What should they do with Freddie and Fannie?

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Nationalize them?
Keep the same buisiness model?
Keep them semi private and re regulate them?
Sell them off to private banks and end the backing of Mrtg loans?
 
Break them up into at least regional areas so any one area going down will not be too big to fail or not cost as much to bail out. Especially since the housing market is clearly regional in impact.

and closely monitor them.
 
Sell them off to private banks and end the backing of Mrtg loans.

That's my opinion, anyway. When the private bank is responsible for the consequences of default, they are a little more prudent in allowing the loans. When government guarantees the loans, and there is no risk to the bank, they have no inclination to be prudent.

Freddy and Fanny hit hard times because of liberal politics. In an attempt to make it easier for the 'poor working man' to buy a home, they set up a system with no responsibility on part of the financial institutions, and they failed. It all looked good on paper, it all felt good to liberals, but in reality it was another piss poor liberal idea that failed.
 
uscitizen said:
And bear stearns, etc failing means nothing Dixie ?
Sort of seems to undermine you logic.
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Not really, bear-stearns, like lehman, is tied to freddy and fanny, and they are all tied to the housing bubble burst. The problems are all inter-related, and it all boils down to the feds being involved where they shouldn't be. Let the private sector handle private sector affairs, and capitalism works.

But here is the bigger problem, we don't produce anything. American economy has become more and more based on markets and stocks. This makes our economy vulnerable to financial disasters, which is what is happening now.
 
Dixie said:
Sell them off to private banks and end the backing of Mrtg loans.

That's my opinion, anyway. When the private bank is responsible for the consequences of default, they are a little more prudent in allowing the loans. When government guarantees the loans, and there is no risk to the bank, they have no inclination to be prudent.

Freddy and Fanny hit hard times because of liberal politics. In an attempt to make it easier for the 'poor working man' to buy a home, they set up a system with no responsibility on part of the financial institutions, and they failed. It all looked good on paper, it all felt good to liberals, but in reality it was another piss poor liberal idea that failed.
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Before freddie and fanny, five year mortages were the norm. You would be homeless Dixie.
 
They should sell them off as quickly as possible. The government should not be in business in this way.
 
uscitizen said:
yeah dixie would love 30% down and 15% interest rate.
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As I said Damo.

I pretty much agree, but talk about keeping the housing market down. But then growth might be genuine, instead of credit feeding credit type of fake growth.


any home purchase help from the govt should be outside of the mortgage.
 
uscitizen said:
As I said Damo.

I pretty much agree, but talk about keeping the housing market down. But then growth might be genuine, instead of credit feeding credit type of fake growth.


any home purchase help from the govt should be outside of the mortgage.
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I'd prefer the headache after the insane drink fest to continued drinking and letting our liver fail.

Wow, I didn't realize I was stuck in analogy mode so heavily lately.

Basically I'd rather go through pain now and have a strong housing market that will last than have the government totally take control and ensure we only have the most messed up market ever.
 
Damocles said:
I'd prefer the headache after the insane drink fest to continued drinking and letting our liver fail.

Wow, I didn't realize I was stuck in analogy mode so heavily lately.

Basically I'd rather go through pain now and have a strong housing market that will last than have the government totally take control and ensure we only have the most messed up market ever.
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Yep pay now instead of later when it will be even worse.
all debts must be paid and the longer you wait the more you pay.

but we just keep stacking more credit after more credit and when must be paid we will likely go bankrupt as a country if we wait too long.
 
Damocles said:
I'd prefer the headache after the insane drink fest to continued drinking and letting our liver fail.

Wow, I didn't realize I was stuck in analogy mode so heavily lately.

Basically I'd rather go through pain now and have a strong housing market that will last than have the government totally take control and ensure we only have the most messed up market ever.
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No, we will return to a terrible fucked up pre-30's situation and only the rich will be able to afford house. Damo got his economics degree out of a cracker jack box.
 
Any way we go we are going to pay for this. The ones that profited the most from the buildup to the collapse it will pay the least.
 
I would say--hey--you fucked up--half the nation gets a free home, and let the real free market compete from here on out.

Any assets left, go to the free market mortage companies, and any liabilities comes out of congresses personal pocket books.

How about some accoutability?
 
theMAJORITY said:
I would say--hey--you fucked up--half the nation gets a free home, and let the real free market compete from here on out.

Any assets left, go to the free market mortage companies, and any liabilities comes out of congresses personal pocket books.

How about some accoutability?
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Idiot.
 
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