whtamess

Pathetic Display at Yesterday's Financial Hearings

my comment was intended for "markhead"

Pathetic Display at Yesterday's Financial Hearings

Obviously you have not done your homework and you know NOT of what you speak. Fannie Mae met every stress test had 40 billion in capital and should not have been taken over... I can't speak for Freddie Mac. If you understand a mortage as an instrument on the financial market it performs as long as people make their payment. Due to Mark to Market accounting rules (go to FASB web site and review Fas number 157) banks and the GSE's were required to record losses when people continued to make payments. This was one huge part of the problem... when you consistantly have to take a loss when the reality is the instrument is still performing is a bunch of hooey. The gov't doesn't have to conform to this FASB rule and can make money hand over fist and it was stated by a Senator that this was a way to pay the taxpayers back on the bailout. What is good for one should be good for all. We wouldn't be in this position if that rule didn't exist. There are some financial instuments that a rule like that would be correct for however a mortgage is not one of them.