Replies to post #148408 on Simply Politics and News (GOV)

[extelecom]

Don't know who Yogi is, never saw that said anywhere.

[extelecom]

Relax, You have nothing to worry about!

Bwahahahaahhaahahahaha

[Gulfbreeze]

You speak your usual lack of facts and Garbage...
All this before Bush even became Pres...
He screwed up a lot but this one is not his doing.

In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers. At the same time, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans...

In 1999, The New York Times reported that with the corporation's move towards the subprime market "Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980s." Alex Berenson of The New York Times reported in 2003 that Fannie Mae's risk is much larger than is commonly held.[13] Nassim Taleb wrote in The Black Swan: "The government-sponsored institution Fannie Mae, when I look at its risks, seems to be sitting on a barrel of dynamite, vulnerable to the slightest hiccup. But not to worry: their large staff of scientists deem these events "unlikely".

In 2003, the Bush administration recommended significant regulatory overhaul of Fannie Mae and Freddie Mac. However, the Democrats opposed that proposal, fearing that tighter regulation could sharply reduce financing for low-income housing, both low and high risk. (Also calling them racist) Under immense lobbying pressure from Fannie Mae in association with Congressional Democrats led by Rep. Barney Frank,Congress did not introduce any legislation aimed at bringing this proposal into law until 2005.

In 2006, the Federal Housing Enterprise Regulatory Reform Act of 2005 (first put forward by Sen. Charles Hagel [R-NE]) where he pointed out that Fannie Mae's regulator reported that profits were "illusions deliberately and systematically created by the company's senior management". However, this legislation too met with opposition from both Democrats and Republicans. This bill was passed by the House, but was never presented to the Senate for a vote.