Reinko

U.S. Government Is Heading for a Slippery Slope

At the moment of writing, Freddie is down 14% and Fannie was 7% down but is flat again. So upswings are not expected if today's mood prevails over the long run.

By the way, isn't it a famous American saying that 'There is no such thing as a free lunch'?

So why did they create mortgage companies like Freddie and Fannie in the first place? It is true that they made mortgages cheeper for many years but that only generates higher house prices and in the end you are not cheaper. But you have to pay the bill for all those extra cheap mortgage years.

And what about all those foreign investors who bought stuff like that (debt, stock and securities)? It looks like a bunch of fools with too much money and too little brains! Back in 2004 I already warned against this stupid business model and it is nice to observe my insights coming out in sharp detail.....