--- In FairfieldLife@yahoogroups.com, "richardatrwilliamsdotus" <richard@...>
wrote:
>
> > > Thanks to people like Barney Frank, Fannie and Freddy
> > > had their hands in 50% of the U.S. home mortages
> > > - they came very close to bringing down the whole
> > > international banking system.
> > >
> authfriend:
> > No, they didn't. Please read the Wikipedia article I
> > recommended to John and inform yourself:
> >
http://en.wikipedia.org/wiki/Government_policies_and_the_subprime_mortgage_crisis
> >
> > http://tinyurl.com/7t9e5uz
> >
> > Fannie and Freddie contributed very little to the crisis
> > compared to the investment banks' heavy involvement in
> > mortgage-backed securities (derivatives):
>
> > "The Financial Crisis Inquiry Commission reported in 2011
> > that Fannie & Freddie 'contributed to the crisis, but were
> > not a primary cause.' GSE mortgage securities essentially
> > maintained their value throughout the crisis and did not
> > contribute to the significant financial firm losses that
> > were central to the financial crisis. The GSEs participated
> > in the expansion of subprime and other risky mortgages,
> > but they followed rather than led Wall Street and other
> > lenders into subprime lending."
> >
http://en.wikipedia.org/wiki/Subprime_mortgage_crisis#Government_policies
> >
> > http://tinyurl.com/498pda
> >
> > Also, as I noted to John, *commercial* mortgage loans were
> > just as problematic as housing loans, and F&F had nothing
> > to do with those.
> >
> Barney Frank and Maxine Waters are liars.
>
> "The government took over the mortgage giants in 2008 to
> shoulder soured loans following the collapse of the
> housing market. Since then, taxpayers have spent about
> $169 billion to rescue the two companies the costliest
> bailout of the financial crisis. The government estimates
> it could cost up to $220 billion to keep both companies
> afloat through 2014 after dividend payments..."
>
> 'The Fannie Mae quagmire'
> Fortune:
> http://tinyurl.com/6t2fvrz
>
