Replies to post #329769 on Fannie Mae-No Politics (FNMA)

[tuzedaze]

Don't forget the ratings agencies had them rated AAA as well.

This whole thing was to protect the banks. With the 3rd amendment, it got the debt ceiling out of the news while we continue to run up many trillions more instead of fixing all the entitlement programs and free cellphone handouts. The next time you see a "Warren Buffet" railroad train go by hauling nothing but Shipping containers inbound from China and Mexico, people working real jobs and contributing to the system would have helped fix the debt ceiling instead of the 3rd amendment being implemented.

Please release the 12000 docs so we can move on and get this over with.

[alexander77]

If only a very small percentage of FnF loans were in danger of not performing, if the FHFA deemed them safe and solvent just before the conservatorship and if FnF got AAA ratings, then both institutions have to be immediately released to its' owners and the government has to pay for incurring financial damage.

This is looking better and better for shareholders.

[rocco2]

So...Paulson took them over.


Theft, plain @ simple


$ FNMA

[rocco2]

As you should know, only a very small percentage of FnF loans were in danger of not performing. In fact, just weeks before the conservatorship, the FHFA deemed them safe and solvent.


$FNMA

[big-yank]

No,it was not just a casual assumption I was making about the rationale for conservatorship. There are many views similar to my own. Here's one from The Federal Reserve Bank of New York:

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr719.pdf

[955]

In the words of Judge Lamberth, Paulson's case was not ripe.

Paulson states:

"If we did not act immediately, Fannie and Freddie would, I feared, take down the financial system, and the global economy, with them."

My assumption is that after the crisis, Fannie and Freddie would no longer guarantee any loans from Banks that did not have the Captial to buy them back if they did not perform. By not purchasing them any longer, they would then "take down the financial system."