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Thread: Fannie and Freddie tab is $146B and rising

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    Fannie and Freddie tab is $146B and rising

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    Fannie and Freddie tab is $146B and rising - STLtoday.com

    Quote(Fannie Mae and Freddie Mac took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March, a virtual city with more houses than Seattle. The mortgage finance companies, created by Congress to help Americans buy homes, have become two of the nation’s largest landlords.)

    Congress should never have created these two monstrosities.

    Quote(Bill Bridwell, a real estate agent in the desert south of Phoenix, is among the thousands of agents hired nationwide by the companies to sell those foreclosures, recouping some of the money that borrowers failed to repay. In a good week, he sells 20 homes and Fannie sends another 20 listings his way.

    “We’re all working for the government now,” said Bridwell on a recent sun-baked morning, steering a Hummer through subdivisions laid out like circuit boards on the desert floor.

    For all the focus on the historic federal rescue of the banking industry, it is the government’s decision to seize Fannie Mae and Freddie Mac in September 2008 that is likely to cost taxpayers the most money. So far the tab stands at $145.9 billion, and it grows with every foreclosure of a three-bedroom home with a two-car garage one hour from Phoenix. The Congressional Budget Office has predicted that the final bill could reach $389 billion.)

    So yet more money has to found from somewhere to rescue these monolithic entities.

    And NO I AM NOT GOING TO BLAME OBAMA for this particular mess, in fact I am 100% certain that he had absolutely nothing to do with the way these two were handing out Mortgages as though it were candy.
    This mess was started By Bill Clinton and his administration.

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    Re: Fannie and Freddie tab is $146B and rising

    Quote Originally Posted by jujuman13 View Post
    This mess was started By Bill Clinton and his administration.
    No, this mess was created by GWB and Warren Greenspan. They created the housing boom and bubble. They tried to use the housing sector to pull us out of the recession of '01. Had interest rates remained at normal levels and lending restrictions not relaxed, the refinancing, home building and lending frenzy would never have happened.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Fannie and Freddie tab is $146B and rising

    It was me. This one was my fault.

    Sorry dudes, my bad. I was just tryin' to help.
    He touched her over her bra and underpants, she says, and guided her hand to touch him over his underwear
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    We’ll say what? Something like “nothing happened” ... Yeah, we might say something like that.

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    Re: Fannie and Freddie tab is $146B and rising

    Quote Originally Posted by USA-1 View Post
    No, this mess was created by GWB and Warren Greenspan. They created the housing boom and bubble. They tried to use the housing sector to pull us out of the recession of '01. Had interest rates remained at normal levels and lending restrictions not relaxed, the refinancing, home building and lending frenzy would never have happened.


    No presidential administration forced people to obtain home loans that they could not pay back.
    No American President ordered private financial institutions to give sub-prime loans to people who couldn't afford them.

    Loan officers, not American Presidents, have the responsibility of checking the financial backgrounds of loan applicants. Loan officers, not American Presidents, have the responsibility of either approving or rejection loan applications.

    You might believe that a particular American President is Scapegoat-in-Chief, but I do not.

    One complaint that I have about my fellow Americans is that they are too quick to blame the President for things that the President has no control over.
    The height of wisdom is to say, "I do not know." -Socrates

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    Re: Fannie and Freddie tab is $146B and rising

    THE HOUSING BUBBLE COULD NOT HAVE OCCURRED WITHOUT RECORD LOW INTEREST RATES AND RELAXED LENDING REQUIREMENTS. Hell, George even eliminated down payments. The president did have control over housing. He tried to make this an ownership society.

    You can remain in denial. but the truth is the truth:
    http://www.youtube.com/watch?v=kNqQx7sjoS8
    Last edited by USA_1; 06-20-10 at 11:05 PM.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Fannie and Freddie tab is $146B and rising

    Quote Originally Posted by Goyboy View Post


    No presidential administration forced people to obtain home loans that they could not pay back.
    No American President ordered private financial institutions to give sub-prime loans to people who couldn't afford them.

    Loan officers, not American Presidents, have the responsibility of checking the financial backgrounds of loan applicants. Loan officers, not American Presidents, have the responsibility of either approving or rejection loan applications.

    You might believe that a particular American President is Scapegoat-in-Chief, but I do not.

    One complaint that I have about my fellow Americans is that they are too quick to blame the President for things that the President has no control over.
    Quote Originally Posted by USA-1 View Post
    THE HOUSING BUBBLE COULD NOT HAVE OCCURRED WITHOUT RECORD LOW INTEREST RATES AND RELAXED LENDING REQUIREMENTS. Hell, George even eliminated down payments. The president did have control over housing. He tried to make this an ownership society.

    You can remain in denial. but the truth is the truth:
    YouTube - Home Ownership and President Bush
    Both are correct to some degree

    The housing bubble would not have taken place without both things occuring

    Greenspan and Bush creating the economic environment that encouraged the housing bubble to form, which would not have happened if the public at large did not take take advantage of the environment that was created by Greenspan and the Bush admin
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    Re: Fannie and Freddie tab is $146B and rising

    Quote Originally Posted by USA-1 View Post
    THE HOUSING BUBBLE COULD NOT HAVE OCCURRED WITHOUT RECORD LOW INTEREST RATES AND RELAXED LENDING REQUIREMENTS. Hell, George even eliminated down payments. The president did have control over housing. He tried to make this an ownership society.

    You can remain in denial. but the truth is the truth:
    YouTube - Home Ownership and President Bush
    Business Week - Bill Clinton's drive to increase homeownership went way too far.

    Add President Clinton to the long list of people who deserve a share of the blame for the housing bubble and bust. A recently re-exposed document shows that his administration went to ridiculous lengths to increase the national homeownership rate. It promoted paper-thin downpayments and pushed for ways to get lenders to give mortgage loans to first-time buyers with shaky financing and incomes. It’s clear now that the erosion of lending standards pushed prices up by increasing demand, and later led to waves of defaults by people who never should have bought a home in the first place.

    President Bush continued the practices because they dovetailed with his Ownership Society goals, and of course Congress was strongly behind the push. But Clinton and his administration must shoulder some of the blame.
    This cannot be placed on the shoulders of any one President, no matter how much you all would like to try.

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    Re: Fannie and Freddie tab is $146B and rising

    The bubble didn't start until after 9/11 when interest rates were set at record low levels, and Bush used the housing sector to save the economy from the recession.. Working in the housing industry I could see it while it was happening. I can not believe no one else could.
    Without the low interest and Bushes push for more home ownership the residential construction boom would have never happened. Home buying would have remained at normal levels. Prices would not have skyrocketed scaring even more people to buy before they couldn't afford it.
    The housing boom and bubble happened after GWB took office. Instead of heading warnings about the bubble he made it worse.

    Sorry, but Bush is totally responsible for the economic collapse. Clinton had been gone for eight years.
    It was Bush that eliminated down payments. Not Clinton.
    http://www.usatoday.com/money/perfi/...1-20-fha_x.htm
    In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans
    Last edited by USA_1; 06-21-10 at 05:36 PM.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Fannie and Freddie tab is $146B and rising

    Quote Originally Posted by NolaMan View Post
    Business Week - Bill Clinton's drive to increase homeownership went way too far.



    This cannot be placed on the shoulders of any one President, no matter how much you all would like to try.


    This chart shows what obscenely low interest rates and Bush's attempt to increase home ownership will do. It is proof that the mess was created on his watch. HE IS RESPONSIBLE FOR DESTROYING OUR GREAT COUNTRY.
    Last edited by USA_1; 06-21-10 at 06:12 PM.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Fannie and Freddie tab is $146B and rising

    Quote Originally Posted by USA-1 View Post


    This chart shows what obscenely low interest rates and Bush's attempt to increase home ownership will do. It is proof that the mess was created on his watch. HE IS RESPONSIBLE FOR DESTROYING OUR GREAT COUNTRY.
    Obscenely low interest rates are not a creation of the Bush administration however. Here is a NYT article from 1999 outlining how Fannie Mae was easing credit requirements to give more risky loans.

    The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

    Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
    I am not here to say "this was Clinton's fault" or "this was Bush's fault", the fact is it was a long process that both parties pushed, and we all now know the outcome.

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