January 23rd, 2012
02:21 PM ET
11 years ago
Freddie Mac draws Republicans' attention
New York (CNNMoney) - The one thing Mitt Romney and Newt Gingrich seem to agree on about Freddie Mac is that it played a significant role in the housing bubble - and the subsequent financial meltdown that followed when it burst.
But many experts in the field question that view, saying Freddie Mac and fellow mortgage financer Fannie Mae were relatively small players in the rapid growth of subprime and other risky home loans while the housing bubble inflated - and were relatively late to the game at that.
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Without help from Fannie and Freddie, there would be no home sales. It is just like an uninformed right wingnut who watches foreign owned media to let the real culprit, Wall Street, off the hook with no blame.
Right, because a GOVERNMENT GUARANTEED LOAN wouldn't cause people to buy subprime investments that they otherwise wouldn't. Get Real.
Republicans of course would like to focus on Freddie and Fannie instead of where the real culprit lies, the banking system which is basically getting by with fraud. It is the banking system which caused this economic meltdown with the two Fs as the experts say, minor bit players in the grand scheme of things. The Republicans don't want to really go to the heart of the issue as that would tick off many of their biggest contributors. Republicans, wholey owned subsidiaries of big business and the enemy of the common people.
The republicans are clearly trying to draw attention away from the Wall Street contributors to their campaign funds and super PACs by blaming Freddie Mac and Fannie Mae. It was the republican friendly Wall Street financiers and banks that have been the major players in abuses since de-regulation. Ironically, none of these people are in jail, or have even been prosecuted, due to the people they own in congress.
this is the heart of the recession. gingrich is tied to it. Romney can turn it around. vote for Mitt.
Ah yes, good thing we have 'experts' to attempt to diffuse the bad press that Fannie and Freddie both deserve. Otherwise people might remember how UNCONSCIONABLY IRRESPONSIBLE those firms (and the crooks who facilitated them) really are.
So a younger generation of greedy, naive (never a good combo) CEOs and CFOs convinced their aging, tech-illiterate predecessors to let them take the reigns, and, with the help of emerging technologies, and interest-rate drops in the housing market, plus our already-established pattern of consumerism and credit spending, and voila we have a house of cards! Ain't it great! For Fannie and Freddie, what the hell do they care? They got bailed out. If you were Fannie or Freddie, why would you be hesitant the next time you have an unsupportable business model, or greed-driven directive? The people you f***ed are still f***ed, but you're fine, so why not? They can just sit back and sip the champagne. Who's going to do anything about it?
What confuses me is why so many act surprised and incredulous when this stuff happens, and moreover, why anyone would think politicians would care.
Everyone in this COUNTRY has LESS of a share in the national wealth than they used to have. Everyone. Except a fraction of the top 1%. That's it. A few thousand very wealthy people now have even more money. Several hundred million people now have less. These are not coincidental figures. These are not spikes in the market. These are DECADE long trends that go back to the late 1970's.
The system is alive and well. It doesn't matter who you vote for, they're all bought.
VOTE NOBODY IN 2012
Change will only come from the people
Any time a GOBP deathcult member mentions Freddie/Fannie they will almost always lie and say they were involved in the housing collapse. This is one of the GOBP deathcult's Big Lies. Do the research (it's quite easy) and you'll see the facts clearly show Wall Street bears the vast majority of the blame.
We are fortunate to have government agencies to help with those who lost so much in the violent storms in the deep south, yesterday.
Wall Street and the fed. banking system is definitely where this trail ends, but Fannie and Freddie were perfectly willing accomplices.
I seem to also recall that George W. Bush pushed the idea of home ownership for everyone.
@Romneyzda1
No he's not. None of them are. Politicians care about votes, not progress.
While Romney and Gingrich both talk about how evil Freddie Mac is – only one of these two guys took $300,000 from them for lobbying.
Gingrich is a lying sack, and everyone knows it. Why does the right like him?
President Bush tried many times form the beginning of his administration to prior to the crisis to do something about Freddie... after all they did control these loans and bundled them.
Specialists tell that mortgage loans help a lot of people to live their own way, because they are able to feel free to buy needed stuff. Furthermore, some banks offer auto loan for different persons.
"President Bush tried many times form the beginning of his administration to prior to the crisis to do something about Freddie... after all they did control these loans and bundled them."
Nonsense. Buying loans on the secondary market, after they've been made, is the exact OPPOSITE of being able to "control these loans." And you obviously failed history. Bush was pushing to increase homeownership. His criticism of FF had to do with accounting matters, not loan purchasing policies. Educate yourself and don't be an extreme rightwing groupie,
Rudy NYC - I seem to also recall that George W. Bush pushed the idea of home ownership for everyone
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Wrong again Rudy. George Bush and many Republicans warned about Fannie Mae and Freddie Mac FOR YEARS but these agencies were favorites of the Democrats. Just look at who these agencies gave the most money to, the Democrats.
FYI, pushing home ownership does not mean giving a $300K GOVERNMENT GUARANTEED mortgage to a part time Walmart employee as the Democrats wanted.
It is truly sad to read all the comments from individuals who are so convinced that only one side is to blame for everything that has gone wrong. It's that kind of mindset that we have on both sides of the political aisle that jeopardizes this great country of ours. Hopefully you tools will figure that out, before it's too late to turn this ship around.
"Pathetic little sheep children following the herd, Guided by the voices in their empty little heads, You are a worm in a dog's heart"
It is truly sad to read all the comments from individuals who are so convinced that only one side is to blame for everything that has gone wrong. It's that kind of mindset that we have on both sides of the political aisle that jeopardizes this great country of ours. Hopefully you tools will figure that out, before it's too late to turn this ship around.
"Pathetic little sheep children following the herd, Guided by the voices in their empty little heads, You are a worm in a dog's heart"
nothing but the truth. There you go again making stupid statements. Are you getting a kick back from Newt???
Pathetic little sheep children following the herd, Guided by the voices in their empty little heads, You are a worm in a dog's heart
@ Wire Paladin and Rudy: Again you are wrong as usual! Barney Frank and a Democrap-controlled Liberal Congress went against the Bush Administration's warning NOT to make loans to deadbeats like you two! Banks were also MANDATED to make mortgage loans to people unable to make their monthly payments! This was the primary reason for the collapse of our economy! Elite Liberals and those incapable of paying for their decisions was the problem then and today! Democrats were the culprits in their undying desire for votes from people that are too ignorant to see it or looking for a free ride on others! Wake up and vote GOP!
"George Bush and many Republicans warned about Fannie Mae and Freddie Mac FOR YEARS "
Are you really this dishonest or do not even remember recent history? Your GOBP deathcult had the House, the Senate and the Presidency and your blaming the DEMS for not doing anything? Grow up. If you want to really learn how the psychopaths hidden among the 1% are able to corrupt our government and economy, start with that little cesspool between 2001 and 2006.
Aw Yes, the Housing Bubble. Why could a lot of people not pay their Morgages? Was it because of the Banks or because the people have a lack of funds? If you buy something and then can't pay for it who do you blame? Who??? A dollar down and a dollar when you catch me. You have to crawl before you can walk. Unless you are a Liberal. Then you don't need to pay, you just get approved.
@Truth and Nothing But the Truth
"Wrong again Rudy. George Bush and many Republicans warned about Fannie Mae and Freddie Mac FOR YEARS but these agencies were favorites of the Democrats."
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Again... you distort the truth. Republicans had control of our government and never attempted to get rid of these agencies. The Republicans remain in bed with the banking industry and although Fannie and Freddie made home ownership easier, the banks and finance companies played loose and fast with the loan process. You might check this with Newt Gingrich, a leading Republican candidate and former lobbyist for Freddie Mac!
Keith in Austin
@ Wire Paladin and Rudy: Again you are wrong as usual! Barney Frank and a Democrap-controlled Liberal Congress went against the Bush Administration's warning NOT to make loans to deadbeats like you two! Banks were also MANDATED to make mortgage loans to people unable to make their monthly payments!
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I just love the way the haters try to reqrite history to their liking.
I would suggest that anyone who wants to know the truth put this search line into a web search:
" george w bush home ownership society "