Re: U.S. to Lose $400 Billion on Fannie and Freddie

On 1/4/2010 3:42 PM, Beam Me Up Scotty wrote:
> On 1/4/2010 3:28 PM, US_Army_Nutcase wrote:
>> On Jan 4, 8:41 am, Beam Me Up Scotty > dog.com> wrote:
>>> On 1/3/2010 9:45 PM, Sid9 wrote:
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>> “vict0r” wrote in message
>>>> news:nrb0n.1374$er1.615 @&*$?%en-nntp-07.dc1.easynews.com…
>>>>> U.S. to Lose $400 Billion on Fannie, Freddie, Wallison Says
>>>
>>>>> Dec. 31, 2009
>>>
>>>>> Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400
>>>>> billion, according to Peter Wallison, a former general counsel at the
>>>>> Treasury who is now a fellow at the American Enterprise Institute.
>>>
>>>>> “The situation is they are losing gobs of money, up to $400 billion in
>>>>> mortgages,” Wallison said in a Bloomberg Television interview. The
>>>>> Treasury
>>>>> Department recognized last week that losses will be more than $400
>>>>> billion
>>>>> when it raised its limit on federal support for the two
>>>>> government-sponsored
>>>>> enterprises, he said.
>>>
>>>>> http://www.bloomberg.com/apps/news?pid=20601087&sid=a2Z5GnTAPcuo
>>>
>>>>> —
>>>
>>>>> Fannie Mae Eases Credit To Aid Mortgage Lending
>>>
>>>>> September 30, 1999
>>>
>>>>> WASHINGTON, Sept. 29- In a move that could help increase home ownership
>>>>> rates among minorities and low-income consumers, the Fannie Mae
>>>>> Corporation
>>>>> is easing the credit requirements on loans that it will purchase from
>>>>> banks
>>>>> and other lenders.
>>>
>>>>> The action, which will begin as a pilot program involving 24 banks in 15
>>>>> markets — including the New York metropolitan region — will encourage
>>>>> those banks to extend home mortgages to individuals whose credit is
>>>>> generally not good enough to qualify for conventional loans. Fannie Mae
>>>>> officials say they hope to make it a nationwide program by next spring.
>>>
>>>>> http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to…
>>>
>>>>> —
>>>
>>>>> Rahm Emanuel‘s profitable stint at mortgage giant
>>>
>>>>> Short Freddie Mac stay made him at least $320,000
>>>
>>>>> Before its portfolio of bad loans helped trigger the current housing
>>>>> crisis,
>>>>> mortgage giant Freddie Mac was the focus of a major accounting scandal
>>>>> that
>>>>> led to a management shake-up, huge fines and scalding condemnation of
>>>>> passive directors by a top federal regulator.
>>>
>>>>> One of those allegedly asleep-at-the-switch board members was
>>>>> Chicago’s Rahm
>>>>> Emanuel-now chief of staff to President Barack Obama-who made at least
>>>>> $320,000 for a 14-month stint at Freddie Mac that required little effort.
>>>
>>>>> http://www.chicagotribune.com/news/politics/obama/chi-rahm-emanuel-pr…
>>>
>>>> .
>>>> .
>>>> A trillion in Iraq in an unnecessary war.
>>>
>>> For all the Democrat Liberal Socialist Liars that say Bush attacked Iraq
>>> and there were no terrorists in Iraq……
>>>
>>> http://www.youtube.com/watch?v=9JE48XHKG64
>>>
>>>> Had there been no Iraq war there might not have been the housing
>>>> collapse….it all goes back to incompetent Republicans running our
>>>> government
>>>
>>> Housing collapse was the private markets, they were coerced by
>>> government to give out bad loans.
>>>
>>> Congress *is* the economic Problem.- Hide quoted text -
>>>
>>> – Show quoted text -
>>
>> Coerced? Apparently you have a comprehension problem. Oh, that’s
>> right, comprehension, or lack thereof, is a common ailment of f&*$?%g
>> retards. Fannie and Freddi eased credit requirements on loans they
>> would BUY from lenders. In other words, ignorant buffoon, they made
>> the lenders’ lives EASIER by buying the s&*$?%y assed loans those
>> lenders made. Does that sound like “coercion” to you, silly little
>> dipshit?
>
> http://www.youtube.com/watch?v=Lr1M1T2Y314
>
>
> The above link tells you how they were coerced, Fanny and Freddy are
> “GSE” Government Spcocered Entities and buy and sell over 50% of all
> home loans in the USA…. Once fanny and Freddy were “asked” to ease
> credit requirements then what did the Banks have to lose since they were
> selling the loans to Fanny and Freddy(Government entities). So the banks
> had two reasons to make bad loans. One reason was *they didn’t* *want*
> *the Government suing them* , and they could unload those bad loans back
> to the “government Fanny&Freddy” buyers and not take very much risk, so
> they hoped.
>
> The whole thing was created by our GOVERNMENT.

Basically the government was Kiting a check….. the bad loans were
expected to be passed on to investments that would have enough diversity
to write the bad loans off. The problem came when the people buying
Fanny and Freddy investment vehicles found that they were buying too
many bad loans because Freddy and Fanny had lowered the credit standards
too low.

When Fanny had no one buying their investments they ran out of new
Capital to buy new mortgages from banks and the markets froze. With the
Markets frozen, Fanny and Freddy were stuck with a lot of bad loans they
had bought and couldn’t sell…. Basically they finally got caught
with their pants down.

It was a PONZI scheme and Maddoff went to jail for a similar business
plan. Eventually the scam ran out of suckers to buy the Fanny and
Freddy, “sucker” packaged mortgages.

What was also bad was the Banks also got caught with bad mortgages as
fanny and Freddy quit buying their affordable housing mortgages.

–

*BE VERY CONCERNED*

Sometimes you eat the bear, sometimes the bear eats you.