http://news.yahoo.com/s/ap/20080908...ants_crisis;_ylt=As1Sqqd_7iTmwoKeRefjHiZI2ocA
WASHINGTON - Uncle Sam has just become the 800 pound gorilla in the U.S. mortgage market. The Bush administration is seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis.
But private analysts worried that it may not be enough to stabilize the slumping housing market given the glut of vacant homes for sale, rising foreclosures, rising unemployment and weak consumer confidence.
Mark Zandi, chief economist at Moody's Economy.com predicted that 30-year mortgage rates, currently averaging 6.35 percent nationwide, could dip to close to 5.5 percent. That's because investors will be more willing to buy the debt issued by Fannie and Freddie — and at lower rates — since the federal government is now explicitly standing behind that debt.
"Effectively, the federal government has now become the nation's mortgage lender," he said. "This takes a major financial threat off the table."
Officials announced Sunday that both Fannie Mae and Freddie Mac were being placed in a government conservatorship, a move that could end up costing taxpayers billions of dollars."
The govt is an endless pot of money to fix problems created by unethical corporate types apparently.And make no mistake that is what caused this.The execs at fannie and freddie saw much bigger profits and thereby bigger compensation for themselves by going into riskier aspects of the mortgage buisness.Both parties did nothing due to lobbying to prevent this.
At some point probably soon they won't have the credit/money to keep bailing out every bad scheme they have gotten us into.
The one thing I would really like people to see in all this is as bad as you may think politicians are, the people that you can't trust even more are the corporate types and the influence and lobbying they do that corrupts everything they touch.My eyes just roll when I hear people say they want the govt run like a buisness.Remember the real big time crooks in this country get their clothes at brooks brothers lol.Just look at how well these corporations have done with our health care system.We spend twice as much per person as any other country and don't even cover everyone,we are being robbed!!!!!!!!!!!!!!!!!!!!!!!!!:eek:
WASHINGTON - Uncle Sam has just become the 800 pound gorilla in the U.S. mortgage market. The Bush administration is seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis.
But private analysts worried that it may not be enough to stabilize the slumping housing market given the glut of vacant homes for sale, rising foreclosures, rising unemployment and weak consumer confidence.
Mark Zandi, chief economist at Moody's Economy.com predicted that 30-year mortgage rates, currently averaging 6.35 percent nationwide, could dip to close to 5.5 percent. That's because investors will be more willing to buy the debt issued by Fannie and Freddie — and at lower rates — since the federal government is now explicitly standing behind that debt.
"Effectively, the federal government has now become the nation's mortgage lender," he said. "This takes a major financial threat off the table."
Officials announced Sunday that both Fannie Mae and Freddie Mac were being placed in a government conservatorship, a move that could end up costing taxpayers billions of dollars."
The govt is an endless pot of money to fix problems created by unethical corporate types apparently.And make no mistake that is what caused this.The execs at fannie and freddie saw much bigger profits and thereby bigger compensation for themselves by going into riskier aspects of the mortgage buisness.Both parties did nothing due to lobbying to prevent this.
At some point probably soon they won't have the credit/money to keep bailing out every bad scheme they have gotten us into.
The one thing I would really like people to see in all this is as bad as you may think politicians are, the people that you can't trust even more are the corporate types and the influence and lobbying they do that corrupts everything they touch.My eyes just roll when I hear people say they want the govt run like a buisness.Remember the real big time crooks in this country get their clothes at brooks brothers lol.Just look at how well these corporations have done with our health care system.We spend twice as much per person as any other country and don't even cover everyone,we are being robbed!!!!!!!!!!!!!!!!!!!!!!!!!:eek:
f course that leaves very little for all the other things the govt does like defense,taking care of infrastructure ,disasters ,etc..
