what an unusual sight. sanity reigns, for the moment at least, in our nation's
capital.
Paulson: Keep Fannie and Freddie in Current Form
Treasury Secretary Paulson favors keeping Fannie Mae and Freddie Mac in current form
Treasury Secretary Henry Paulson, seeking to calm nervous investors about the financial state of Fannie Mae and Freddie Mac said Friday the government's primary policy focus currently is to leave the congressionally-created mortgage giants intact.
"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission," Paulson said.
The financial health of the two companies is of critical concern to Washington policymakers because of the crucial role they play in the housing market.
The pair hold or guarantee around $5 trillion worth of mortgages. That's roughly half of the $9.5 trillion debt of the United States. The fear is that a failure of one or both would wreak havoc on the nation's financial system and the broader economy as well.
Paulson's comments came amid reports that the government was considering a plan to take over one or both of the companies and place them in a conservatorship.
More
if anyone deserves a bailout, its fanny mae & mac...
unless of course you want the great depression all over again ??
What the hell good would "rescuing" a failed business model from it's own incompetence with a re-re-re-re-incarnated, failed government policy (the New Deal) do? Yeah, if Fannie Mae and Freddie Mac fail it'll hurt some, BUT THE NATION WILL SURVIVE AND OVERCOME. We can't say the same if we continue to chain ourselves to provable useless Progressives' programs whose sole REAL purpose is to pander for the votes of the politically illiterate.
Ok, while I don't think it is the end of the world, it certainly will create difficulties that EVERYONE feels, defiant. We can agree that a bailout is not wise, however we should be realistic about the repercussions of this and it will have repercussions for ANYONE who seeks a loan on a home without substantial cash(and I'm not talking your conventional 20 percent down either) down. That's probably most homeowners currently, even the responsible ones, and especially those starting out in a home for the first time. Without a housing market, fluidity of movement is restricted, and local economies become even more important as people are basically strapped to a home they can not sell and without the resources to buy another home at a new place if they relocate. ON top of that, without that fluidity, people don't have the freedom anymore to relocate to areas that actually have a good local economy. They are now, basically, stuck.
Now, I'm not saying I disagree with this movement, but it will indeed have repercussions for people not involved in the whole foreclosure mess and this won't be a 'little thing' that is over in a few months folks. It will last for a while and it will get worse before it gets better.
