Fannie and Freddie

[Big Gills]

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

[kygorski]

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"

[Bobby Headrick]

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.

[GeoFisher]

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"

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

[DJD]

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

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.

[GeoFisher]

Policies were put into action way back when(maybe during Clinton? Carter?)

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

[Big Gills]

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.

[Chubminnow]

What a mess and I sure hope you folks can dig yourselves out of that mess that was made.

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...

[HURRICANEBOB]

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.

[Chubminnow]

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

Speak for yourself...

[Hlleonard]

heck now we have probably more government employees than we do civilian employee's.

--
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...

[pontooner]

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

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.

http://www.ritholtz.com/blog/2011/07...ousing-crisis/

"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.