Fannie Mae and Freddie Mac

[Gunfixr]

The Treasury announced today that they are planning to take over Fannie Mae and Freddie Mac.

It was on CNN Breaking News this morning.

I guess it's getting started.

[FISTER]

The Treasury announced today that they are planning to take over Fannie Mae and Freddie Mac.

It was on CNN Breaking News this morning.

I guess it's getting started.

I was in the finance industry before the military ..... The government already had a rather large say in the Fannie / Freddie guidlines. And for the most part Fannie / Freddie type mortgages arent the real issue in the mortgage industry woes. For these type of loans you had to have the credentials to meet the criteria. Its the Subprime amriquest type mortgages that are causing all the problems now. And to be honest I blame the consumers not the industry. Nothing really changed in the industry aside from the marketing.

Here is my basic breakdown from by veiw as an insider.
Home values went up due to a good economy , so now people that owed 80% of their house value might only owe 50%. In theory thats great however the early new millenium mind set was spend now worry later. So you had people by the boatload cashing in their equity. You bought your house for 200k , two years later its worth 300k but you still only owe 200k ........... so whats the logic? Get a new mortgage for 300k and take the 100k cash! This was a great help for some people ; it allowed them to pay off high intrest credit cards , car loans ect. But here is where every thing went wrong ....... consumers were getting the cash but not paying stuff off. Why pay off bills when you have gobs of cash to play with!
And so here we are now in 2008 you still have the credit cards and car loans ..... the 100k is gone ..... and your mortgage payment went up 33%.
Dont get me wrong this isnt what happened in every single case , but I would have to say it is in the majority.

[moonlit]

What I read is everything is GOOD NOW. No need to PREP, We're out of the woods. Money will loosen up, interest rates are suppose to drop in a few weeks, It is all FIXED. False alarm guys & gals. Boy, I'm glad we are over these troubling times. I thought we were in real trouble for sure. But Uncle Sam came to the rescue again & we are all safe now. Thank God & Uncle Sam.

[Dentoro]

What I read is everything is GOOD NOW. No need to PREP, We're out of the woods. Money will loosen up, interest rates are suppose to drop in a few weeks, It is all FIXED. False alarm guys & gals. Boy, I'm glad we are over these troubling times. I thought we were in real trouble for sure. But Uncle Sam came to the rescue again & we are all safe now. Thank God & Uncle Sam.

I swear, if I didn’t know better I’d detected some sarcasm in there somewhere!

[moonlit]

I swear, if I didn’t know better I’d detected some sarcasm in there somewhere!

NOT ME. Heavens. I just couldn't resist. I'm still learning who on this site is really awake.

Craig

[Imaginos]

Last I heard Uncle Sugar just added somthing over a Trillion bucks to the national debt rather than let the big money take it in the ass where they deserve it. they gleefully handed over the future of my children's great grandchildren's grandchildren in order to keep things civil through January.

The only problem I see is its just more smoke and mirrors that allows their predatory financiers to strip mine America some more.

[Dentoro]

1 trillion would be a blessing compared to the 5 billion I've been hearing. Good thing is the dollar didn't plumit yet, might be hope ye...........BWAAAHAAAAA.....I was almost there!


I believe we have reached the end of clif.....we have to face the lions or jump in my opionion this can only be badnews....we all know how well government manages money, "good thing for the taxpayers, we may actually make some money"......MY A$$!

[midtennchip]

Read the article below for some good insight into the thought process of the takeover. The interesting thing about this (and I'm a Republican, btw) is the way the administration could (1) prop up Fannie and Freddie with FOREIGN MONEY, (2) weed out some at-risk banks to prop up the other banks, 3) ease commodity prices, and 4) do it all without "printing more money." For me, this idea of continually selling (and we've been on this track for a LONG time) our country to FOREIGN INTERESTS is the real problem. The real SHTF event may be happening right under our noses without anyone complaining. That is, we are giving our country away one debt-instrument at a time.

http://articles.moneycentral.msn.com/Investing/SuperModels/IsMarketFixTomorrowsCrisis.aspx

[insight]

The thing is, all of this has happened by design, by the Republicans.

In 1999, Phil Gramm sponsored this bill:
http://www.govtrack.us/congress/billtext.xpd?bill=s106-900

It completely deregulated the Banking/Mortgage industry. The Democrats tried to stop it by voting "Nay", but still, Clinton signed it into law.

Now? Gramm is McCains Chief Economic Advisor. No Thanks, I can't handle much of this mans expertise.
http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.html
http://www.massaflcio.org/printable/node/31541