madasiwannabe

So the Perpetrators Are Now Our Saviors?

Thank you. It's about time someone pointed out how the GSE's got into trouble. It actually started with lawsuits over descrimination. Basic assertion was the new automated computer program profiled minorities. That started the hearings and resulted in the congressional mandate to open the flood gates... After all these are GSE's and it's not good for a government agency to be accused of unfair lending practices.

Need to look into Countrywide's "Friends of Anthony" program. Think you will find that Fannie Mae's biggest sub prime / alt-A customer was Countrywide. Most of these loans were rejected by the GSE's till 2004. A lot of banks took advantage of the reduced requirements too, but regulators have a responsibility to make sure they can't.

The news media is wrong. Today's drop wasn't lack of confidence. If it was, it would have been down all day in spite of the news. Today was a classic pump and dump. The hedgies took advantage of the big gains and positive news to catch everyone leaning and dump their stocks for a profit. It happened across the board so it was a coordinated attack. A lot of people lost a lot of money today when it should have been a big up day for all.

Hopefully the SEC is looking into this.