Tom in RI

Multi-Family Real Estate: Fannie and Freddie's Next Headache?

RE: the reply to my posting by the "con."

If you buy a car at the sticker price it is the actual price. It is not an inflated price created by people with no insensitive to have truthful business practices. Obviously you can debate the sticker price at the lot but the example is not applicable. A car value will go down or up as did my '65 Mustang over time. And I am not debating the values of my business trucks either… I have diesels. So stick with apples and apples, not apples and oranges.

You are so wrong about real estate though. No one is crying, at least not me. Your reply is just emotional. You seem to miss the point... all home values will decline, yours included in your “bad decisions” comment. Face it; people were lied to about values by people with licenses to assign the values. It was a scam. And think about it. The investors who are getting burned in this scam had to have great credit and capital to invest in order to even get these loans. In your “too bad” world it is just spite driving your point of view.

So, maybe you are happy now because now these investors’ credit ratings are getting dragged down like maybe to where yours is?

People have a right to receive full disclosure when they make investments. Don't you think? Disclosure did not happen, investors were presented a smoke and mirror show about the real estate market with documented comps- that those in the industry created. So; as in any Ponsi Scam, those investing at the wrong point in the scam loose big. Sorry, it is not anything about bad business practice; it is about the nation being lied to on a huge scale. So, get unemotional and study what happened. Or is Madoff OK in doing what he did?