Fannie and Freddie

"f-N-f" certainly had a hand in it, but lets besure we are aware of the whole problem. These 2 financial giants are part of the seconday market. So lets besure we don't lay the whole balme on the wheels, and excuse the tires that were on the road at the time.

Realtors jacked prices to get more commission, consumers were in a feeding frenzy seeing home prices up, meaning more for their old place. Those two things fed on each other and escalated. The "Primary" market lenders got greedy and jacked interest rates, and as you can't get interest without a loan being out, they greatly eased qualification of (and in some cases supported the fraud of) the consumers/buyers and qualified folks for loans they did not qualify for, and really could not afford. The consumer getting the loan wanted a high buck house in an ever inflating market, because he wanted to live there a while to build equity, then sell, take a profit in cash, use the cash to buy cars and vacations, then jump back into the next big loan to go back to the well. Banks let the loans go easy, and the only way a bank who has loaned money gets it back is to sell that bad loan to somebody. That's the secondary market, "F-N-F". When Fx2 got the loans that really were junk equitites, they bundled them, lied on the ratings, and sold thm off to other greedy folks who wanted to make interest money.

Bottomline, the economy slowed, folks couldn't make payments, the houses went on a market that had more supply then demand, the prices dropped, the banks were stuck with properties they could not sell, and as no payments were being made on the properties, the investors and Fx 2 lost their income sources for all that leveraged debt.

My desires:
- 1. Prosecute anyone who either granted, applied for, or bought and sold loans fraudulently. Set the tone for intergrity in the system for the future.
- 2. Govt continues to stay out of the market, and spends its time actually QCing the secondary market's behavior and conduct. I.E. get the inspectors in and inspect the loans granted, and zing the bank, bankers, F x 2 execs that do it wrong.
- 3. Do not bail out the home owners involved. They must feel what the risk and damages truely are and be held responsible for their conduct.
-4. Turn down folks for home loans who do not qualify, but make it a federal law the lending institution has to provide them advice on how to better their credit and become more financially responsibloe so they can get a loan.
-5. HOLD PEOPLE ACCOUNTABLE FOR THEIR ACTIONS!
-6. Reward with loans those folks who are of sound credit, and deserve the opportunity for a new house. Better borrowers means lower risk. Lower risk means lower interest, lower interest inspires home buying and spurs the housing market, which fuels builders, and fuels suppliers, all adding to economic recovery. And better buyers, with more secure loans means F x 2 can honestly sell bundled lonas to investors who do have greater peace of mind and security that they have bought good investments.

But other than that.....things went pretty well.

[QUOTE=kygorski;472857]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]

WHAT do you suppose happened to all those Enron energy traders when Enron collapsed. They had THOUSANDS of traders who learned from the BEST how to cook the books and push the "legal" limits. When they were all out of a job, they went to the next best place. BIG BANKS...........At the BIG BANKS, they practiced their trade, and were **** good at it.......so good that the collapsed quite a few of them.

The AMERICAN PEOPLE are just as guilty as the greedy traders. Americans bought houses they could not afford. Americans went out and got 2nd and 3rd mortgages at 125% of equity. AMERICANS went out and created a debt vacuum for themselves.

Hopefully, we can figure a way out of this and start moving towards the AMERICAN DREAM again............

Later,

Geo

[QUOTE]
Policies were put into action way back when(maybe during Clinton? Carter?)
[/QUOTE]

CRA.......created by Carter...........renewed by Bush 1, Bush 2, and Clinton. THEY are all guilty....Except for Reagan, he tried to repeal it.

Later,

Geo

Thanks for all the information guys. Really appreciate it. What a mess and I sure hope you folks can dig yourselves out of that mess that was made.

[QUOTE=Big Gills;472925]What a mess and I sure hope you folks can dig yourselves out of that mess that was made.[/QUOTE]

To much government involvement in this country....there isn't telling how many years went by that some people in this country made it their goal to get a nice cushy job with the government...Government kept creating positions and job titles....heck now we have probably more government employees than we do civilian employee's. To many government benefits paid to the employee's, etc...large government salaries in some of the positions. The politician man has wreaked havoc all across the land. If a man can make himself some tax free money now days I'm all for him...so what if he makes a couple of thousand each year right out of his own back yard, maybe doing a little mechainc work on the side or auto body repair...or...OR...maybe he makes a couple thousand out of his garden growing some of Kentucky's finest cash crop, who freakin' cares...if the american working man ain't making it for HIMSELF then he's just going to give it away (litertally) to some suit in the government house. And we all know what stupidity happens when the suits get hold of our money.

This may or may not have anything to do with this thread....I'm just worn out on Government, Fannie, Freddie, Pelosi, Nobama, Abramson, David Williams, you name it...

I've had it with hearing people say too much govt, or state, or court, or police involvement.

The only reason these people get involved is because we don't know how to control ourselves. Animals vs tenders.

[QUOTE=HURRICANEBOB;473009]The only reason these people get involved is because we don't know how to control ourselves. Animals vs tenders.[/QUOTE]

Speak for yourself...

[QUOTE=Chubminnow;472927]heck now we have probably more government employees than we do civilian employee's. [/QUOTE]
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I remember reading something some years back that stated half or so of all paychecks and/or benefits were paid by the government.... I don't believe the government can sustain us all...