Blog: PyperMarru1 on LiveVideo.com

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Sign: Aquarius
City: New Mexico
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TUESDAY, SEPTEMBER 30, 2008 (5:50 PM)

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Set Up To Fail

(I'm feeling perplexed)

This article appeared in the New York Times September 30, 1999. You can access the original online by searching on the title.

Fannie Mae Eases Credit To Aid Mortgage Lending

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

That was nine years ago. If they could see it coming then why did it have to happen?

The dilemma faced by lawmakers that tried to address these problems before they reached catastrophic proportions, one being McCain, invited the wrath of an angry mob. "See!", they would scream, "There wasn't a problem! The mean greedy rich people have once again robbed the poor! Shame! Throw the bums out!"

As they say, no good deed goes unpunished. Meanwhile, financial jackass Barney "Fannie Mae and Freddie Mac are not facing any kind of financial crisis" Frank remains chairman of the House Financial Services Committee.

Nancy Pelosi, current speaker of the house, would like the country to believe that this whole thing is the fault of the current republican party
"right-wing ideology of anything goes, no supervision, no discipline, no regulation"
This stuff is beyond parody.

I recommend you watch this video.
http://www.youtube.com/watch?v=NU6fuFrdCJY

Category: Blogging

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Posted Oct 4, 08 by SillyLeslie (

)
Oops..forgot the thumbs up..not that I agree with this blog. Thumbs up for thinking!

Posted Oct 4, 08 by SillyLeslie
This is a well written blog. I cannot agree that McCain's note of problems with Fannie and Freddie absolve his part..along with many other lawmakers, both republicans and democrats..in letting Wall Street and corporate executives have a big party for which we will now have to pick up the tab.