Replies to post #173875 on Fannie Mae-No Politics (FNMA)

[Danno_cal]

I'm with you all the way on this, King Tut!

They can spin it all they want but you that will never change for the very obvious reason you stated at the end.

[955]

Absolutely! Private capital will never take on the risks associated with a fixed rate 30 year mortgage. Only government backed by taxpayers has the assets and willingness to do that and still offer competitive rates. To think otherwise is total shortsightedness. Who are they trying to fool?

And the final point being that if wind down were to occur, that it is TOTALLY fantasy to think that the banks want, should or could take on $3-4Trillion in size. I don't care who manages the mortgage portfolios or how wide you want to spread it, it ALWAYS will have to be backed by the government and by default, the taxpayer. It has been proven in spades at least 3 times in the last 100 years that you cannot let mortgage holders go bankrupt without an ensuing Depression.