Fannie Mae, Freddie Mac to be Put Under Federal Control, Sources Say ...something stinks!

  • Posted by a hidden member.
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    Sep 06, 2008 1:41 AM GMT
    "The government has formulated a plan to put troubled mortgage giants Fannie Mae and Freddie Mac under federal control, dismiss their top executives, and use government funds to prop them up, government officials told the two companies yesterday..."

    http://www.washingtonpost.com/wp-dyn/content/article/2008/09/05/AR2008090503351.html?hpid=topnews

    I cant believe that people in the banking industry didnt see that the practice of subprime mortgages to high risk people wasnt going to crash at some point.

    Somebody*, IMHO, made a lot of money early and up-front so when this all came crashing down, they had their money and were gone.

    Now we as taxpayers are going to have to pay for the money that somebody walked off with.

    Also, people who kept up with their mortgages are now going to be paying mortgages twice....their own and for others thru their taxes.



    *and I dont mean just in Fannie Mae and Freddie Mac.
  • Posted by a hidden member.
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    Sep 06, 2008 4:40 AM GMT
    Oh, come on. You're being unAmerican. This is just another expression of the way Republicans don't believe in intervening in the free market....unless they stand to lose their shirts.
  • SkyMiles

    Posts: 963

    Sep 06, 2008 4:46 AM GMT
    It stinks like McBullcrap's financial guy, Phil Gramm icon_mad.gif

    http://www.msnbc.msn.com/id/24844889

    http://thinkprogress.org/2008/05/28/mccain-adviser-phil-gramm-shaped-mccains-economic-policy-while-lobbying-for-foreign-bank/
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    Sep 06, 2008 4:50 AM GMT
    I'm equally suprised at the lack of oversight and accountability that is revealed in stories like this. But on the other hand, we can't ignore the fact that these loans originated in neighborhoods like ours all across the country. With our neighbors (some could say"friends") acting as realtors' lenders and buyers. This crisis didn't happen just in "Washington". It's just another case of greed in all it's glory.
  • Koaa2

    Posts: 1556

    Sep 06, 2008 4:53 AM GMT
    Of course they saw it coming, where has everyone been these last 8 years. All the big business executives have made millions, and now the average guy is going to have to pay for it again.
  • SkyMiles

    Posts: 963

    Sep 06, 2008 4:57 AM GMT
    explorer saidI'm equally suprised at the lack of oversight and accountability that is revealed in stories like this. But on the other hand, we can't ignore the fact that these loans originated in neighborhoods like ours all across the country. With our neighbors (some could say"friends") acting as realtors' lenders and buyers. This crisis didn't happen just in "Washington". It's just another case of greed in all it's glory.


    Absolutely! That's why regulations are essential to maintaining our economic system, capitalism can't work in chaos. There have to be rules which have to be enforced. In this case, certain people struck down those rules so that they and their clients could profit at the expense of others:

    "Gramm’s deregulation [as a senator] help set the stage for an explosion of banks slicing up subprime mortgages, bundling them with other mortgage slices, to hide the credit risks, and stelling mortgage stew to other investment firms. That gave lenders powerful incentive to make as many loans as possible, regardless of risk."