Fannie Mae and Freddie Mac were victims, not culprits

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cancel2 2022

Canceled
This is a must read for all those that wish to claim that Fannie Mae and Freddie Mac caused the sub prime crisis, of course they won't though because they might learn something and that would never do. Nobody is saying that they were without fault but they didn't cause the sub prime crisis, that was the likes of J.P Morgan, Lehman Bros and Goldman Sachs.


http://www.businessweek.com/investing/insights/blog/archives/2008/09/fannie_mae_and.html
 
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from one of the comments:

Fannie Mae's stock lost half its value in seven weeks and the glut of unsold properties may weigh on it further, Orenbuch said. .

Fannie Mae and Freddie Mac, the country's second-biggest mortgage finance company, together owned a record $6.9 billion of foreclosed homes on March 31, compared with $8.56 billion held by all 8,500 U.S. commercial banks and savings and loans. Foreclosed houses sell at an average discount of about 20 percent, according to economists Ethan Harris and Michelle Meyer at New York-based Lehman Brothers Holdings Inc. At that rate, the two mortgage companies stand to lose $1.39 billion on the foreclosed houses they currently own.

http://articles.chicagotribune.com/...1_fannie-mae-home-prices-decline-unsold-homes
 


Quite a whitewash, propaganda article that doesn't tell the whole story....
The politicians that demanded banks loosen mortgage requirements for
borrowers...the politicians called banks that wouldn't lower
the requirements 'racist banks' .... for not
lending to minorities that didn't qualify....and when the rules were changed,
they were changed for everyone, not just minorities....
AIG was sucking up those toxic asset mortgages and down it went....
but that wasn't the worst of the cratering economy....
When warnings about the danger Freddie and Fannie was in, those warnings were
were ignored, again by the politicians...and they too collapsed...
collapsed for their own reasons but that added to the overall downfall of the
economy as a whole.....The blame starts in Washington, warnings were ignored in Washington, and Washington politicans told the public over and over there was no danger, Freddie
and Fannie were just fine, no problems....


The spinners will be out there rewriting history for years to come, hoping to protect the asses of their favorite party politicians
and there are always those that will buy the story of their choice for the very same reason.
 
bravo said:


Quite a whitewash, propaganda article that doesn't tell the whole story....
The politicians that demanded banks loosen mortgage requirements for
borrowers...the politicians called banks that wouldn't lower
the requirements 'racist banks' .... for not
lending to minorities that didn't qualify....and when the rules were changed,
they were changed for everyone, not just minorities....
AIG was sucking up those toxic asset mortgages and down it went....
but that wasn't the worst of the cratering economy....
When warnings about the danger Freddie and Fannie was in, those warnings were
were ignored, again by the politicians...and they too collapsed...
collapsed for their own reasons but that added to the overall downfall of the
economy as a whole.....The blame starts in Washington, warnings were ignored in Washington, and Washington politicans told the public over and over there was no danger, Freddie
and Fannie were just fine, no problems....


The spinners will be out there rewriting history for years to come, hoping to protect the asses of their favorite party politicians
and there are always those that will buy the story of their choice for the very same reason.
Click to expand...

Two points, that article was written in 2008 and Business Week is not known for spinning and propaganda. They are not blameless, but the real instigators of the sub prime crisis are the likes of J.P. Morgan, Lehman Brothers and Goldman Sachs and the credit rating agencies.
 
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Aoxomoxoa said:
This is a must read for all those that wish to claim that Fannie Mae and Freddie Mac caused the sub prime crisis, of course they won't though because they might learn something and that would never do. Nobody is saying that they were without fault but they didn't cause the sub prime crisis, that was the likes of J.P Morgan, Lehman Bros and Goldman Sachs.


http://www.businessweek.com/investing/insights/blog/archives/2008/09/fannie_mae_and.html
Click to expand...

The sub-prime crisis was caused by republicans who voted to deregulate the financial industry.
 
dixon76710 said:
Article is a joke. Fannie and freddie didnt originate ANY loans
Click to expand...

Providing Liquidity and Affordability to the Housing Market
Fannie Mae is working to help the U.S. housing market get back on stable ground. We do this by replenishing the funds that lenders need to make new loans, refinance existing loans, and finance multifamily housing at affordable rates. During the housing crisis, many mortgage investors left the market or scaled back their activity. We remain committed to providing liquidity and stability to the housing market in all economic conditions.

http://www.fanniemae.com/portal/funding-the-market/marketplace-liquidity.html

Fannie mays job is to keep the housing prices falsely inflated. Once a majority of people depend on these inflated prices, "the big lie" becomes convenient for a majority of people, then they begin supporting banker fascism and irrationality.
 
AssHatZombie said:
Repeal of the glass steagall act, which allowed banks to use mortgages as poker chips in their reindeer games.
Click to expand...

?????Regulations that never applied to Fannie and Freddie, the LARGEST creators of these poker chips. Regulations that never applied to companies such as Countrywide, the largest originators of the mortgages used to create these poker chips. That deregulation simply shifted some of the crisis that would have been primarily in investment banks, into the retail banks as well. FDIC has been more than sufficient to cover any losses by depositers.
 
dixon76710 said:
?????Regulations that never applied to Fannie and Freddie, the LARGEST creators of these poker chips. Regulations that never applied to companies such as Countrywide, the largest originators of the mortgages used to create these poker chips. That deregulation simply shifted some of the crisis that would have been primarily in investment banks, into the retail banks as well. FDIC has been more than sufficient to cover any losses by depositers.
Click to expand...

You were asking about which regulations republicans voted to eliminate. Elimination of those restrictions ALLOWED THE CATASTROPHE IN THE FIRST PLACE, you douche. And FDIC is not fixing the entire economy that they destroyed.
 
AssHatZombie said:
You were asking about which regulations republicans voted to eliminate. Elimination of those restrictions ALLOWED THE CATASTROPHE IN THE FIRST PLACE, you douche. And FDIC is not fixing the entire economy that they destroyed.
Click to expand...

Nope, nothing in Glass Steagal would have prevented this. Nothing in Glass Steagel prohibited securitzation of mortgages or credit default swaps. Youve simply heard it claimed so many times, it has become a fact for you.
 
Bravo post your link. I read business news like a crack addict looks for rocks. I remember congressman fighting against discrimination not for better treatment. Finish mopping at Walmart then post.
 
dixon76710 said:
Nope, nothing in Glass Steagal would have prevented this. Nothing in Glass Steagel prohibited securitzation of mortgages or credit default swaps. Youve simply heard it claimed so many times, it has become a fact for you.
Click to expand...

wrong, turdmunch.

http://en.wikipedia.org/wiki/Glass–Steagall_Act


The repeal of provisions of the Glass–Steagall Act by the Gramm–Leach–Bliley Act in 1999 effectively removed the separation that previously existed between investment banking which issued securities and commercial banks which accepted deposits. The deregulation also removed conflict of interest prohibitions between investment bankers serving as officers of commercial banks. This repeal directly contributed to the severity of the Financial crisis of 2007–2011 by allowing Wall Street investment banking firms to gamble with their depositors' money that was held in the commercial banks[4][5][6][7][8][9]
 
bravo said:


Quite a whitewash, propaganda article that doesn't tell the whole story....
The politicians that demanded banks loosen mortgage requirements for
borrowers...the politicians called banks that wouldn't lower
the requirements 'racist banks' .... for not
lending to minorities that didn't qualify....and when the rules were changed,
they were changed for everyone, not just minorities....
AIG was sucking up those toxic asset mortgages and down it went....
but that wasn't the worst of the cratering economy....
When warnings about the danger Freddie and Fannie was in, those warnings were
were ignored, again by the politicians...and they too collapsed...
collapsed for their own reasons but that added to the overall downfall of the
economy as a whole.....The blame starts in Washington, warnings were ignored in Washington, and Washington politicans told the public over and over there was no danger, Freddie
and Fannie were just fine, no problems....

The spinners will be out there rewriting history for years to come, hoping to protect the asses of their favorite party politicians
and there are always those that will buy the story of their choice for the very same reason.
Click to expand...

Looks to me like you're the one spinning. If only those damned minorities didn't want a piece of the American dream...</sarcasm>
 
AssHatZombie said:
wrong, turdmunch.

http://en.wikipedia.org/wiki/Glass–Steagall_Act


The repeal of provisions of the Glass–Steagall Act by the Gramm–Leach–Bliley Act in 1999 effectively removed the separation that previously existed between investment banking which issued securities and commercial banks which accepted deposits. The deregulation also removed conflict of interest prohibitions between investment bankers serving as officers of commercial banks. This repeal directly contributed to the severity of the Financial crisis of 2007–2011 by allowing Wall Street investment banking firms to gamble with their depositors' money that was held in the commercial banks[4][5][6][7][8][9]
Click to expand...

Thats nonsense. Bear Stearns, Lehman Brothers, Merrill Lynch, Goldman Sachs and Morgan Stanley, most of the biggest players, were solely investment banks before the crisis and uneffected by the repeal of the act.
 
bravo said:


Quite a whitewash, propaganda article that doesn't tell the whole story....
The politicians that demanded banks loosen mortgage requirements for
borrowers...the politicians called banks that wouldn't lower
the requirements 'racist banks' .... for not
lending to minorities that didn't qualify....and when the rules were changed,
they were changed for everyone, not just minorities....
AIG was sucking up those toxic asset mortgages and down it went....
but that wasn't the worst of the cratering economy....
When warnings about the danger Freddie and Fannie was in, those warnings were
were ignored, again by the politicians...and they too collapsed...
collapsed for their own reasons but that added to the overall downfall of the
economy as a whole.....The blame starts in Washington, warnings were ignored in Washington, and Washington politicans told the public over and over there was no danger, Freddie
and Fannie were just fine, no problems....


The spinners will be out there rewriting history for years to come, hoping to protect the asses of their favorite party politicians
and there are always those that will buy the story of their choice for the very same reason.
Click to expand...

Yea, HERE are the 'warnings' from Washington...

Bush's 'ownership society'

"America is a stronger country every single time a family moves into a home of their own," George W. Bush said in October 2004. To achieve his vision, Bush pushed new policies encouraging homeownership, like the "zero-down-payment initiative," which was much as it sounds—a government-sponsored program that allowed people to get mortgages without a down payment. More exotic mortgages followed, including ones with no monthly payments for the first two years. Other mortgages required no documentation other than the say-so of the borrower. Absurd though these all were, they paled in comparison to the financial innovations that grew out of the mortgages—derivatives built on other derivatives, packaged and repackaged until no one could identify what they contained and how much they were, in fact, worth.

As we know by now, these instruments have brought the global financial system, improbably, to the brink of collapse.

End of the ‘Ownership Society’
 
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