Monday, January 20, 2014

Refighting-the-mortgage-wars-could-bring-new-risks-to-the-housing

aroadrock  Jan 19, 2014 12:56 PM Flag

washington post

refighting-the-mortgage-wars-could-bring-new-risks-to-the-housing-

What the government did for Fannie and Freddie, in effect, was no different than what it did for the banks. Yet while the banks have re-emerged as profitable, well-capitalized private companies whose shareholders have done well in the past few years, Fan and Fred remain captives of the government, their assets and profits confiscated and their shareholders effectively wiped out. The government’s use of Fed and Fan as a piggy bank has become so egregious that the bottom-fishing hedge funds that now hold most of their shares have a good chance of prevailing in lawsuits against the government alleging illegal and unconstitutional seizure, an outcome that could cost taxpayers tens of billions of dollars in damages.

Thanks for posting - Great aticle by Steven Pearlstein, Washington Post

He summarizes the issues and provides a good perspective.

I easily found the article by web seach "Washinton Post & 
refighting-the-mortgage-wars-could-bring-new-risks-to-the-housing"

"It is hard to understand why Warner, the senior senator from Virginia, would demand the liquidation of Freddie Mac, one of the largest employers in his state. Instead, he ought to be joining with the rest of the region’s politicians in demanding that Fan and Fred be reformed, recapitalized and preserved as part of a new and more competitive housing finance infrastructure anchored in Washington, not Wall Street."

Great post. Best quote from the article :

" The government’s use of Fed and Fan as a piggy bank has become so egregious that the bottom-fishing hedge funds that now hold most of their shares have a good chance of prevailing in lawsuits against the government alleging illegal and unconstitutional seizure, an outcome that could cost taxpayers tens of billions of dollars in damages. "

FNMA Fills pigybank, Henry, Timothy and Lloyd drain Piggy Bank to WS Banks through Secret Tax Breaks, while Jack and Barack watch. High Fives Everyone!....Think of FNMA as the water line on the boat. Once that disappears under water your ship the U.S America has taken on to much water and is on its way to sinking..... And the tribe is sailing off to China, an Armada of Mega Yachts

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