White House declares Fannie, Freddie model 'dead'

Financial Post ^ | 2/11/11 | Lorraine Woellert and Rebecca Christie

[EBH]

The report delivered Friday by Geithner and Housing and Urban Development Secretary Shaun Donovan presents three approaches for a future housing finance system. It also calls the government to shrink “and ultimately wind down” Fannie Mae and Freddie Mac, the bailed-out government-sponsored enterprise companies that helped fuel the housing bubble before being felled by investments in subprime mortgages.

“This is a plan for fundamental reform -- to wind down the GSEs, strengthen consumer protection and preserve access to affordable housing for people who need it,” Geithner said in a statement accompanying the report. The report also pledges ongoing U.S. government support to make sure Fannie and Freddie can meet any debt or other financial obligations.

[RocketRoland]

The Democrats created this mess and it is the direct cause of America’s failing at this moment and we may never get over it. Go on youtube and look at all the Democrat hype,coverup and see the true cause of America’s demise.

[Tublecane]

Ultimately wind down? Why do these things still exist?!?! What is the matter with government? End them now!

By the way, the matter with government in this case, no doubt, is that Fannie and Freddy are padding someone’s bank account, and that and that alone is why they still exist.

[WOBBLY BOB]

“wind down” ...like the phone tax for the Spanish-American war?

[NavVet]

Where will washed up Dem politicans go to get multi-million dollar bonuses?

[WOBBLY BOB]

There’s still HUD and the EPA.

[Paul Ross]

Now that the WH has acknowledge the non-vaibility thereof, the perpetrators and perpetuators of the frauds DEFENDING these criminal scams and their operators need to be called to account.

Unfortunately, that can't happen until Obama is removed, and a true kick-ass conservative President and Attorney General go after them. Like Barney Frank, and all the Clinton appointees...such as Rahm Emmanuel.. for example.

[snowrip]

1) The democrats caused the financial mess.

2) Democrat support and protection of Fannie and Freddie has been continuous, overwhelming, and without question. Ever.

3) Any message from this administration that says “It’s time to pull the plug on F and F” is a lie.

It is a lie because it flies in face of both the legislative history and hiring practices of the democrat party and the Obama administration. It is a lie because it contradicts every public statement made by the democrat party with regards to fannie and Freddie. Finally, it is a lie because it is coming from the the lyingest bunch of liars in the history of American government, and that is really saying something.

[liberalh8ter]

Wonder how many Rats will refi through Freddie and Fannie right before they fold them. Dodd is probably holding real estate seminars in his office right now.

“Irish cottage prices at an all time low - coupled with attractive Dem incentives from Freddie and Fannie and it's a real estate win-win, let ME show you how.”

[Uncle Miltie]

On the bright side, ending Fannie and Freddie will be the first useful step by the government since the Financial Crisis began over 2 Years ago.

Everything else they’ve done has been an unmitigated disaster.

[HwyChile]

The only reason Obama is saying this is to undercut the republican reform effort. The democrats know there is no way to defend keeping Fannie and Freddie and that they will look like fools if they try, so they are jumping on the bandwagon with gritted teeth to say they need to be dissolved. In other words, they did not want the fight to protect Fannie and Freddie and they did not want the GOP to get the credit for getting rid of them. It is a lot like Clinton when he jumped on the “welfare reform” bandwagon to undercut a winning issue for republicans.

[Georgia Girl 2]

Way past time for the Government to get out of the mortgage business.

[Iron Munro]

TRANSLATION FROM GOVERNMENT DOUBLE-SPEAK:

"The sheeple have finally wised up to this government wealth redistribution scheme.

We have milked it all we can.

It's time to create a new scam."

[AmusedBystander]

I’m sure whatever Obama replaces them with will be so much better and not cost the taxpayers a dime. After all, Oprah says he has a good heart.

[EBH]

Or if they fold F&F will this drop these forclosure homes into the banking market again? Not sure how this actually works out...do the people who had mortgages just ‘win’ their free home? Or will the original mortgage lenders go after them thereby creating another circus?

[SVTCobra03]

I will believe it when Dodd and Frank are on national TV in orange jump suits and leg irons doing the perp walk.

[EBH]

Well this will be interesting if anything...

Fannie and Freddie Dead

IMF looking to drop the dollar as a world currency

Egypt falls

I don’t have enough hands, feet, fingers, or toes to keep up at this point. Things are moving very fast and lots of stuff slipping under the radar due to Egypt.

[IrishCatholic]

That’s my understanding of it. They’ve milked it dry, now it’s time to move on.

[Ann Archy]

Oh PLEASE!! They will be asking for BILLIONS MORE for Fannie and Freddie!! The REGIME says BOTH SIDES of EVERY ISSUE!!

[pacpam]

Why keep FM and FM when the Fed government will effectively control formally private banks with regulations that demand they throw fiduciary responsibilities aside to fund directly what FM and FM only bought to take off the banks’ books. The slide into totalitarianism has just gotten steeper.