Posted on 08/06/2013 11:53:45 AM PDT by ColdOne
President Obama will urge Congress to shutter Fannie Mae and Freddie Mac, the mortgage-giants bailed out by the government in 2008, as part of a strategy to buffer taxpayers from future housing market downturns.
In a speech Tuesday in Phoenix, Obama will call for transitioning the business model of Fannie and Freddie into a system where "private capital must be wiped out before the government pays on any form of catastrophic guarantee," a senior administration official said.
Obama will also renew his calls for sweeping mortgage refinancing legislation when he travels to Phoenix Tuesday. Arizona's desert capital was the epicenter of the housing crisis that began in 2008, but the market there has rebounded strongly, with home prices up and foreclosures down.
(Excerpt) Read more at foxnews.com ...
I am not tracking with this. Who is going to assume Fred & Fran’s assets and or liabilities?
Sounds to me like Obama is lookin for a donor to take over, they will declare bankruptcy, they will get a bailout and bonuses and we will be stuck with the bill.
What the hey? Is obambie trying to get more control over the private sector (banks)?
I’m confused about something. The article says Fannie/Freddie guarantee loans against default. IIIRC Fannie didn’t start out that way. They packaged mortgages together and sold them as bonds. Anyone knowledgeable on this issue. Did Fannie historically guarantee against default? Were they legally obligated to when the housing bubble burst?
You can rest assured this is angled towards "Homeownership" for Holder's People, somehow, with Taxpayers getting stuck with the Mortgages.
Reparations by another name (like "Pigford"), and the Banks who fund these Politicos are insuring they make more money and take NO RISK.
This sounds better.
What’s the catch?
Are we taxpayers still on the hook after private capital is wiped out?
Eliminating these two misbegotten groups is a good idea, but something worse is about to take its place when a collectivist makes the proposal.
What am I missing here? Obama calling for the Government to shut down a major government role in the housing industry?
When Progressive schemes fail, and this failed miserably, the reaction on the Left usually is to double down, or seek full Government control and/or nationalization.
Besides health-care and labor, housing is usually one of the favorite ways for leftists to assert their control over private economic decisions.
I guess the Rats have determined they have pilfered these Agencies for as much as they cam. Time to shut them down and burn the evidence. Fannie and Freddie made multi millionaire’s out of countless Demonrats while all the while operating in the red.
I have zero problem with what it sounds like 0dumbo is calling for.
The private enterprise be responsible for the success and failure of lending on mortgages but DO NOT force private enterprises to loan to credit shaky people.
Don’t cry about low income people not being able to get mortgages.
This can’t be true ... Too Many Raindrops.
Just got back from a meeting in downtown Phoenix, saw AF1 on final. Cool seeing AF1, but I’m sure someone caught my look of disdain...
“Obama will call for transitioning the business model of Fannie and Freddie into a system where “private capital must be wiped out before the government pays on any form of catastrophic guarantee,” a senior administration official said. Obama will also renew his calls for sweeping mortgage refinancing legislation”
Wrong on every count as usual, Obozo.
Terminate Fannie and Freddie, as in stakes through their hearts. In case that thought can’t work its way between those ridulous ears of yours, I mean KILL BOTH PROGRAMS.
And the only “sweeping mortgage refinancing legislations” needed is the federal government getting out of regulating mortgages, period.
The free market will run 99% better with no federal government involvement.
” I guess the Rats have determined they have pilfered these Agencies for as much as they cam. Time to shut them down and burn the evidence. “
One FReeper who gets it : )
And some people say they didn’t ‘nationalize’ the banks. Harumph.
If you can control assets and actions through legislation, you don’t need for the government to own the ‘means of production’ to call it ‘socialism’ or ‘Corporatism’.
Just come out of the closet, Obama.
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IOW Obama wants to conceal the crony profits.
Turn the Usa into a nation of sharecroppers. IOOW slaves.
Indeed, the FED controls the banks, and we subsidize them.
This is the clear signal that we will be ‘Cypressed’*. Of course, those closest to the top will receive timely notice and be able to protect their assets.
*http://www.tnonline.com/2013/mar/30/let-events-cypress-be-warning-us
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