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Posted on 01/23/2010 9:39:25 AM PST by DogByte6RER
Fannie Mae, Freddie Mac Should Be Eliminated, Frank Says
By NICK TIMIRAOS And MICHAEL R. CRITTENDEN
A top House Democrat on Friday said his committee was preparing to recommend "abolishing" mortgage-finance giants Fannie Mae and Freddie Mac and rebuilding the U.S. housing-finance system from scratch.
"The remedy here is...as I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," said Rep. Barney Frank (D., Mass.), the chairman of the House Financial Services Committee.
His comments initially rippled through bond markets on concerns that the government might pull away from the mortgage market. Many believe that's unlikely and that any revamp would include continued government involvement. The government took over the companies in September 2008 as loan losses mounted.
Some Republicans have argued that the companies should ultimately be reduced in size and privatized, while at other end of the spectrum, some analysts have recommended turning the companies into government agencies. But several industry groups and academics have suggested that the government is likely to continue playing at least some role in the future of the companies.
One such report came from analysts at Standard & Poor's this past week. "It's hard for us to imagine" how enough capital could be attracted to replace Fannie and Freddie with stand-alone private companies that would be able to offer low-cost funding for 30-year fixed-rate mortgages, the analysts wrote.
(Excerpt) Read more at online.wsj.com ...
Barney Frank will use this ploy to further entrench government power through cronyism.
Fannie Mae and Freddie Mac should be cut loose from the apron strings of Big Government and allowed to fail, then be split up and sold off in pieces.
Toss Fannie Mae and Freddie Mac to the free market forces of creative destruction.
kill them quick before the get investigated
What did Barney say about Freddie’s Fannie?
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As if their first attempt didn't bankrupt us enough.
Yup,
Imagine these lunatics saying “ let`s have a Constitutional Convention “ !
Government is not the answer to a problem, IT IS THE PROBLEM. Barney Hack just wants to replace the current system with more of his friends and heavier government control.
I think it’s a great idea to dismantle these government-run corporations and return all this mortgage business back to the private sector...
What? WHAT???
Barnie’s Frank wants to create ANOTHER government-run mortgage corporation???
Now that’s just plain stupid.
YEAH...that’s PERFECT....let the idiots who destroyed the mortgage system create a new one! BAAWWAAAHHHH....do they really think enough people are stupid enough to buy this? Dodd and Fwank should be tarred and feathered and put in the locks.
So the people, like Barney Frank, who created the monster know as Fannie/Freddie think the solution is for them to create a new monster?
Better idea, fire the people, like Barney Frank, who created the monster in the 1st place.
Sounds nice; except that whatever Frank has in mind for replacing them will be even worse (if such a thing were even possible).
private companies that would be able to offer low-cost funding for 30-year fixed-rate mortgages,
...and what pray tell does this mean. If they can’t, then what ignorant moron would suggest the government go out of its way to do what the private sector couldn’t, shouldn’t, or wouldn’t do for very good reason. Barney Freak and Chris Dudd come to mind.
I smell a rat.
Indeed you do!!!
Words fail me.
That is exactly right. The cost to the taxpayers would be astronomical which is exactly what the communists want. More destruction of our economy.
Basically, if fruitcake frank wants it, DO NOT TOUCH IT.
Fanny and Freddy did just fine until the communists forced them to cover a truckload of bad mortgages. Correct that and we will have the original system back and it will work just fine. It used to be among the most solid of investments and can be again if the communism is kicked OUT of it.
What ever the new monster is they will still want it making foolish loans to people who shouldn’t be buying houses.
Fannie and Freddie by relaxing down payment standards and rasing the limits on their loans became a dominate factor in the market..both for the amount of loans and the upward price of starter and middle class homes..and they are still doing it. They are trying to prop up home prices with easy terms, high loan limits and low interest loans. We already have a big subsidy for realestate by allowing interest deduction.
If so....fire him!
If not...disregard his stupid comments...isolate, then eliminate.
Maybe they can coax Jamie Gorelick out of her very cushy retirement to run it.
“I smell a rat.”
Same here, and I’m 100% opposed to sending American dollars down more government ratholes. When we did this with Fannie and Freddie, we nearly collapsed the entire World financial markets.
Frank’s a representative. He’s up for re-election every two years.
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