Fannie an Freddie might be down in the polls but they have another life.
Let us ask the question of how those who have propogandized the demise of Fannie and Freddie will move to get rid of them?
Watch out for tea party types trying to redline to the right and nock a few extra congressional seats out to weaken Democrats as the move to revamp the big two picks up speed now that it was overpasses in the recent financial overhaul.
With nine of ten loans now government backed thats playing with millions of our equity! Can you say a double dip recession?
Maybe the Republicans can tear up Fannie and Freddie and jam up the loan markets further just in time to get another housing crash and keep us all in a recession for their benefit of taking the white house in 2012??
So when you cheer on a Fox News heads critical thinking – think again.
Think about your own equity.
Fannie and Freddie might need a makeover but the need for them is ever present – the housing market is wobbly.
Besides if we got rid if Fannie and Freddie…. Fannie and Freddie still own HUGE portfolios of troubled loans.
What would we do with those?
Would private investors mop that up for us?
Fannie expects to lose money on the loans it acquired in every year from 2005 to 2008 — these assets still make up 47 percent of its total holdings!!!!
Can you say alot of SHORT SALES!
Support continuing Fannie and Freddie and keeping a Quasimodo government and private mix in the lending industry.
Just think if all those ARM loans about to RESET!
The companies cannot be completely shut down until those losses are absorbed, a process expected to drag on for years…. So all this talk that they are going to be totally revamped by Geitner in January is likely to be marketing gimmicks.