Home › Forums › Housing › for my next trick…. › am I missing something? this
am I missing something?
this thread is giving the impression that the GSEs are NOT already govt agencies
let’s review:
Fannie and Freddie have gone from being private corporations with an implicit govt guarantee to being, in essence if not fact, govt agencies with access to the govt’s unlimited checkbook (http://en.wikipedia.org/wiki/Federal_takeover_of_Fannie_Mae_and_Freddie_Mac ) – the supposed bailout limit of $200 billion each for Fannie and Freddie was recently removed – this change was announced Christmas eve after the markets had closed (http://www.dailyfinance.com/story/fannie-and-freddie-get-a-huge-christmas-gift-from-uncle-sam/19295524 ) – ie, this change was so stinky they didn’t want the markets to react, knowing that by Monday the news cycle would have moved onto something else – Fannie and Freddie are now allowed to lose as much of the taxpayer’s money as they want in an effort to prop up the real estate market (http://www.reuters.com/article/idUSTRE5BN2ZI20091224) – they were already broke so all of their losses are now a taxpayer expense (http://www.newstatesman.com/society/2008/07/housing-market-fannie-freddie )
Fannie and Freddie are losing money hand over fist – Fannie alone lost over $60 billion in the first three quarters of 2009 – and the default rates are climbing on all of their mortgage products, even the supposed ‘prime’ ones so their losses will continue to climb (http://online.wsj.com/article/SB10001424052748703278604574624681873427574.html?mod=rss_Today%27s_Most_Popular )
CEOs of Fannie and Freddie will receive $6 mil per year plus bonuses to oversee the squandering of the taxpayer’s money (http://www.bloggingstocks.com/2009/12/26/its-6-million-each-for-fannie-and-freddie-chief-executives/ ) – and this compensation package was announced Christmas eve after the markets closed …
~
if the GSEs haven’t been nationalized already, it is only a matter of paperwork and a few news releases
