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Old 08-16-2010, 07:15 AM
 
Location: Tennessee
35,967 posts, read 36,020,472 times
Reputation: 55607

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With a combined (Freddie and Fannie) loss of $9 billion for the 2nd quarter of 2010, they are asking for $3 billion more in bailout money. Tomorrow, the administration is hosting a conference to ask what should be done - should the federal government continue to subsidize the housing market?

"The two most possible alternatives for reforming Fannie and Freddie boil down to two extremes: either completely nationalize the mortgage lenders or privatize them. Experts say a solution that mixes private with public — like what existed before — is “unsustainable.” 'They will have to either keep them going as government entities or break them up and return them to GSE [Government-sponsored enterprise] status,' said Rivlin. 'What we do know is the prior situation didn’t work. The problem is mixing private with public – it’s unsustainable.'”

Two page article is here:

Debate intensifies over what to do about Fannie Mae and Freddie Mac | The Daily Caller - Breaking News, Opinion, Research, and Entertainment

Since the President on vacation, do you anticipate an actual decision to eventually be made as a direct result of this conference? If yes, what would you like to see happen versus what you suspect will happen?
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Old 08-16-2010, 11:34 AM
 
48,508 posts, read 88,714,733 times
Reputation: 18188
No'their will be a presidential commissio that in the end like all others will not do anyhting really.
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Old 08-16-2010, 12:18 PM
 
717 posts, read 1,104,608 times
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LET THEM FAIL, I am not interested in buying junk loans.

If you are then knock yourself out and send them a check.
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Old 08-16-2010, 01:18 PM
 
Location: San Diego California
6,797 posts, read 6,646,006 times
Reputation: 5180
Liquidate all the property held on their books at public auctions. When that is complete, disolve them.
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Old 08-16-2010, 09:16 PM
 
1,989 posts, read 4,111,460 times
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Not sure how to unravel the mess, but I will be against anything that's yet another backdoor bailout for the banks.
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Old 08-17-2010, 08:55 AM
 
3,698 posts, read 10,586,533 times
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Is the purpose of government to help stabilize communities and to help out taxpayers during national crises? Then bail them out.

Is the purpose of government to stand aside while the market collapses under the weight of a cascading series of failures made by those running the banks and mortgage companies, regardless of the impact on local communities and families? Then privatize the industry completely.
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Old 08-17-2010, 09:00 AM
 
22,769 posts, read 27,832,223 times
Reputation: 14617
Quote:
Originally Posted by sean98125 View Post
Is the purpose of government to help stabilize communities and to help out taxpayers during national crises? Then bail them out.

i dispute this claim that perpetuating fannie and freddie would help stabilize communities and help out taxpayers.

focusing on labor markets is what will help stabilize communities. as far as taxpayers are concerned, it is unclear to me how you figure that fannie and freddie work in their favor.
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Old 08-17-2010, 07:31 PM
 
48,508 posts, read 88,714,733 times
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Well with Barney frankj saying that a bailout is not likely and that government needs to not guaranteee mortgages except thru FHA for lower income its unlikely that there will be a bailout.Geithner has also commented that they are not interested in saving those loans that are behind because of the refailure rate Fannie experienced in the last year. Looks like more are coming to the conclusuion that Fannie and Freddie need to be closed out over 15 years or so and FHA become the standard only for lower incomes. Others and jumbo loans thru private lenders backed by private system of guarantees.Frank said that government encouragemnt of homeownership should continue thru tax incentives tho.
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Old 10-22-2010, 06:52 PM
 
Location: Chandler, AZ
5,801 posts, read 5,837,017 times
Reputation: 3119
They do need to be wound down and eventually eliminated, but hopefully in a lot less than 15 years.
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Old 10-22-2010, 08:03 PM
 
Location: Fairfield, CT
6,341 posts, read 9,324,440 times
Reputation: 7329
We need to let them sink, hopefully in a managed way, and re-privatize the mortgage market. It's the only solution. Government intervention has been highly destructive and raised housing prices, even though these entities were supposed to promote affordable housing.
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