DieselPwr44 Posted January 23, 2010 Share Posted January 23, 2010 http://finance.yahoo.com/news/Rep-Frank-Abolish-Fannie-Mae-apf-2556602798.html?x=0 WASHINGTON (AP) -- A top lawmaker on Capitol Hill is calling for the elimination of mortgage finance companies Fannie Mae and Freddie Mac and the establishment of a new system to provide money for U.S. home loans.Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee, said Friday he supports replacing the two companies entirely. "I believe this committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," Congress' theme song should be the Elvis classic "I'm A Roustabout": Build it up, knock it down Hold it square, roll it around Throw it in the air, stick it in the ground.... Wasn't Frank telling everyone Freddie and Fannie were fine? *scratches head* Link to comment Share on other sites More sharing options...
DRSmith Posted January 23, 2010 Share Posted January 23, 2010 What purpose do they serve exactly? Link to comment Share on other sites More sharing options...
Ax Posted January 23, 2010 Share Posted January 23, 2010 Seems queer for such a recommendation to be coming from the guy who helped to screw Fannie & Freddie up in the first place, doesn't it? Link to comment Share on other sites More sharing options...
twa Posted January 23, 2010 Share Posted January 23, 2010 Seems queer for such a recommendation to be coming from the guy who helped to screw Fannie & Freddie up in the first place, doesn't it? Naw...if ya abolish them then he gets no blame for the shape they are in and of course credit for the new,improved monstrosity. Link to comment Share on other sites More sharing options...
Riggo-toni Posted January 23, 2010 Share Posted January 23, 2010 In other news, Pavarotti says Americans need to watch their weight, and Rosie O'Donnell whines that everyone she meets is an annoying self-righteous know-it-all.... Link to comment Share on other sites More sharing options...
Larry Brown #43 Posted January 23, 2010 Share Posted January 23, 2010 It's all part of his grand scheme to replace "Freddie Mac" and "Fannie Mae" with "Barney Frank." Link to comment Share on other sites More sharing options...
daveakl Posted January 23, 2010 Share Posted January 23, 2010 Sigh, This is why I am checking out of the political world and just going to focus on me and my family. Fannie Mae and Freddie Mac are failing because of the different legislative rules placed on them. They are/were/are (depends on how you look at them) good programs and totally removing them would be a horrible idea. Link to comment Share on other sites More sharing options...
alexey Posted January 23, 2010 Share Posted January 23, 2010 Sigh, This is why I am checking out of the political world and just going to focus on me and my family. Fannie Mae and Freddie Mac are failing because of the different legislative rules placed on them. They are/were/are (depends on how you look at them) good programs and totally removing them would be a horrible idea. They are talking about not removing them but "coming up with a whole new system of housing finance". Seems queer for such a recommendation to be coming from the guy who helped to screw Fannie & Freddie up in the first place, doesn't it? It seems reasonable that he'd want to correct his mistakes. It's kind of strange to hear people who complained that Fannie Mae and Freddie Mac are the problem, complain now about initiatives to address that problem. Link to comment Share on other sites More sharing options...
Ax Posted January 23, 2010 Share Posted January 23, 2010 It's kind of strange to hear people who complained that Fannie Mae and Freddie Mac are the problem, complain now about initiatives to address that problem. You found no such complaint in my statement. Only that it seemed, more than strange, for a proposed solution to be coming from the guy who is the face of why it all blew up to begin with. We would trust him now because? Link to comment Share on other sites More sharing options...
Koolblue13 Posted January 23, 2010 Share Posted January 23, 2010 The same Frank who said to keep dumping money in that burning trash can? The same guy who said tax dollars are not the peoples money, but the governments? How does this guy still have a job. Link to comment Share on other sites More sharing options...
aREDSKIN Posted January 23, 2010 Share Posted January 23, 2010 The same Frank who said to keep dumping money in that burning trash can? The same guy who said tax dollars are not the peoples money, but the governments? How does this guy still have a job. He's from Massachusetts. Maybe, just maybe the people from Ma have seen the light. Probably not though. Link to comment Share on other sites More sharing options...
THEREALTOR1 Posted January 23, 2010 Share Posted January 23, 2010 Naw...if ya abolish them then he gets no blame for the shape they are inand of course credit for the new,improved monstrosity. Link to comment Share on other sites More sharing options...
Hubbs Posted January 23, 2010 Share Posted January 23, 2010 Yeah, the fact that Frank has been involved in most of the plans that led to the current Fannie/Freddie black hole doesn't exactly inspire me. Link to comment Share on other sites More sharing options...
Fergasun Posted January 23, 2010 Share Posted January 23, 2010 Let me introduce you guys to covered bonds. There were some issues with them in Europe as well, so its not a panacea. I bet this is part of what replaces Fannie and Freddie... maybe check back in on this in 6 months? Link to comment Share on other sites More sharing options...
Destino Posted January 24, 2010 Share Posted January 24, 2010 You found no such complaint in my statement. Only that it seemed, more than strange, for a proposed solution to be coming from the guy who is the face of why it all blew up to begin with.We would trust him now because? I really hate this "repeat a lie enough it becomes the truth" bull****. He is not the reason both Freddie and Fannie are in trouble and the government didn't cause this. You can say that all damn day it's never going to be true. Link to comment Share on other sites More sharing options...
Duncan Posted January 24, 2010 Share Posted January 24, 2010 They are talking about not removing them but "coming up with a whole new system of housing finance".It seems reasonable that he'd want to correct his mistakes. It's kind of strange to hear people who complained that Fannie Mae and Freddie Mac are the problem, complain now about initiatives to address that problem. If barney wasn't out on the cable circuit taking no responsibility for the housing collapse it might come across as sincere. Its no coincidence that FM is not subject to restrictions on obscene bonuses. They are the good guys afterall because they work for the government. http://online.wsj.com/article/SB123876318076986497.html "In a compensation program that has drawn angry protests from lawmakers, Fannie Mae and Freddie Mac expect to pay about $210 million in retention bonuses to 7,600 employees over 18 months, according to a letter from the mortgage companies' regulator." Tax dollars at work. "In the letter, a copy of which was reviewed by The Wall Street Journal, Mr. Lockhart defends the bonuses as vital to retaining talent at the two companies, the main providers of funding for U.S. home mortgages." Sounds familiar doesn't it? Link to comment Share on other sites More sharing options...
Johnny Punani Posted January 24, 2010 Share Posted January 24, 2010 I really hate this "repeat a lie enough it becomes the truth" bull****. He is not the reason both Freddie and Fannie are in trouble and the government didn't cause this. You can say that all damn day it's never going to be true. And repeatedly saying something is a lie doesn't mean it is either. So, what is the truth? Link to comment Share on other sites More sharing options...
chipwhich Posted January 24, 2010 Share Posted January 24, 2010 And repeatedly saying something is a lie doesn't mean it is either.So, what is the truth? WORD! That's Destino's continuous response. It's as silly as the argument he recites. Truth is if 2 government agencies are a disaster who do you blame? Link to comment Share on other sites More sharing options...
NOLASKINSFAN Posted January 24, 2010 Share Posted January 24, 2010 Is his boyfriend moving to AiG? Link to comment Share on other sites More sharing options...
Destino Posted January 24, 2010 Share Posted January 24, 2010 And repeatedly saying something is a lie doesn't mean it is either.So, what is the truth? The truth is the market fell to the exact same influences behind every bubble that bursts. People got excited at EVERY LEVEL at the profit potential and consistently rising prices and made mistakes. Blaming the government is completely absurd. They were one player when truly all involved made disastrous decisions. The lending institutions themselves made the worst moves as evidenced by their current state. The mistakes that blew over the house of cards occurred because there was money to be made, ridiculous amounts of it. Link to comment Share on other sites More sharing options...
chipwhich Posted January 24, 2010 Share Posted January 24, 2010 The truth is the market fell to the exact same influences behind every bubble that bursts. People got excited at EVERY LEVEL at the profit potential and consistently rising prices and made mistakes. Blaming the government is completely absurd. They were one player when truly all involved made disastrous decisions. The lending institutions themselves made the worst moves as evidenced by their current state. The mistakes that blew over the house of cards occurred because there was money to be made, ridiculous amounts of it. Yeah but if anyone involved had an inch of common sense they would have known it was a house of cards. As I told my wife when we sold our last house, which btw was jumping in price from 25K-50K every three months in the hottest of markets, that it was all funny money. It wasn't real because houses don't appreciate at that rate. Yet the lending continued. Don't try and hide the blame. Anyone with any common sense knew it was a disaster waiting to happen. Including BF. Link to comment Share on other sites More sharing options...
TheLongshot Posted January 24, 2010 Share Posted January 24, 2010 Yeah but if anyone involved had an inch of common sense they would have known it was a house of cards.As I told my wife when we sold our last house, which btw was jumping in price from 25K-50K every three months in the hottest of markets, that it was all funny money. It wasn't real because houses don't appreciate at that rate. Yet the lending continued. Don't try and hide the blame. Anyone with any common sense knew it was a disaster waiting to happen. Including BF. Maybe the answer is that common sense isn't so common. If it was, we wouldn't be in this mess. Not to mention that it is easy to come in after this and say that they should have seen it coming. Link to comment Share on other sites More sharing options...
chipwhich Posted January 24, 2010 Share Posted January 24, 2010 Maybe the answer is that common sense isn't so common. If it was, we wouldn't be in this mess. Not to mention that it is easy to come in after this and say that they should have seen it coming. Really? I knew it was coming as well as many others. It's really simple. Housing prices rise and fall based on interest rates. It's really not that difficult of a concept and it's not something genius I pulled out of my rear end. With falling rates, interest only loans, 3 year arms, people can afford to pay more with less money. It's no secret or nothing history doesn't dictate. As rates rise (which by the way are being held down in this economy) the housing prices will fall further. Anyone in charge should know the ABC's of this. So your comment is really kind of silly... Link to comment Share on other sites More sharing options...
Destino Posted January 24, 2010 Share Posted January 24, 2010 Really? I knew it was coming as well as many others.It's really simple. Housing prices rise and fall based on interest rates. It's really not that difficult of a concept and it's not something genius I pulled out of my rear end. With falling rates, interest only loans, 3 year arms, people can afford to pay more with less money. It's no secret or nothing history doesn't dictate. As rates rise (which by the way are being held down in this economy) the housing prices will fall further. Anyone in charge should know the ABC's of this. So your comment is really kind of silly... So if I told you that you could make a million dollars by taking advantage of the climate would you have said no no no it's all funny money and that would be wrong? You see hindsight is easy when you remove the cause of the problem in the first place. We can all stand around patting ourselves on the back saying "I saw this coming" but the truth is you didn't have any motivation to simply not care. Welcome to capitalism boys and girls, the name of the game isn't protecting the economy for the rest of you. The game is to make as much as you can as fast as you can. That's the air in the bubble, it's called greed. Do you think any of the people that made a fortune during that period had to give any of it back? You have any idea how fondly people in the real estate business speak of that period? They were spending as much time as possible talking anyone of any credit score or background into believing that it was time to buy a house. Borrowers were caught up in it too thinking "I can't afford it but they are appreciating so quickly that before my ARM matures I can sell it AND MAKE A KILLING!". Banks were thinking "who cares if they can't afford it the house is worth so much more, if we need to foreclose we'll make a fortune!" The government certainly didn't want to be viewed as slowing the housing boom by opposing anything the banks wanted to do at the time, so they approved it if banks increased lending operation in neighborhoods that had almost no lending presence. So the bad loans kept being churned out and the banks decided to not only lend everywhere... but to screw those people and charge them more, hello SUBPRIME! In case you guys didn't know that subprime loans paid all involved the most money. So much money that subprime loans were sold to borrowers that easily qualified for prime loans! So yeah did the army of professionals see it coming just like the wise chipwhich? You bet your ass they did. But when their are mountains of cash to be made, no one gave a damn. Make it while you can and worry about it when you're lighting your cigars with a hundred dollar bill. Link to comment Share on other sites More sharing options...
chipwhich Posted January 24, 2010 Share Posted January 24, 2010 So if I told you that you could make a million dollars by taking advantage of the climate would you have said no no no it's all funny money and that would be wrong? You see hindsight is easy when you remove the cause of the problem in the first place. We can all stand around patting ourselves on the back saying "I saw this coming" but the truth is you didn't have any motivation to simply not care. Do you think any of the people that made a fortune during that period had to give any of it back? I am not patting myself on the back, I am not giving myself credit, and I am referring to a GOVERNMENT agency not a for profit entity....so your point is worthless. Common sense and fiscal responsibility dictates my point. Has nothing to do with pats on the backs or fortunes to be made. See recent/current car sales. Interest rates move product. When interest rates rise, product prices decrease and vice versa. What is your point. Link to comment Share on other sites More sharing options...
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