icandoitdon

Fannie Mae Needs $1.7 Billion in New Treasury Capital

the imbicile who wrote this has to be in the housing or mortgage lending business. a young, dumb (but college educated), without a pot to piss in up and comer who is no doubt in hock up to his neck himself.

the dramatic escalation in credit availability is little more than 30 years old in this country. the insane, no money down and no-doc mortgage scams pushed by everyone from financial institutions to congress iteself occurred only during the last 10-15 years. asset securitization barely existed 20 years ago. derivitives trading, created by wall street and for wall street, also about 20 years old, has become a crucial part of the profit model of every "too big to fail" financial institution...without which they'd close up shop and go home because the "services" these wall street firms provide don't serve the public...they serve only each other.

i don't give a damn if goldman sucks makes 100 billion a year speculating with its own capital. but the first time the u.s. government had to step in and back their debt and inject capital is where it should all stop. they will now and ALWAYS operate under implicit taxpayer protection. regulation will never work when the regulators are in bed with the offenders. that firm and everyone like it should be shuttered.


go figure.


On Aug 07 08:39 PM Leonard C. Tekaat wrote:

> Lately there has been some very disturbing news about Fannie Mae
> and Freddie Mac. The economy needs Fannie and Freddie. Without them
> we would not have a mortgage market. Banks and financial institutions
> sell their mortgages to them. The economy needs the housing market
> because this is how credit is supplied to small business and consumers.
> Without collateral banks will not and cannot loan money. If the price
> is going down the equity is continually decreasing.
> It has been reported, that 50 to 90 percent of housing is underwater
> with their mortgages. This means that there is no collateral to
> secure a loan. Credit is our primary means of exchange. Without
> credit money, exchanges of goods and services can not take place.
> There is not enough paper money in our economy to facilitate all
> the transactions that must take place. Economic activity is reduced;
> unemployment increases. For the economy to fully recover housing
> prices must be stabilized quickly or we will have a major problem
> on our hands. I have posted solutions to the problem on my web site
> economysflaw.wordpress...