You know - when a bank buys a home-loan in a bank-to-bank deal they're expecting ot profit from it future wise. when that home is suddenly worth less than ti was before they've actually lost money on the deal and need to make it up elsewhere. (just one thing that's broken).
It's business - and F&F were just as guilty of dirty business.
A screaming comes across the sky.
It has happened before, but there is nothing to compare it to now.Pynchon - Gravity's Rainbow
Last edited by Red Crow; 08-05-11 at 05:35 PM.
Catch me if you can.
Give 5 billion to each household that makes under $60K a year. Put money back into the economy.
CORPORATE GREED AND UNION GREEDDEMOCRATS AND REPUBLICANSDESTROYING THE BEST OF AMERICA ONE DAY AT A TIME
This is the worst kind of discrimination. The kind against ME! ~ Bender
That said, the article is full of caca. From your article.
Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.
The facts of the matter.
• 1999, 09. Fannie Mae eases credit requirements for subprime loans. This was done to help low-income consumers purchase homes, and it further encouraged weak borrowers to obtain home loans.
I can provide plenty of sites to verify this.
Going further down the timeline.
• 2002. Fannie Mae and Freddie Mac start purchasing large amounts of subprime mortgages.
Economics of Crisis: The Great Contraction: Timeline of Events
From your article again....
Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion.
Yes, the amount "originated". A totally worthless thing to note. It is the part that should give us an out but isn't though. They were not the originators of these loans BUT as I noted originally and the link I provided shows, they were indeed buying up these "bad" loans.
Banks that originated fraudulent loans were supposed to be on the hook for these loans. We are not forcing them to. Why not?
The Fed bank of NY was Timmy Geithners baby and they aren't about to accept any of the blame.Give this a read if you want to understand how the meltdown happened:
Understanding the Securitization of Subprime Mortgage Credit --Federal Reserve Bank of New York
Explain to us how this is happening.Incredibly, republicans are presently trying to kill the agency tasked with correcting many of these errors.
Last edited by 1Perry; 08-05-11 at 05:56 PM.
I'm not saying that they didn't contribute to the problem, but I think that a lot of people assign them way more blame than they deserve.
Fannie, Freddie and FHLB Now Provide 90% of Home Loans
Regional Banks Will Pump Another $100 Billion into Mortgages
Fannie, Freddie and the Fed Loan $400 Billion to Financial Markets
Take the links for what they are worth and do your own research into just how deep the government guarantees were and how much govt intervention went into the home market.