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Fine for them, but what about those around the world, including foreign governments and banks, holding what would then be trillions of dollars worth of worthless GSE MBS? It would have crashed the global financial system and that of many countries, not just the US.
What regulation would have stopped HUD from mandating that the largest source of financing for the US mortgage market (Fannie and Freddie) had to show that more than 1/2 of the mortgages they buy and then sell worldwide as bundled MBS had to have been made to the poor and/or credit-compromised?
Fine for them, but what about those around the world, including foreign governments and banks, holding what would then be trillions of dollars worth of worthless GSE MBS? It would have crashed the global financial system and that of many countries, not just the US.
Bad things happen when you do stupid things.
Quote:
What regulation would have stopped HUD from mandating that the largest source of financing for the US mortgage market (Fannie and Freddie) had to show that more than 1/2 of the mortgages they buy and then sell worldwide as bundled MBS had to have been made to the poor and/or credit-compromised?
It doesn't happen without the removal of previous regulations.
HUD didn't have a penny to loan out and it has absolutely nothing to do with what I've said.
HUD is the regulator of Fannie and Freddie, the largest source of funding for the US mortgage narket. The Clinton/Cuomo HUD set the regulation that 50+% of the loans Fannie and Freddie bought had to have been made to poor and/or credit-compromised borrowers. Lenders sold Fannie and Freddie the loans they needed to meet that regulation. Fannie and Freddie then bundled and sold those loans worldwide as MBS.
Enter the Federal Reserve, which then creates $2 trillion in additional national debt to buy GSE MBS and bail out Fannie and Freddie so their MBS held by worldwide governments, banks, and investors don't become worthless, crashing the US and global financial systems.
As anyone can easily see, establishing a REGULATION steered the mortgage market in a very wrong direction, and would have ended catastrophically on a global scale had US taxpayers not been put on the hook for $2 trillion plus interest.
Even Barney Frank admitted it on C-SPAN:
"No more telling the private sector how to invest in the housing market."
You mean you actually like those trailer park dwelling, meth using, toothless, sister humping, high school dropping out, sleeveless t-shirt wearing, racist, homophobic, misogynist working class folk who live in worthless red states.
Can't tell reading some of the posters here who've said all of the above and more. In fact I seem to remember you saying similar things. I'd classify it as "contempt", but that's just me.
Exactly!
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