Forum Replies Created
-
AuthorPosts
-
Diego 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.
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.
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.
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.
Participant[quote=briansd1]But certain uninformed people who just don’t understand the chain of events accuse the GSEs of CAUSING the crisis.[/quote]
Brian, the GSEs were part of the system that caused the crisis. I agree that the GSEs were not the sole cause, but the implicit government guarantee behind paper issued (or repackaged) by the GSEs introduced a great deal of distortion in the market, which resulted in cheap money flowing into mortgage brokers and subprime borrowers, inflating house prices to ridiculous levels.
Participant[quote=briansd1]But certain uninformed people who just don’t understand the chain of events accuse the GSEs of CAUSING the crisis.[/quote]
Brian, the GSEs were part of the system that caused the crisis. I agree that the GSEs were not the sole cause, but the implicit government guarantee behind paper issued (or repackaged) by the GSEs introduced a great deal of distortion in the market, which resulted in cheap money flowing into mortgage brokers and subprime borrowers, inflating house prices to ridiculous levels.
Participant[quote=briansd1]But certain uninformed people who just don’t understand the chain of events accuse the GSEs of CAUSING the crisis.[/quote]
Brian, the GSEs were part of the system that caused the crisis. I agree that the GSEs were not the sole cause, but the implicit government guarantee behind paper issued (or repackaged) by the GSEs introduced a great deal of distortion in the market, which resulted in cheap money flowing into mortgage brokers and subprime borrowers, inflating house prices to ridiculous levels.
Participant[quote=briansd1]But certain uninformed people who just don’t understand the chain of events accuse the GSEs of CAUSING the crisis.[/quote]
Brian, the GSEs were part of the system that caused the crisis. I agree that the GSEs were not the sole cause, but the implicit government guarantee behind paper issued (or repackaged) by the GSEs introduced a great deal of distortion in the market, which resulted in cheap money flowing into mortgage brokers and subprime borrowers, inflating house prices to ridiculous levels.
Participant[quote=briansd1]But certain uninformed people who just don’t understand the chain of events accuse the GSEs of CAUSING the crisis.[/quote]
Brian, the GSEs were part of the system that caused the crisis. I agree that the GSEs were not the sole cause, but the implicit government guarantee behind paper issued (or repackaged) by the GSEs introduced a great deal of distortion in the market, which resulted in cheap money flowing into mortgage brokers and subprime borrowers, inflating house prices to ridiculous levels.
ParticipantYeah dude, cut back!
Anyways, the $13B pales in comparison to the money that we (taxpayers) will lose with Fannie and Freddie. We’ve already lost close to $150 BILLION, and we stand to lose another $160 billion to $1 trillion, according to conservative estimates:
ParticipantYeah dude, cut back!
Anyways, the $13B pales in comparison to the money that we (taxpayers) will lose with Fannie and Freddie. We’ve already lost close to $150 BILLION, and we stand to lose another $160 billion to $1 trillion, according to conservative estimates:
ParticipantYeah dude, cut back!
Anyways, the $13B pales in comparison to the money that we (taxpayers) will lose with Fannie and Freddie. We’ve already lost close to $150 BILLION, and we stand to lose another $160 billion to $1 trillion, according to conservative estimates:
ParticipantYeah dude, cut back!
Anyways, the $13B pales in comparison to the money that we (taxpayers) will lose with Fannie and Freddie. We’ve already lost close to $150 BILLION, and we stand to lose another $160 billion to $1 trillion, according to conservative estimates:
ParticipantYeah dude, cut back!
Anyways, the $13B pales in comparison to the money that we (taxpayers) will lose with Fannie and Freddie. We’ve already lost close to $150 BILLION, and we stand to lose another $160 billion to $1 trillion, according to conservative estimates:
-
AuthorPosts
