US unveils housing market overhaul

Unless sending a shit load of people to jail is part of this plan, nothing will change.

 

Bingo.

 

+1

 

The problem was never with those two banks. The loans they originated are fine. This is just a successful take down of something set up to help the proverbial little guy.

 

Nugget, I disagree. The loans they made were rubbish, (hence why they needed big bailouts) simply to try and increasing home ownership which is what the government wanted them to do. The only thing they did is increase indebtedness and make bankers rich. In no way did they help 'the little guy'.

 

Nope.




http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html


http://www.bloomberg.com/news/2011-...erformed-significantly-better-panel-says.html

 

Nugget, if you look at the data it shows that although in the end the private sector was making most of the risky loans. Originally (2001, 2002, 2003, 2004) Fannie and Freddie kick started the whole thing with the private sector eventually jumping on the bandwagon (to try and compete in the usual lemming like fashion) and overshadowing them (i.e. the data shown in the articles that relates to 2008). Without Fannie and Freddie to kick-start the whole process as well as their willingness to buy rubbish packaged securities from other banks, there may not have been a housing bubble.

 

Nugget,

Its like Peter Schiff says: The government doesn't guarantee your credit card, if you want to go out and buy a plasma TV you're on your own, so why should the government guarantee your loan if you want to go out and buy a McMansion?

It doesn't make sense. We want to get the government out of the mortgage sector and let the free market find the best price that people are willing to pay with any artificial manipulation.