Skip to comments.Republican Proposes New Corporation to Replace Fannie, Freddie
Posted on 12/07/2011 10:47:23 PM PST by rabscuttle385
A Georgia Republican is set to introduce on Thursday a bill that would replace Fannie Mae and Freddie Mac with a government-owned corporation that could one day be sold off to the private sector.
The proposal from Sen. Johnny Isakson, a former Realtor, is the latest in a series of competing measures to address the fate of the mortgage-finance giants whose government takeover has cost taxpayers $151 billion.
To take the place of Fannie and Freddie, the bill would create a new government agency that would provide guarantees on securities comprised of mortgages that meet designated standards. Unlike Fannie and Freddie, the new agency wouldn't buy loans directly, but instead would guarantee mortgage securities pooled by private sector entities.
Mr. Isakson's measure would place Fannie and Freddie into receivership, a form of bankruptcy restructuring, within 18 months of the bill's enactment, and the firm's assets would eventually be liquidated.
(Excerpt) Read more at online.wsj.com ...
No No NO!!!
Government is the PROBLEM people! We need to get the government OUT of the mortgage industry.
Ahem... 151 Billion? I would not be sweating FM/FM if their liability was 151 Billion. Given our other, how shall we say, spending issues, it’s a mere drop in the bucket at that cost. I would surmise that the true cost of that operation was likely well over 1 Trillion, a cost hidden even by the media. It’s laughable to see these numbers reported as if they are accurate.
I pray for our Country... Tough times ahead.
As stink rose by any other name.