thku4grace

Fannie and Freddie Shareholders Benefit More than Homeowners

Not curtailing Fannie and Freddie fee increases may not be part of a plan to return the GSEs to viable independent entities. It could be more about not aiding the foreclosure alternative to modification of loans. I seriously doubt the GSEs will return as independent entities, if they ever were. The GSEs do provide an important service in the mortgage market but more importantly for the Obama admin, they are easily manipulated to provide certain social benefits that aren't otherwise easily accomplished. Unfortunately, that is what got us where we are today, but they will never get their cotton-pickin' hands off the GSEs. The GSEs will always be used for social engineering.

Rant Anniversary - Cramer's Mad Money (8/1/08)

Any regular watchers of CNBC havel seen this Cramer implosion at least a dozen times. I think an important fact about this video is part of what Cramer revealed. He was upset with the Fed to be sure, but it was due to the loss of jobs by many of his friends who had been working in the industry for 25 years. One should ask who his friends are who are losing their jobs? Cramer's 'friends' were working for hedge funds, and investment banks that didn't due their own due diligence before entering into what had been a very lucrative market, but one that had yet been unchallenged by the eventual defaults that would occur as these adjustable sub-prime loans adjusted upwards. Cramer's friends richly deserved to lose their jobs. They were irresponsible with other people's money. They didn't do the required due diligence and instead banked on the lucrative fees they made in the short term so as to fully capitalize on their bonuses year end. These guys should be working at McDonalds with the business acumen they show. So Cramer's anger is very, very misdirected. It should be directed at the sheer stupidity and greed his good friends had. But then this just goes to show you what a pompous, out of touch, greedy jerk he is.