Fannie, Freddie Reportedly Could Require Another Bailout

[Tim The Enchanter]

So? Like they are not going down the same path of no money down, caution to the wind, insuring hedge fund bonds? What is new in this rodeo? The name of the clowns.

Maybe the silver lining is, if I have seen this movie before, I know what to expect.
I won't expect any sort of overall happy ending. But hopefully I see where to place my bets.

 

[djd09]

Saying "Fannie" in this forum calls TD from the beyond. It must be a conspiracy. Sure they paid the bailout back. Yes the treasury sweeps all their profits. And NO where in the U.S. Constitution is a Massive Government agency like this allowed.

Carry on Comrade.

 

[timd354]

Saying "Fannie" in this forum calls TD from the beyond. It must be a conspiracy. Sure they paid the bailout back. Yes the treasury sweeps all their profits. And NO where in the U.S. Constitution is a Massive Government agency like this allowed.

Carry on Comrade.

I don't know why you think that I believe that the GSE's should be a part of the government. I think that they should be re-privatized and that it should be made clear that there will be no future gov't bailouts.

 

[TRESinc]

I don't know why you think that I believe that the GSE's should be a part of the government. I think that they should be re-privatized and that it should be made clear that there will be no future gov't bailouts.

because that point of view does not lend itself to his wild conspiracy theories and even crazier assumptions. luckily for djd he is the only appraiser in the world who has clients who do not have any conditions for appraisal orders to make his life a little easier.

 

[djd09]

re-privatized

How many times will they need to be "re-privatized". A better idea is too get rid of them all together. But wouldn't that be hard now with their new 181 million dollar buildings on the corner of L and Fifteenth. What a party it is gonna be.

 

[timd354]

How many times will they need to be "re-privatized". A better idea is too get rid of them all together. But wouldn't that be hard now with their new 181 million dollar buildings on the corner of L and Fifteenth. What a party it is gonna be.

Get rid of them and replace them with what? Eliminating the two largest investors in the secondary market (Fannie & Freddie) will result in much higher borrowing costs and an eventual takeover of the secondary market by the already to big to fail banks like Wells, BOA, JP Morgan Chase, etc. If you are willing to acknowledge and accept the market disruption, the higher borrowing costs, and the further concentration of financial assets and power in the already too big to fail banks, then fine, but to think that simply eliminating the GSE's with no plan to replace them with something else will not result in a whole new set of problems is hopelessly naive and stupid.

 

[djd09]

"Fannie Mae might need to take its own advice: You shouldn’t buy more home than you can afford.

A June 9 inspector general’s report from the Federal Housing Finance Agency (FHFA), which controls operations through conservatorship of both mortgage giants Fannie Mae and Freddie Mac, released a scathing report on Fannie Mae’s FNMA, +0.00% plans for a new headquarters in downtown Washington, D.C., doubting that the plans for the so-called Midtown Center, which include spiral staircases, rooftop decks and three glass-enclosed walkways, “are appropriate for an agency in conservatorship.”

http://www.marketwatch.com/story/fa...eemed-too-lush-for-troubled-agency-2016-06-16

I'm sorry only a 151 million dollar luxury office building. Life is tough at the top. Who wouldn't want to be that business?

 

[djd09]

In all reality Fannie shouldn't exist anymore but based on the backs of hard working taxpayers they are still around.

The short term pain the markets would feel is nothing to what these clowns have already caused.

 

[djd09]

the higher borrowing costs,

You mean rate will reflect risk. It is a sad story.