Replies to post #163930 on Fannie Mae-No Politics (FNMA)

[buccaneer1961]

whats your opinion on this>

[navycmdr]

I reeeeeeeealy LIKED THIS PART ! ... lol

" Instead, FHFA, acting as conservator and regulator, and Treasury, acting as loan shark, took the unprecedented and unforeseeable move of placing the Companies into conservatorship, saddling them with largely unnecessary debt, using them parasitically to protect unrelated financial institutions, and then steering

all of the Companies’ profits to the Government's coffers

indefinitely and without regard for the debts imposed upon the

Companies by the Government itself - all at the expense of the

Companies' shareholders. Each of these acts, which were part of a

broad governmental scheme, had nothing to do with the statutorily-

defined purpose of a conservatorship - to preserve and conserve the

assets of an allegedly troubled institution - but were rather

orchestrated to serve a wholly unrelated purpose, namely creating

stability in the greater economy and providing Treasury with needed funds."

[jarenawer]

Amazing

[detearing]

If this is actually government's response, sounds like more of the same...accumulating good news leading to the eventual restoration of FNMA FMCC...

Oh shoot, starting to toast too early with the spiked egg nog.

[Daveknowsnothing]

I like this part....
For example, in support of the bill, Senator Isakson (R-GA) explained that: The bill we are doing tomorrow is not a bailout to Freddie Mac and Fannie Mae or the institutions that made bad loans. It is an infusion of confidence the financial markets need. Fannie and Freddie suffer by perception from the difficulties of our mortgage market. If anybody would take the time to go look at the default rates, for example, they would look at the loans Fannie Mae holds, and they are at 1.2 percent, well under what is considered a normal, good, healthy balance. The subprime market’s defaults are in the 4 to 6 to 8-point range. That is causing that problem. That wasn’t Fannie Mae paper, and it wasn’t securitized by Fannie Mae. They have $50 billion in capital, when the requirement is to have $15 billion, so they are sound.