Agree with your comments, I just have to differe on this facts:
1- Their interests are beyond to filling the treasury's coffers. First FnF, FHFA, Treasury, and of course taxpayers who carry the heavy bag must pay to Fed under their conditions. You're right, they have had a lot of time to prepare their strategy...that's why the FHFA as conservator taken over the assets and assumed all the powers of the shareholders, directors, and officers. FHFA may take any necessary action to restore the firms to a sound and solvent condition... Stockholders’ voting rights are suspended during the conservatorship...Dividends on common and preferred stock have been suspended...The conservatorship will end when the FHFA finds that a safe and solvent condition has been restored.....thats mean whenever they wants..also treasury will buy preferred stock as needed. -In return, the government has received warrants to buy up to 79.9% of GSE common stock for $0.00001 per share, and if the GSEs emerge from conservatorship as stock corporations, the government as the majority owner will have the option of selling its shares at a profit.-Treasury will buy newly issued Fannie and Freddie MBSs in the open market as needed. That's why they imposed the sweep amendment on August of 2012 when FnF began to emerge and get profit. Thats why IMO they're pointing right now with the fat finger to the banks, just to be sure to have their money back before the party begins....I mean before the Fed's taper begins and national debt go to the sky and before de final solutions for good or bad are taking about FnF..
There is a mass of already known facts in that statement.
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2-The Congress is much more than a bunch of lazy, inept and rich people. IMO they're a powerful, elitistic and smart establishment.
Powerful and elitist. Yes. Smart? Give credit where credit is due. Smart has not be demonstrated in relation to Fannie and Freddie. Please demonstrate with substantial facts like legislation or reports or advocacy or something how smart they have been. Please show how the 113th Congress has done something regarding the GSEs. Please include the over the 500 Representatives and Senators out of 533 who have not produced or sponsored any legislation or public statements about the GSEs during this Congress.
They can legally making money at our expense, satisfy the interests of their masters, have "reputation-respect" and "working hard for the good of the folks" at the same time (A tough-relatively but juicy new career)
Please explain with examples and especially, about their masters and their interests. Let's be factual whenever we can.
3-I don't think the media are so dummy. It's just another manipulated, induced and disgusting market....say what another paid to say without considering the consequences....
It was not stated that they were dummies. Words were carefully used. Take a look again at what was actually said.
However, to address your misinterpretation, as if that was said, stupid is as stupid does. To prove your point that they are not dummies (that was never said), please compare the number of well-researched, roundly informed, factual articles about the GSEs in 2013 to the sheer mass of misinformation, twisted fact, outright falsehoods and mindlessly copied text from such lead articles. When done, please report your findings.
I don't believe even in the intention to strike Syria...A USA president waiting for the approval of the Senate in a war situation??? Only for gain time....time...time...for what? Everything it's so manipulated...
There is no war situation. The US has not been attacked by Syria. And It is not only the Senate but the House as well (Congress) that he seeks authorization. A little further study of the President's and Congress' differential war powers is needed in order to comprehend well what is currently happening.
Our country have a lot of economical issues...IMO it's smokescreen as has happened before to divert attention from domestic problems...
Are economic problems in the US not domestic problems? What do you mean economic problems are a smokescreen?
I really appreciate all your posters and your good judgement. I want to ask your opinion about the fact the Fed keeping MBS???I strongly believe that's the way of controlling the housing market under the new perspectives...
Best regard and GLTA
Thank you.
The Federal Reserve Bank's purchase of Fannie and Freddie MBS is a financial means to control mortgage interest rates so as to boost or support the housing market recovery. It does not necessarily work and there is debate about what such purchases do. It does not control directly the housing market which is influenced by a great number of factors. For example, Bernanke spoke about tapering and mortgage rates went up. Now how can mere words of a possible change in bond buying makes mortgage rates go up? There was no change in MBS buying at that moment. There was only an immediate preception that it would change. More than the Fed is involved.
Does DNA controls behavior? Well saying that is like saying the Fed controls the housing market. All one has to do is demonstrate it is so. It can be demonstrated that DNA does not control human behavior and that it is only one important factor among many important factors. The same can be done with Fed and the housing market.
All one has to do is to demonstrate the relation between purchasing or tapering MBS and current and future mortgage interest rates. It is not a direct one or the only one for sure.
To obtain a solid understading, trace the relative impact of money flows into the housing market on a step by step basis beginning with the flow of money from the Fed to the GSEs after purchasing MBSs. What happens after the money flows into the GSEs? Where does it go and how does it get there. What impacts does the flow have? How does the impact do its work? And by following closely the river, then streams, rivulets, and then drops of money from the money flows to actual individual home buyers, it is possible to get an idea how the mortgage interest rates may be reduced (or not) by the Fed purchasing MBS or tapering purchases and to see what "control" the Fed actually has at such a financial distance from the homebuyer, real estate agent, construction company, community and mortgage bank, etc.
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