I'm watching the CBS Evening news (Saturday night)  and they say it's "FOR SURE"...... my oh my

Both GSA were privatized in order to decrease the national Deficit back in the 60's after the Vietnam war ... so I would not be surprised if our debt will increase by taking them over ... the sad thing is WE are the people and that means we will have to sustain a larger debt to be inherited by the next 10 generations :(

The reason for the privatization was so that we could deficit spend the Vietnam war and have a better balance sheet to support more debt.....

If this is as true as Christine says, then we may have just doubled the national debt. any bail out will be to cover the risks of our international investors.....we are a debtor nation now

Howard

It is another mis-manged arm

I think we all expected a bail out unfortunately very few people realize exactly what this means.  I really do believe that the dollar is about to fall thru the floor.  Thanks for the poat.  www.vizionkc.com

If everyone would stop running  around with their hair on fire, this would not have been necessary.

Fannie and Freddie are the only reason lower and middle class working people have been able to purchase homes for the past 25 years. They are the reason there has been a stable interest rate market, These 2 entities were forced to purchase the WALL STREET  HI-HO loans, and that is why they are sucking wind those loans did not meet their guidelines so,

When the 100% conventionals started in 1995, FNMA and FRED would not purchase them, Wall street Lobbyist went crying to Congress and Congress, made them buy a certain percentage of these loans,

So Builders could sell their well overpriced homes(not eligible for FHA VA limits) and Wall Street could continue to churn your 401 K and IRA Accounts into the Builders, putting up 500,000 houses that were worth 200,000, and the public loved it.  They could all live in a 500,000 house, with no money down.

Our Government pushed and approved all these lenders, ie: Wall Street money, so all Americans could own a home,,,,, whether they could make the payment or not.

This is a Government backed problem and yes the Government should solve it, and taxpayers have been backing all the HUD mortgages,  for years who do  you think FHA is?  

It's the Government, HUD puts their foreclosures on the Market for 40% below actual neigborhood value and have been losing Millions for Years..... Haven't heard anyone crying about this.

Home prices have been too high for 10 years, the  loss of equity, was AIR anyway inflated by greed and upward wind motion, not actual value, and the public jumped onto the Real Estate Band Wagon for the big kill, not to own a home, which should be a minimum of 5 year investment, they have been buying the big houses, thinking they would continue to go up, milk out the profit with a 2nd lien, or flip it out in 2 years tax free(if its their homestead) They did not buy to live, they lived to buy.

But letting FNMA and FREDDIE die, or putting them out of business will be the end of Real Estate for the common man. As Rhett Butler said, to Scarlett when the ragged Confederate army was holding them up from leaving Atlanta, "I wouldn't be so anxious to see them go my darling, they are the only thing holding back the Yankees from destroying Atlanta".  If you think the banks will loan money to Bob and Mary for their 100,000 home, without FNMA and Freddie buying the paper, you are in for a Career Change as very few people in this country have the where with all to put down 20%, and that means, FHA only and all seller's will have to do repairs to their houses, they can't afford to meet FHA requirements, so it will cost everyone. AND FHA/VA have limits, so that leaves Conventional lending, and we will be back to 16% interest rates on home loans, for those of you who sold in the 80's.   

So unless you were around in the 60,s and 70's when you either purchased with 20% down, or through VA, or FHA, or you did not purchase, then you don't understand what FNMA and FREDDIE do for the homebuyers and Real Estate Market.

And this cost is minimal compared to the special interest groups hand outs Congress and Senate have been doing for 20 years, this is the basic, man needs shelter, of course we could just go back to the Feudal System, where the King owns it and we all rent it from the KING.

"letting FNMA and FREDDIE die, or putting them out of business will be the end of Real Estate for the common man.:" 

Thats a super point...this was more than policy it was a promise of the American Dream.

"I wouldn't be so anxious to see them go my darling, they are the only thing holding back the Yankees from destroying Atlanta".

So is this...we have to tread lightly. This is big enough to knock us off of our global position. Greatness cant be based only on military might. I think our place in the world is at risk and we need to tread carefully to maintain our financial credability. Our strength rests on this at least as much as anything else.

Howard

"letting FNMA and FREDDIE die, or putting them out of business will be the end of Real Estate for the common man.:" 

Thats a super point...this was more than policy it was a promise of the American Dream.

"I wouldn't be so anxious to see them go my darling, they are the only thing holding back the Yankees from destroying Atlanta".

So is this...we have to tread lightly. This is big enough to knock us off of our global position. Greatness cant be based only on military might. I think our place in the world is at risk and we need to tread carefully to maintain our financial credability. Our strength rests on this at least as much as anything else.

Howard

I'm encouraged that they BOTH have new mgmt at the top with former high-end executives with financial and stock market experience....the reason this must happen is to keep the value of the dollar and not discourage over-seas investment in our stock market.

Just like Chrysler bail out, this will be over in 12 to 18 months.

If it helps the current mortgage debacle where no one knows what loans to write or has a clue to mortgage guidelines, I'm happy!! 

I hope Wallace is right about this being over in 12 to 18 months but I will never believe that until I see  it.   It's like losing your sight or your ability to walk, you never get over it.  You may learn to live with it but you are permanently maimed from it.  Howard, what do you think the ripples will be from all this?

Ricki - Government has been baling out or subsidizing industry for YEARS!!! They just bailed out Bear Stearns.....to shore up the financial markets.  I'm glad is it US rather than THEM = China essentially buying our homes!!!

This is for Ricki  - we may see cheaper rates on mortgages because this should bring liquidity back into the sysytem. The explicit backing of the US Govt. should assure investors and hopefully, the securtized mortgages will look a little less risky...