User 61942

Fannie and Freddie - Indeed, Too Big To Fail

Mark Thoma You are a Moron. I have sold real estate since 1976. The good times do not last forever and neither do the bad. Just another idiot jumping on the "end of the world" cnbc bandwagon. I have had as many as 100 homes listed in the 80's for Great American and San Diego Federal when there was another "foreclosure crisis". We sold ALL of them eventually,the market does and will absorb these losses at the point when the ROI provides a breakeven or positive cash flow on these distressed properties. Even now the savier lenders are holding the REO's and renting them out rather than take an excessive loss on the properties. The market will turn as it always has,and FNMA and Freddie will be there to package up the loans and sell them to investors seeking a fair ROI and replenishing the capital necssaary to keep the American Dream of Home ownership alive and well. This is the third Market Crash I have lived thru and have no doubt I will live long enough to see this one rebound,and perhaps see another "end of the world".