Like yours, the above report talks about the need for immediate reform, which went virtually unheeded. However, it also supports the fact that Fannie and Freddie, and therfore the government, underwrote the bubble from its very beginning. But as we see, Obama wants folks to blame Wall Street. Because Obama, after all his spending and promises, now relizes that he has faile dmiserably. So now it is no longer about fixing things, as he can't, but about blame. What a loser.Another way to look at this unconstrained growth is that during the last 15 years, the nation’s GDP doubled, the mortgage market tripled, Fannie Mae’s and Freddie Mac’s (the Enterprises) guarantees quadrupled and their portfolios grew ninefold (Chart 1).
...... Second, Fannie Mae’s and Freddie Mac’s low capital requirements and unusually low
funding costs because of their GSE status allow them to build huge mortgage asset
portfolios. Fannie Mae’s mortgage assets grew from about $124 billion in 1990 to $905
billion in 2004, and then declined to about $727 billion last year. That’s equivalent to
average annual growth of more than 13 percent over the 15-year period (Chart 4). Freddie
Mac’s mortgage portfolio grew 26 percent per annum from less than $22 billion at year-end
1990 to $710 billion in 2005. In contrast, the residential mortgage market grew at an average
rate of 8.5 percent. Absent regulatory constraints, Fannie Mae and Freddie Mac could each
increase their portfolios by well over $100 billion without exceeding the present minimum
capital rules including the 30 percent operational risk requirement that OFHEO imposed.
Last edited by Eighty Deuce; 10-06-11 at 03:07 PM.
I agree. I'm just jaded, because I have seen consistent reliable evidence that most people are able to focus on the root problems, much less identify them. All experience in life, work, DP, all suggests those will always be in the minority. Lifes hard, I don't have any easy answerThat is not to say these issues are not important, but surely the economy and welfare of the country should come first. Only then can any other issues be seriously addressed
Let me add, even if we look hard at the problem, and are smart, we can still get it wrong half the time. It's just that complicated...
I cannot read that without laughing!The American Dream has been stolen from the world. Workers are told that they aren't allowed health care, shelter, food. Students are told that they aren't allowed jobs, and that they will be in debt for the rest of their lives, unable to declare bankruptcy. The 1% has destroyed this nation and its values through their greed. The 1% has stolen this world. We will not allow this to occur.
It seems certain that they'll soon burst into song! "We are the world. We are the children".
The former no, the latter si.
There are other rewards in life, like a family and children. Good friends and neighbors. A good name with the respect of others.
There are more opportunities in life than there have ever been yet many can't see it. Like you say, they see small and trivial little pictures while the big one eludes them. I sure don't know the answers but i reckon blocking traffic isn't one of them.
Well that settles it. The Union is there so Wall Street will just give up and leave, never to come back...right.
"Hmmm...Can't decide if I want to watch "Four Houses" or give myself an Icy Hot pee hole enema..." - Blake Shelton