Velshan

Fannie and Freddie Did Not Cause This Crisis

I notice many comments are totally out of touch with reallity.
The problem of Fannie was not that they lend to people who could not afford a mortgage.
The real problem is that Fannie borrowed very large sums of money on which it promised good returns but now cannot perform because Housing prices are collapsing.
Such borrowing was done by everyone in Mortgage business and all of them are in trouble now.
The most important question to ask is who arranged all this billion dollar funding. The answer is clearly the Federal Reserve, Treasury and its afflated Banks which continued to take in large Foreign money from various countries and the corrupted leaders of those countries.
It is very clear that the above instiutions needed to keep this money away from the respective Foreign Governments ($300 Billion from Russia, $1.5 Trillion from China, $600 Billion from Arab etc).
That Geo-political requirement needed America to have some place to invest in. But the growth in foreign economy was so fast that American Industries could not take on more investments. that was the reason for creating suddenly assistance for poor Americans to purchase Homes. Democratic fools were simply used by these American Financial elite. That is also the reason why they cannot afford to have people like the Maverick McCain become President and MAYBE default on Fannie or Freddie.
The most important question is, So why not let Fannie collapse and make all these foreign depositors go Bankrupt.
Why Paulson added word in the Bailout Bill to also guarantee foreign Banks who purchased Fannie's mortgages?
Why no media or political parties bring out this question?
The answer to these questions will show you the real reason for Fannie's problems.
But the answer will also expose America's economic tricks and strategies and also its weaknesses.
A HINT : That foreign money is actually equal to American "Investment" in all those countries. The American Financial wizards need China and Russia to release their currency to be floated on money markets. But they failed to achieve that. The American Financial crisis is the result.
GAME OVER.