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Originally posted by sheepslayer247
reply to post by macman
It depends on the context in which Fannie/Freddie become such a problem. Was it because they were giving out bad loans, or were they sunk down by the government forcing them to buy-up bad mortgages from the corporations that would have just foreclosed on people....instead of working with them?
What's the saying: "privatize profits and socialize debt"?
Tim Geithner Covers for Corruption On Pennsylvania Avenue
Last Friday, Treasury Secretary Timothy Geithner charged in a Wall Street Journal op-ed that those who oppose the Obama Administration’s regulatory regime for the financial services industry “seem to be suffering from amnesia about how close America came to complete financial collapse under the outdated regulatory system we had before Wall Street reform.” Au contraire, Secretary Geithner, it is you who choose to ignore and misrepresent the lessons of the financial crisis by perpetuating the myth that the source of the crisis was a lack of regulation.
First, your essay glosses over the central role the federal government played in creating the crisis. In particular, the government through Fannie Mae and Freddie Mac directed $5.2 trillion (that is trillion with a “t”) of capital to increase the supply of mortgages. In addition, it passed a law that required banks to make billions of dollars in loans to individuals that were unlikely to pay off the loans, in the end with 0% down.
In 1998, Fannie Mae announced it would purchase mortgages with only 3% down. And, in 2001, it offered a program that required no down payment at all. Between 2001 and 2004, subprime mortgages grew from $160 billion to $540 billion. And between 2005 and 2007, Fannie Mae’s acquisition of mortgages with less than 10% down almost tripled. These loans are now known as “subprime” and “alt A” loans. At the time they were made, Fannie Mae and Freddie Mac encouraged their issuance by lowering their standards and buying them up from the now vilified mortgage brokers, S&Ls, banks and Wall Street investment banks.
Originally posted by TDawgRex
reply to post by Wrabbit2000
I'm damn near the point of saying...
Screw it, let's jump off the cliff already.
Maybe the house should burn down. It's ridden with termites and dry rot alraedy. We can build another after all is said and done.
And we won't have those pesky Democrats (Termites) and Republicans (Dry-rot) getting in the way.
Originally posted by cornucopia
republicans blocked universal health care, repubs block everything good for the environment...look at the voting record in the house...
repubs blocked everything good for Humanity and Mother Earth...
Truth is Truth.
President Obama and House GOP leaders promised greater efforts to step back from the partisan brink Friday, acknowledging that Washington's toxic political climate has made it increasingly tough to tackle major problems.
The pledge was immediately called into question, however, as the two parties repeatedly expressed sharply differing viewpoints during a rare meeting at a House Republican retreat in Baltimore.
Obama accepted an invitation from House GOP leaders to address their caucus. His speech Friday was followed by an often pointed question-and-answer session.