Home › Forums › Financial Markets/Economics › Fed claims $13B profit on lending facilities
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davelj.
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February 17, 2011 at 3:07 PM #668708February 17, 2011 at 3:08 PM #667561
Eugene
Participant[quote=briansd1]
Need I mention how some ignorant folks believe that the Community Reinvestment Act caused the crisis?[/quote]Yeah. In Spain and Latvia.
February 17, 2011 at 3:08 PM #667623Participant[quote=briansd1]
Need I mention how some ignorant folks believe that the Community Reinvestment Act caused the crisis?[/quote]Yeah. In Spain and Latvia.
February 17, 2011 at 3:08 PM #668231Participant[quote=briansd1]
Need I mention how some ignorant folks believe that the Community Reinvestment Act caused the crisis?[/quote]Yeah. In Spain and Latvia.
February 17, 2011 at 3:08 PM #668370Participant[quote=briansd1]
Need I mention how some ignorant folks believe that the Community Reinvestment Act caused the crisis?[/quote]Yeah. In Spain and Latvia.
February 17, 2011 at 3:08 PM #668713Participant[quote=briansd1]
Need I mention how some ignorant folks believe that the Community Reinvestment Act caused the crisis?[/quote]Yeah. In Spain and Latvia.
February 17, 2011 at 3:47 PM #667586Diego Mamani
Participant[quote=Eugene]We (taxpayers) didn’t lose anything with Fannie and Freddie, nor will we. We essentially loaned them $150 billion at 10% interest (…) By the time they are done repaying the loan, we the taxpayers will probably end up making more money from the Frannie deal than from the latest GOP proposed budget cuts.[/quote] And where, pray tell, do you think Frannie and Freddie will get the money to pay the principal back, plus 10% interest? They are bleeding every month!
[quote]You have a logic gap here. Money flowing into mortgage brokers and subprime borrowers was not going into bonds with even a shred of implicit government guarantee.[/quote] I never said that money flowed from subprime borrowers to bonds. You got it backwards! Investors kept buying bonds with an implicit GSE guarantee, so that liquidity was available to keep funding subprime loans. The other part of the scam (not necessarily GSE-related) was the rating companies such as S&P and Moody’s giving “prime” (A+) ratings to slices of subprime loan bundles.
February 17, 2011 at 3:47 PM #667648Participant[quote=Eugene]We (taxpayers) didn’t lose anything with Fannie and Freddie, nor will we. We essentially loaned them $150 billion at 10% interest (…) By the time they are done repaying the loan, we the taxpayers will probably end up making more money from the Frannie deal than from the latest GOP proposed budget cuts.[/quote] And where, pray tell, do you think Frannie and Freddie will get the money to pay the principal back, plus 10% interest? They are bleeding every month!
[quote]You have a logic gap here. Money flowing into mortgage brokers and subprime borrowers was not going into bonds with even a shred of implicit government guarantee.[/quote] I never said that money flowed from subprime borrowers to bonds. You got it backwards! Investors kept buying bonds with an implicit GSE guarantee, so that liquidity was available to keep funding subprime loans. The other part of the scam (not necessarily GSE-related) was the rating companies such as S&P and Moody’s giving “prime” (A+) ratings to slices of subprime loan bundles.
February 17, 2011 at 3:47 PM #668257Participant[quote=Eugene]We (taxpayers) didn’t lose anything with Fannie and Freddie, nor will we. We essentially loaned them $150 billion at 10% interest (…) By the time they are done repaying the loan, we the taxpayers will probably end up making more money from the Frannie deal than from the latest GOP proposed budget cuts.[/quote] And where, pray tell, do you think Frannie and Freddie will get the money to pay the principal back, plus 10% interest? They are bleeding every month!
[quote]You have a logic gap here. Money flowing into mortgage brokers and subprime borrowers was not going into bonds with even a shred of implicit government guarantee.[/quote] I never said that money flowed from subprime borrowers to bonds. You got it backwards! Investors kept buying bonds with an implicit GSE guarantee, so that liquidity was available to keep funding subprime loans. The other part of the scam (not necessarily GSE-related) was the rating companies such as S&P and Moody’s giving “prime” (A+) ratings to slices of subprime loan bundles.
February 17, 2011 at 3:47 PM #668395Participant[quote=Eugene]We (taxpayers) didn’t lose anything with Fannie and Freddie, nor will we. We essentially loaned them $150 billion at 10% interest (…) By the time they are done repaying the loan, we the taxpayers will probably end up making more money from the Frannie deal than from the latest GOP proposed budget cuts.[/quote] And where, pray tell, do you think Frannie and Freddie will get the money to pay the principal back, plus 10% interest? They are bleeding every month!
[quote]You have a logic gap here. Money flowing into mortgage brokers and subprime borrowers was not going into bonds with even a shred of implicit government guarantee.[/quote] I never said that money flowed from subprime borrowers to bonds. You got it backwards! Investors kept buying bonds with an implicit GSE guarantee, so that liquidity was available to keep funding subprime loans. The other part of the scam (not necessarily GSE-related) was the rating companies such as S&P and Moody’s giving “prime” (A+) ratings to slices of subprime loan bundles.
February 17, 2011 at 3:47 PM #668738Participant[quote=Eugene]We (taxpayers) didn’t lose anything with Fannie and Freddie, nor will we. We essentially loaned them $150 billion at 10% interest (…) By the time they are done repaying the loan, we the taxpayers will probably end up making more money from the Frannie deal than from the latest GOP proposed budget cuts.[/quote] And where, pray tell, do you think Frannie and Freddie will get the money to pay the principal back, plus 10% interest? They are bleeding every month!
[quote]You have a logic gap here. Money flowing into mortgage brokers and subprime borrowers was not going into bonds with even a shred of implicit government guarantee.[/quote] I never said that money flowed from subprime borrowers to bonds. You got it backwards! Investors kept buying bonds with an implicit GSE guarantee, so that liquidity was available to keep funding subprime loans. The other part of the scam (not necessarily GSE-related) was the rating companies such as S&P and Moody’s giving “prime” (A+) ratings to slices of subprime loan bundles.
February 17, 2011 at 4:01 PM #667596briansd1
Guest[quote=Diego Mamani] Investors kept buying bonds with an implicit GSE guarantee[/quote]
During the boom, investors were buying mortgage backed securities which had no GSE guarantee.
The GSEs got into the game late towards the end of the bubble because they were worried about losing market share to the private issuers.
AFTER the crisis, had the GSEs and FHA not stepped in, the housing market would have crashed much deeper causing even more losses.
February 17, 2011 at 4:01 PM #667658Guest[quote=Diego Mamani] Investors kept buying bonds with an implicit GSE guarantee[/quote]
During the boom, investors were buying mortgage backed securities which had no GSE guarantee.
The GSEs got into the game late towards the end of the bubble because they were worried about losing market share to the private issuers.
AFTER the crisis, had the GSEs and FHA not stepped in, the housing market would have crashed much deeper causing even more losses.
February 17, 2011 at 4:01 PM #668267Guest[quote=Diego Mamani] Investors kept buying bonds with an implicit GSE guarantee[/quote]
During the boom, investors were buying mortgage backed securities which had no GSE guarantee.
The GSEs got into the game late towards the end of the bubble because they were worried about losing market share to the private issuers.
AFTER the crisis, had the GSEs and FHA not stepped in, the housing market would have crashed much deeper causing even more losses.
February 17, 2011 at 4:01 PM #668405Guest[quote=Diego Mamani] Investors kept buying bonds with an implicit GSE guarantee[/quote]
During the boom, investors were buying mortgage backed securities which had no GSE guarantee.
The GSEs got into the game late towards the end of the bubble because they were worried about losing market share to the private issuers.
AFTER the crisis, had the GSEs and FHA not stepped in, the housing market would have crashed much deeper causing even more losses.
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