Replies to post #210748 on Fannie Mae-No Politics (FNMA)

[feralcomprehension]

Sincere thanks for the detailed and informative post.

[Always wondering]

Great post Bruce, thanks. Tough situation and business to fully understand as an outsider.

[mike_usa]

Bruce it's nice to see your very insightful post. Thanks.

[zazookaz]

rep! amazing! thanks for the info...helps me decide...very insightful!

[Dollars1]

I remember in the beginning right at that time, everybody was throwing out their ideas, Dave Ramsey kept saying, lift the mark to market. That could solve a lot.

[Patswil]

Well this sounds good, however mostly un-substantiated----it does sound plausible--------I prat that the discovery process uncovers these kind of malevolent acts.....it should-----and also you fail to mention the Feds and their illegal involvement dumping $400 billion in toxic mortgages on Fannie & Freddie----it mostly sounds legal, hence no jail time

[Koog]

Excellent post, Bruce.

I saw the entire play from a different perspective. I was a Realtor (as a last career) having retired after years in the semiconductor corporate world with a 1981-vintage MBA.

Folks who should not get mortgages were getting loans with minimum down payment and very little documentation. A lot of my clients were getting liar loans. While my fellow Realtors were loving life, I started digging. Something along the lines of "why would a mortgage company enter a loan agreement that clearly went against the best interests of the mortgage company?" When you encounter a contradiction, always check your premises.

I started to get a hint of what you posted (along with the fact that Congress explicitly told the mortgage companies that EVERYONE should be able to buy a house). It was only later, with the benefit of hindsight, that I really started understanding fully what happened.

I held my nose for a while and continued to do my job. Finally, I woke up one morning and said "ENOUGH!"

First I called my RE Broker and quit. Then I called my stock broker and arranged a transfer of funds to pay off the mortgage on my house. This was in Sept. 2007.

[Donotunderstand]

Informative but not as plain english as you may think

I do like that you show that "Crappy Borrowers" were not even close to being a neighbor of the cause ..... Everyone likes to blame the requirements to help out the middle class - Billions of course --- when Trillions of money was bet in the shadow markets

What are you saying re the capital level of F and F - ?

[Crazy Money]

I am 62 years old now

[Zargis]

That is indeed an interesting bed time story.
Be well,

-zargis

[fb22term]

Bruce. Thank you for that summary. If I may I have a question for you. Where does the current financial system go from here? What do you see coming down the shoot in the next year or 2? Thanks

[chessmaster315]

Interesting, and probably accurate, Bruce.
Prior to 2008 crash, banks sold those bad loans to fannie, misrepresenting their worth.

Most people do not comprehend a trillion dollars. Fannie has more than 3 of them, in mortgages. Fannie is not just a freight train, but is a string of freight trains going across America. Millions of mortgages. If a car gets in fannie's way, the train obliterates the car and does not even slow down. Remember, fannie is a string of 3 trillion dollar locomotives. No one has ever seen an 84 billion dollar profit in a company before. Even a 187 billion dollar loss is paid back in less than a decade, with interest.

The fannie train is so huge, that, when it did come off the tracks, it simply oblitterated anything in its own path, homes, garages, banks..wiped out like they were toothpicks. Now, fannie has actually gotten back on the tracks now, and the government wants to stop it. The 3 trillion locomotive quashed the governments wind down attemps like a bug on the windshield of a bic mac truck.

All of America is behind the train, with Americans in their fannie mae loans. Yes, Im on that train. I have a fannie loan, and am a shareholder. Get on, or be left behind. We are not waiting on you, this train will leave on time.