GSH1976

What Kind of Government Support Will Fannie and Freddie Get?

Mr. DeLong I have a question for you. In 1Q08 FNM and FRE guaranteed 81% of mortgage securities in the US which was an increase of almost 100% compared to that of a year earlier when the subprime liquidity/credit crunch started. Did they acquire toxic RMBS from investment banks and hedge funds that were deleveraging? If so, at what prices?

What Kind of Government Support Will Fannie and Freddie Get?

Many here have already done an excellent job attacking your thesis on the viability of FNM and FRE so I will address something else.

You gave kudos to Paulson, Bernanke, Dodd and Frank. Are you serious? Dodd and Frank are nothing but puppets for the Wall Street elite. Bernanke and Paulson have done a fantastic job at making things worse. Instead of recognizing the systemic problems and taking the needed medicine they have made countless attempts to defer the inevitable which will only serve to make the end result that much worse. I must also point out the ridiculous statements made by Paulson and Bernanke who have repeatedly downplayed this entire mess. Bernanke was stating subprime was not a big deal and contained two years ago while Paulson has called a bottom in housing at least 14 times (that I have documented in articles) beginning in early 2006.

You wouldn't by chance have any conflicts of interest when it comes to this matter?