Fannie & Freddie

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totalburnout

totalburnout

Well-Known Member
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Recked, I owe you an apology.

I sincerely thought that the government propping these companies up and injecting them with billions would have helped them clear the hurdle of the housing slump.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ajcw4yxxPGJ8&refer=news

Looks as though my friend is out his $5,000 worth of shares due to insolvency or at least he will be last in line to receive his payout.
 
They screwed themselves by having to take on bad debt that was chartered into their agreement with the government.

The majority of losses came from low income individuals that the government mandated the company take on the debt. The fault lies with both the government and the private sector.
 
I wonder if this will open up some nice cushy government jobs?
 
The gov't stated that they would be going through ALL the books of both companies.

That's the stuff *I* wanna see.
 
basically theses are quasi-govt companies, forced to make mortgages to ppl who can't afford them. hello sub-prime. freddie mac gave $1 mil to jesse jackson's rainbow/push for a literacy program, among other things. don't trust govt to run just about anything. usps almost always operates at a loss. libraries suck. our tax dollars not so hard at work. federal govt employs ~15% of population, biggest US employer. here in DC its really easy to tell who works for the fed govt. very hard to get fired from a fed govt job.
I say 1-2 yrs for housing to bottom out. govt interference will lengthen it.
 
Last edited:
thanks for the apology
i didn't get to read up on this latest news
i wonder how it'll affect my house hunt
time to do some research
 
cressidakiller said:
basically theses are quasi-govt companies, forced to make mortgages to ppl who can't afford them. hello sub-prime. freddie mac gave $1 mil to jesse jackson's rainbow/push for a literacy program, among other things. don't trust govt to run just about anything. usps almost always operates at a loss. libraries suck. our tax dollars not so hard at work. federal govt employs ~15% of population, biggest US employer. here in DC its really easy to tell who works for the fed govt. very hard to get fired from a fed govt job.
I say 1-2 yrs for housing to bottom out. govt interference will lengthen it.
Click to expand...

This is because, in the context of government, there is no incentive to operate efficiently. In fact, there is a great DISincentive, as efficiency will yield budget surpluses. Taxpayers then wonder why they are paying so much if it is not all being used for social benefit. Therefore, most governmental programs operate at a loss, beyond their means, allowing them to push for more money year after year.

Private business on the other hand, owes it to their shareholders to operate efficiently and maximize return on investment capital. A company that operates at a loss year after year will not have many years.

This just goes to show you that government does operate within vacuum; a unique environment that can be found nowhere else in the world.
 
oh yes, most govt has little accountability. i heard welfare-type money has 70% administrative cost. countries w/ bigger govt are usually poorer.
 
bahaha, owned.

FREDDIE MAC

(NYSE: FRE)
Real-time: 0.89
down_r.gif
4.21 (82.55%) 3:59pm ET


nothing like an 82% loss today. lol
 
Hold on to your asses and start eyeballing houses. Financial experts are saying mortgage rates could drop over 1%.
 
i'm not so sure about that.

they are already at historic lows.

in order to drop more, the fed would have to cut interest rates again... and i simply don't see them doing that.
 
Wouldn't take a 30 year. Ever done the math on it?
 
we're from different markets. around here, you aren't touching a 15 year as a first time... and probably even a 2nd time home buyer.

i personally have a 40 year fixed.
 
Yeah. Your'e right. Its much better to live in someone else's house and pay them the rent, so instead of investing money over time, you're just tossing it out the window.
 
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