What a Misleading article. Wow!!!!!I thought crap only comes down in the winter season...))))
Kingu1ysnmbr1m thank you for keeping ears to the ground and for sharing this article as soon as it became available to we can counter attack it with the truth.
Here is what some have already writen on the website in their comment on the aritcle. Thank you guys for your efforts no matter who you are!!!
Quote: Voice_of_Reason (wrote)
9:44 PM EDTYou would think that the editorial board of WaPo would know better than to counter misleading ads with a misleading op-ed.
The simple fact is that there is no "free market" alternative to Freddie and Fannie and that Freddie and Fannie provided liquidity to a market that would not exit without them (and will not exist without them).
The big losers from this are not the hedge fund managers (who were wise enough to realize that Freddie and Fannie would return to profitability), it is the average American homeowner that will be the big loser.
On average, the typical American household is a good bet when it comes to mortgages. Individually, however, they are high risk (due to low wealth). The solution to this problem is to diversify that risk. To do that requires a huge capital market, one that would not exist without the implicit backing of the government. Hence the existence of Freddie and Fannie, who for decades provided the liquidity that allowed typical Americans to own their own homes (and yes, there was cronyism but that is a separate issue).
Those who support the "winding down" of Freddie and Fannie are typically those who suggest that they were responsible of the housing market crisis. The reality is that it was the Wall Street banks' that were responsible (by passing off securities consisting of tranches of payments from subprime mortgages as AAA assets). That WaPo would piggyback on Wall Street's apologists is disturbing. Almost as disturbing as an op-ed that counters lies with lies.
fnf12345 (wrote)
9:55 PM EDTWhen you have so many factual errors and lies in your article,
how can you accuse others of lying.
Gov does not own any shares in Fannie and Freddie.
It has warrants to buy 79.99% shares subject to legality of the agreement.
The ad messages have to be brief and deliver the message.
So one can always argue about accuracy.
free_Fannie_and_Freddie (wrote)
10:04 PM EDTThese housing reform bills are scams but I figured the media will pump them before the Senate Banking Committee meeting. Congress has hid behind the guise of 'protecting the taxpayer' and their Federal Mortgage Insurance Company proposal leaves taxpayers on the hook for 90% of losses in the event of a future crisis.
It does nothing but rearrange names and shuffle money around, 5.4 trillion in assets to be exact. It is a tremendous waste of time and money given nothing changes and the systemic risk remains. Michael Bright, a former Countrywide Financials executive, wrote this bill for Bob Corker.
It eliminates Fannie Mae and Freddie Mac shareholders for the benefit of the London insurance markets and select US banking interests. Those shareholders include individuals as well as pension funds for firefighters, police, teachers, and nurses. Corker ignores this and focuses on Pershing and Fairholme as if they are the only shareholders.
This system has worked well since 1938 until Congress pumped the sub prime and originating lenders (banks) compromised underwriting standards. This plan is like an unscrupulous mechanic fixing the only part of a broken car that works. The amount of corruption is obscene.
The government wants to sweep Fannie and Freddie under the rug before the unconstitutional property sweep of shareholder equity as well as securities fraud and insider trading related to the equities of both companies committed by the Treasury and FDIC becomes common knowledge to the public.
At the end of the day the average homeowner or potential homeowner will suffer. Housing will be slightly more expensive, the banks the caused the crisis to begin with will make more money, tax payers will suffer during the next housing crisis, and property rights in the US will be compromised.
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