Posted on 03/11/2014 9:16:53 PM PDT by jyro
Mortgage lenders Fannie Mae and Freddie Mac tumbled Tuesday on news of a deal to close them down. Both stocks lost about 40% of their value in one hour. An announcement of the deal, crafted by the Senate Budget Committee's top Democrat and Republican, did not disclose a timeline for the closure but said a draft of the legislation would be released soon. It is likely years away from its final approval. With multiple bi-partisan efforts and the support of President Obama congress managed to dissolve billions of investors retirement funds.
Anyone who invested in these outfits should have their heads examined.
This should have been done years ago.
Wow, I actually agree with this.
I’m sure the senators that were heavily invested in this were out of the market by the time this hit...... Dodd, etc..
I do too. On the other hand, I find it hard to believe that statists, central-planners, and leftists will simply give up such powerful entities that can rig markets for political purposes and deliver such huge amounts of cash in patronage. I know Fannie and Freddie were total disasters, but that won't dampen leftists enthusiasm for a heavy state role in the housing market. I just wonder what they will propose instead?
So what happens to their assets? My mortgage was sold to one of them years ago and I have been paying payments to a bank that services the account for them.
rumors of a draft of legislation that hasn’t even been approved causes a panic sell-off in one day? something smells
“I just wonder what they will propose instead?”
Probably something like commie-care. Force everyone to buy a house. Those that can’t afford it will be subsidized.
what’s next, cancel FDIC?
The only reason Fannie and Freddy ever got in trouble was because of Congress placing mandates for borrowing on them forcing risky loans.
“Wow, I actually agree with this.”
Congress being Congress, I suspect you’ll like what they ultimately do even less. I can foresee them lending directly from the taxpayers pocket to the special needs extreme risk voters.
Refinance to a local bank that you know will hold the mortgage.
“The only reason Fannie and Freddy ever got in trouble was because of Congress placing mandates for borrowing on them forcing risky loans.”
It is incredible that banks were forced to lend to high-risk borrowers (despite their reservations), then were accused of exploiting those same borrowers when the inevitable occurred.
exactly my view, why don’t more people know simple history.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.