Fannie and Freddie

So they give out millions in bonuses to their executives and yet they now want 6-billion more in tax payers money! Geez.....

[url]http://video.foxnews.com/v/1257068778001/outrage-over-fannie-mae-freddie-mac-federal-aid-request[/url]

Not sure there's much harm in ASKING for more money.

The real blame lies in the crooks who GIVE them more money....i.e. our government.

Looking like this is getting both sides to agree it was wrong to give these bonuses. I'm wondering who allowed this pay scale to begin with? If this is a gubment subsidized entity then go after the gubment man who said sure......no problem, the tax payers are bailing you out and we the gubment will go after or take over business's as we see fit but it ok. We went after private sector executives who made millions in bonuses. Sure you guys go right ahead....Millions in bonuses???? Pfffffffff no one will notice.
So who is that guy who said it was ok to pay these salaries and bonuses? Congress? And don't forget they are asking for more of our money that's what started this latest congressional hearing.

Ole Gnewt Getrich made out pretty well also.

Please excuse my ignorance on this topic but are Fannie and freddie the ones that drove your economy into the ground and caused a recession due to the dirty dealings in the houseing market:confused:

Yes,but they had lots of help. Probably the biggest culprits were Harvard and yale, who graduate MBAs with out teaching them ethics, and moralaty.Then congress who helped erase some of the laws of ethical banking,Then the rating companys who gave a triple A rating to garbage investments.I guess wall street was really impressed withthat actor who said"greed is a good thing"

[QUOTE=Big Gills;472849]Please excuse my ignorance on this topic but are Fannie and freddie the ones that drove your economy into the ground and caused a recession due to the dirty dealings in the houseing market:confused:[/QUOTE]

Yep they were instrumental in the crash. Policies were put into action way back when(maybe during Clinton? Carter?) that encouraged loans to people who where less than desirable on paper to repay their loans to the banks and mortgage companies but the gubment wanted to show the love to all and give people opportunities they didn't deserve. Some were poor some were middle class and it's been reported some were just over extending their money.
Now they have been bailed out by us taxpayers and have succeeded in running it amuck again and want more money after they targeted huge bonuses to the executives.
The problem to me is our gubment wants to dictate who is successful in the private sector so they push their own agenda on us. Millions of people get sucked into their tangles web of lies, deceit and mis management and when it goes bankrupt it effects us all. Fannie and Freddie are said to be too big to fail....truth is it looks like they are so there is something wrong with that.

Question. How does a company justify giving a bonus, when they are not profiting? Aren't bonuses supposed to be given when something good and profitible is done? This is pure GREED, nothing more nothing less. They take our money and make them selves richer. This is absured and downright just bad. :mad::mad::mad::mad::mad::mad:

[QUOTE=kygorski;472845]Ole Gnewt Getrich made out pretty well also.[/QUOTE]

He states he told them what was wrong and they chose to not follow his firms advice. My understanding is that it was a business deal so what's wrong with that? If he is telling the truth and it was a contract between his private consulting firm and his clients what business is it of ours? He says he didn't lobby for them. I remember Barney Frank and Chris Dodd doing that.

I say not only should they not get any more taxpayer money, all government ties to Fannie and Freddie should be cut. Then again government ties to a lot of things should be cut... along with many government agencies, but that won't be happening under this administration.

DJ I wouldn't trust Gnewt if he slept in a bed full of bibles.

[QUOTE=Big Gills;472849]Please excuse my ignorance on this topic but are Fannie and freddie the ones that drove your economy into the ground and caused a recession due to the dirty dealings in the houseing market:confused:[/QUOTE]


In short no but they did dabble in some of the housing bubble pratices right before the bubble did burst.They were used by the goverment to buy a lot of the garbage left behind after the bubble burst as a means of bailing out the banks.


If you wanted to make a list and start at the top and point to something/someone that caused the housing bubble Fannie and Freddie would be well down the list. You would have to start with privately owned investment banks, credit rating agencies, mortgage originators, fund managers................

Here's a good read on the Housing crisis and a quote from the article.

[url]http://www.ritholtz.com/blog/2011/07/why-wallison-is-wrong-about-the-genesis-of-the-u-s-housing-crisis/[/url]

"Overall, private securitization mortgages defaulted at more than six times the rate of those originated for Fannie and Freddie securitization.?



Edited to add that giving bonuses to their executives is a joke and state that I'm not defending Fannie and Freddie with my post but just pointing out how blame can get shifted.