Posted by: bj | October 11, 2009

Fanny and Freddie – DOING IT AGAIN ?

Gee,  thank you Nancy Pelosi, Barney Frank and Chuck Schumer.  Now you want Freddie Mack and Fanny Mae, who were the major culprits in the 2008 – 09   mortgage meltdown to do it again.  This is incredible. 

You forced the banks to make loans to those that could not afford them; you got Freddie and Fannie to guarantee them.  They went bankrupt when the borrowers could not repay the loans.  We, the tax payers,  then covered all your  (Government)  obligations.

Now you want to help the small mortgage lenders by guaranteeing their short term debt, because you have already saved  the big mortgage lenders, who have 50% of the market.  THIS   IS  A  NOBLE   EFFORT, But  these lenders will be loaning money long term and  borrowing money  short term,  which is a prescription for another disaster, which the tax payers will pay for.  If you want to do a favor for the small mortgage companies, make them long term loans,  and do not guarantee their short term loans; and then buy their loans.  The home prices should be so low, you will not loose any of our $ as long as the loans are 70% to 80% of value or price.

Get out of the way,  and quit buying votes,  and let, the markets function  without any artificial intervention,  and  THE ECONOMY WILL  TAKE OFF BY ITSELF.

http://online.wsj.com/article/SB10001424052748703746604574460903449028672.html

 

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