why are e going to bail out the two largest subprime lenders?

[hate2bL8]

Why Bail them out after all they got us in this mess with thier dubious lending. Why reward bad behavior?One congressman said today do you reward the kid on the block after he breaks a window by giving him a larger bat? thoughts...(Fannie May Freddie Mac)

 

[clippyrip]

It's corporate welfare.

 

[BoilerUP]

Probably for the same reason the government bailed out Bear Stearns...if they fail, the whole house of cards that is the US financial sector will likely be close behind.

 

[BushwickBill]

Because if we dont the foundation of our economy will crumble. No loans: no construction, no development, no real estate etc.

Personally I can't wait to hunt for lunch and have my own personal fifedom. First thing I'm going to do is kill all the rich people in my neighborhood when our society falls apart.

Its happening much faster than I thought.

LOL just wait until GM falls apart. GM's retirement fund is broke. They are just letting the dance go on as long as possible.

In 8 short years our government has ruined our country.

 

[JumpJetter]

why are e going to bail out the two largest subprime lenders?

Why Bail them out after all they got us in this mess with thier dubious lending. Why reward bad behavior?One congressman said today do you reward the kid on the block after he breaks a window by giving him a larger bat? thoughts...(Fannie May Freddie Mac)

Just so you know, Fannie Mae/Freddie Mac DO NOT purchase subprime loans.

 

[hate2bL8]

yes you might be right im not an economist but i do no they lend in the secondary market(subprime) which is what got them in trouble.In adition from what I understand they are a spuedo private company that pays "0" tax go figure!!

 

[Poahi]

Remember what happened in the 80's? The interesting thing with the loan crisis is that we never learn from history. When you relax underwriting standards everything is great as long as real estate prices creep up. When adjustable loans went higher, we re-learned that there must actually be an ability to repay a loan. Don't worry, 15 years from now, the cycle will repeat itself again.

 

[zkmayo]

The two companies hold or guarantee more than $5 trillion in mortgages -- almost half of the nation's total.

Anytime youre dealing with trillions, the govt going to get involved if its shaky. Unprescedented...

 

[Thebadcat1313]

Fannie and Freddie are victims of the subprime mess to the extent that subprime loans and their defaults have lowered property values across the board. That has made the good, conservative loans that they guarantee worth less than they should be, at least temporarily. If these organizations were to fail, we'd be looking at the next great depression that would make the current situation look like a party.

 

[getonit]

Fannie and Freddie are victims of the subprime mess to the extent that subprime loans and their defaults have lowered property values across the board. That has made the good, conservative loans that they guarantee worth less than they should be, at least temporarily. If these organizations were to fail, we'd be looking at the next great depression that would make the current situation look like a party.

Something that everybody is ignoring is that property prices never should have spiraled up like they did. The people who buy in at the high end are the ones getting burned. Why should I as a person who didn't buy get stuck with the bill for paying for the greedy short sighted people?