followed up by making it clear to congress that he will not sign any legislation that is not singularly focused on carrying it out and that specifies all the details necessary to accomplish it, in other words letting Congress know that he won't accept it buried in another thousands of pages monstrosity that leaves all the details up to the regulatory bureaucracy to write while masking a plethora of tax payer funded bribes and goodies for special interests.

I see now, I didn't know they were still going to back MBS's....it all makes sense now.
Yet ANOTHER big f*cking neon flashing sign for Americans to show that we are no longer a Democratic Republic but a plutocracy.
ANOTHER example of our government extracting from the middle class to give to Wall Street and corporate interest.
Wake the f*ck up people and stop all of this dumbass Democrat vs. Republican bullshit and realize that corruption and plutocratic policies are the real enemy. We are just too stupid to realize we are being played against each other while they continue to extract our way of life to feed themselves.

Good points, however I would suggest that there's nothing inherently wrong with the MBS concept, as long as the risks are spelled out to investors as clearly as the potential rewards and that investors bear the FULL responsibility for those risks should they materialize, in other words if you are told it's garbage and then still elect to buy the garbage when the excrement hits the fan you are on your own to clean up the garbage (don't look for help from tax payers that didn't buy the garbage).

Now if the private banking industry was going to accept all the risks, there wouldn't be the need for the Feds to guarantee the MBS's. Would there?

No, this is just a way for the bankers to bump interest rates and be protected if they make the wrong bet at the casino.

Someone above mentioned "plutocracy". That person "gets" it. The rest of us are going to "get" it sometime or another. After the plutocrats control ALL the money. The 40% of the nations wealth that they control, that is just the starting point as they work to control ALL the wealth.

 

[NightFox]

I see now, I didn't know they were still going to back MBS's....it all makes sense now.
Yet ANOTHER big f*cking neon flashing sign for Americans to show that we are no longer a Democratic Republic but a plutocracy.
ANOTHER example of our government extracting from the middle class to give to Wall Street and corporate interest.
Wake the f*ck up people and stop all of this dumbass Democrat vs. Republican bullshit and realize that corruption and plutocratic policies are the real enemy. We are just too stupid to realize we are being played against each other while they continue to extract our way of life to feed themselves.

Good points, however I would suggest that there's nothing inherently wrong with the MBS concept, as long as the risks are spelled out to investors as clearly as the potential rewards and that investors bear the FULL responsibility for those risks should they materialize, in other words if you are told it's garbage and then still elect to buy the garbage when the excrement hits the fan you are on your own to clean up the garbage (don't look for help from tax payers that didn't buy the garbage).

Now if the private banking industry was going to accept all the risks, there wouldn't be the need for the Feds to guarantee the MBS's. Would there?

No, this is just a way for the bankers to bump interest rates and be protected if they make the wrong bet at the casino.

There is no need for the Feds to guarantee MBS risk just there is no need for the Feds to guarantee risk in the equities markets, the substance is the fact the political populism is much better served by telling people that they have a "right" to home ownership and then pushing massive piles of risk aversive capital into the hands of MBS originators so politicians can attempt to make it a reality. It's easy to attract risk aversive capital when you tell it that the tax payer will back stop the risk and that treasuries were going to show dismal returns for the foreseeable future (that's why capital was flowing into sub-prime MBS in the first place), not so easy when it becomes a proposition where the risk isn't mitigated by government guarantees.

Someone above mentioned "plutocracy". That person "gets" it. The rest of us are going to "get" it sometime or another. After the plutocrats control ALL the money. The 40% of the nations wealth that they control, that is just the starting point as they work to control ALL the wealth.

Plutocracy is only partially accurate IMHO, what we have going on is a kleptocracy and most of the citizenry is too wrapped up in partisan pissing contests to notice it.

 

[CrusaderFrank]

It will be so cool when the mortgage giants (Fannie and Freddie) are not involved in the mortgage industry. Just think. If private industry says interest rates on a mortgage should be 12%. Then there you go. 12%.

And Obama says that our government will still continue to guarantee Mortgage Backed Securities.

Just think, when all those high priced junk mortgage loans get re package into MBS's, and they go bad for the big boy investors, the Federal Government will be there to make it better.

No wonder you rethugs just love this idea. It will impose a hardship on the middle class and make the ultra wealthy a lot more money.

You really don't understand free enterprise at all, do you

If a mortgage company wants to charges 12%, that's OK, no one is FORCING you to accept their terms; you can go someplace else. Ever hear of "the Internet"?

 

[lynn63]

the government owns 50% stock in Fannie and Freddie and now they are making profits which the government did not want to happen. Since those profits actually belong to the citizens and would pay down our debt, the government didn't want that so that is why their stock is being sold.

 

[iamwhatiseem]

the government owns 50% stock in Fannie and Freddie and now they are making profits which the government did not want to happen. Since those profits actually belong to the citizens and would pay down our debt, the government didn't want that so that is why their stock is being sold.

 

[iamwhatiseem]

Someone above mentioned "plutocracy". That person "gets" it. The rest of us are going to "get" it sometime or another. After the plutocrats control ALL the money. The 40% of the nations wealth that they control, that is just the starting point as they work to control ALL the wealth.

Plutocracy is only partially accurate IMHO, what we have going on is a kleptocracy and most of the citizenry is too wrapped up in partisan pissing contests to notice it.

Probably more accurate, but of course that is just semantics...the single greatest threat to the American former way of life, is corporatism and the transition of power from the people to special interest - which has obviously already happened. The government and their corporate/special interest masters have us exactly where they want us in terms of divide and conquer. To think that still to this day, the vast majority of people still believe that the other party is the problem rather than they are ALL the problem.
I realize that this statement sounds conspiratorial, and I must walk around with tinfoil on my head - but that is exactly what people were saying about those in the early 2000's who said the mortgage industry is going to collapse.