When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Wednesday, May 29, 2013

How much do Fannie and Freddie still owe US? Everything

GSE stands for Government Sponsored Enterprise and that is exactly what Fannie Mae and Freddie Mac are--entities created by the US Government. Fannie and Freddie were bailed out by the US government in the housing crash, but their history is filled with corruption, political contributions (some would call them "kickbacks") and other sordid tales of overpaid incompetent executives and worse--about what you would expect of any "Government Sponsored Enterprise." Now, stories appear throughout mainstream media whose implied line is to remove direct US involvement and return to the pre-bubble (i.e., corrupt) status of both organizations.  Better idea--abolish both entities and return mortgage markets to regular market entities--bankers, mortgage lenders, etc.

How much do Fannie and Freddie still owe us? - CBS News: " . . . the U.S. government stands to potentially make a profit on its massive bailout of the two mortgage giants after they unilaterally failed in the fall of 2008. This raises a bunch of new questions about the future of Fannie and Freddie. There's been a lot of talk in Washington about shifting the role the two companies have in the mortgage market and bringing private companies back to the secondary mortgage market plate. Now that Fannie and Freddie are operating as government cash cows, with all their profits going into a general fund that the Treasury may spend as it pleases, it might be harder for the government to give them up."


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects