[billva]

It frustrates me that I work hard to pay my mortgage, have never missed a payment, and understand the value of my investment. I know my mortgage was sold on the secondary market and is now part of a failing financial institution that must receive a bailout.

Now, here's were this story is most troubling...Fanny and Freddie ARE government institutions. Are we witnessing an incredible, historic, unprecedented concentration of control and wealth that is being under or mis-reported by the media????? That's my bet.

I'm curious as to just how this is going to negatively affect you?

[cliniclinical]

If you mean in terms of my personal mortgage, it will not.

The point of the first paragraph ties a bit with the second. MBS are a major financial backbone in the US. It's just another version of the classic technique; create the problem through purposeful action, then offer a solution to said problem that is unfavorable, but 'necessary'. Done correctly, the innocent never realize they gave away their freedom to the very institutions that created the problem in the first place.

It's open war on America, right now. And it looks like we are going to lose without a single shot being fired...

[Greysard]

how this is going to negatively affect you?

If banks can't sell the mortgage quickly (to likes of FNM) then they won't be offering any such mortgages. A mortgage is a long term loan, and banks just don't have the capital to freeze it for 30 years.

As result, a common man can't get a mortgage. Houses will be bought for cash only, which eliminates new homeowners, and those who want a larger house (or in a more expensive market.) The average price of a typical home will drop somewhat, following the lack of buyers. This will result in "house as an investment" schemes being thrown out of the window, and most people will see their assets reduced. Those who still pay mortgages may be forced to send the jingle mail (lose the house) because the property is no longer worth owning and paying for.