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GOVERNMENT GRABS FANNIE

Discussion in 'Uncategorized Threads' started by crusha, Sep 5, 2008.

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  1. crusha

    crusha TS Member

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    Just read the rumor out of D.C. that there will be a government takeover of Fannie Mae and Freddie Mac, this weekend.


    ...shareholders will be wiped out.



    Feelings? Thoughts? Opinions?


    (Translation: as of Monday, 50% of the home mortgages in America will be held by the Federal Government)
     
  2. Neil Winston

    Neil Winston Well-Known Member

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    My opinion is that things are getting really scary.

    Neil
     
  3. ramorton

    ramorton TS Supporters TS Supporters

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    You'll think scary, if that half breed Muslim Shine is elected. RA Morton
     
  4. smsnyder

    smsnyder Well-Known Member

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    Scary is the truth. IRA continue to drop like a rock. How the heck can people retire when peoples retirement funds are dropping like a rock?
     
  5. smsnyder

    smsnyder Well-Known Member

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    One billion in aid to Geogia. Billions to iraq and afgan war when they should be paying it. Major banks falling like fly's. Unemployeement 600,000 in 8 months. NOT GOOD
     
  6. halfmile

    halfmile Well-Known Member

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    This has been in the works for a while.

    The blame needle only points in one direction: GREEDY LENDERS.

    The whole fiasco was like mainlining heroin. As soon as the qualifications for mortgage loans were relaxed, housing prices shot up, contractors got busy, suppliers were fat with orders, and it seemed like the millenium had arrived.

    The amount of debt outstanding went through the roof. "Flipping" houses became a buzzword and a seeming pathe to easy wealth. Even a TV show or 2 about it.

    When the ARM's (inventions of the devil himself) began to reset suddenly there were people who could not make the new, higher monthly payment.

    Theis resulted in homes back on the market, and the prices went down. Many people owed more than the house was worth at the now valuations. So when things got tough they walked away. Some trashed the place first.

    In our town, it does not seem as bad. Unfortunately the key word is "seem".

    At the Sheriff's sales the banks are putting in bids to the amount of the outstanding debt, or very near. This results in the bank owning the house(the mmortgagee is the owner till the sale is done, even though he may have been gone for months). Very few private speculators have cared to buy at these high prices.

    Then the bank puts a realtor on it. So there are not all the cheap bargain deals the TV pitchmen would have you believe(BUY my CD). The idiots claiming the worst is over are preventing this market from finding itself.

    I should have gone into business making "for sale" signs, as there is a bumper crop of them here.

    Prices are starting to cave in now, with the inexpensive borderline properties the first to drop.

    I feel we are just now going over the falls. Hope the barrel holds together.

    HM
     
  7. halfmile

    halfmile Well-Known Member

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    Several stories on the above link, looks like it's going to happen.

    Also looks like the fat cats will walk and the little guys get hosed.

    Is this a great country or what?

    HM
     
  8. smsnyder

    smsnyder Well-Known Member

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    Great, the shareholders loss everything and the big guys walk out and say oh well.
     
  9. al391

    al391 TS Member

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    At one time holding a mortage(banks did that once)was a good thing. A 20 year mortage would more than double the original investment in 20 years. Somehow along the line banks began to sell their mortgages for fast profits and instant profits. Banks used to hold people to a high credit standard. My first credit card was from Sears............and it required a perfect credit score. Kids in college get credit cards in the mail. These kids have no credit history but the credit card companies know most parents will bail out the overspending youths..........statistically it works out. Greed is the creed..........It is going to destroy us. Both political parties could care less about us..........It's about the best job in the world with the best bennies and a retirement package that is the envy of the world. People we need to take back our government..............In my opinion the last person who really cared about us as a nation was Ross Perot.
     
  10. cubancigar2000

    cubancigar2000 Well-Known Member

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    I always liked Ross and would like to see him and Sarah in office Ha
     
  11. Bisi

    Bisi TS Member

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    Well I don't think we should be bailing out anybody. Markets work.

    It is easy to blame the big banks, but government got involved and help make this mess. 10 to 12 years ago the civil rights crowd (Jesse Jackson, etal) started raising hell about - not enough minorities owning homes. So what did the government do - they demanded that the banks start loaning money to these poor people, so they could live the American Dream. So then came the nothing down loans, the 125% loan etc....

    There was a time when a person had to put at least a 20% down payment. People still putting down that amount of money aren't in default.
     
  12. pendennis

    pendennis Well-Known Member

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    Here is how you can look at Fannie Mae and Freddie Mac takeovers -

    - If you are making your house payments each month, and do not have an ARM due in the next 5-6 months, this takeover will not affect you.

    - If you are not a stockholder in Fannie Mae or Freddie Mac, you don't have to worry about anything.

    - If you hold an ARM due soon, and you are having trouble making your monthly payment, please learn the meanings of DEFAULT and FORECLOSURE. You are probably upside down in your home equity position.

    - If you got your loan with no proof of income ("No Doc"), no credit check, and zero or low down payments, please see above statement.

    - If you hold stock in Fannie Mae or Freddie Mac, you will be SOL come Monday morning. The companies have lost 95% of their value, and you will probably get to write off losses in your income tax. Your stock certificates will make nice wallpaper in your bathroom. There will be a "bankruptcy" reorganization of sorts. The U.S. Government takes over temporarily, installing new CEO's and boards, and issuing new stock. They hold about $3 trillion in loans.

    The shaky loans they guaranteed are at the back end of this tidal wave. The major damage is already done, and the next five months will have further foreclosures, but this should be nearly the end of it.

    Best,
    Dennis
     
  13. halfmile

    halfmile Well-Known Member

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    Dennis, I don't think so. Countrywide for one is another giant awash in garbage loans. I have been waiting for them to implode for a half year now.

    About half the foreclosure sales listed in our legal notices here are Countrywide.

    And they are the bastards who started this giveaway loan program.

    We also have the Hud program, and some others that are taking back Habitat for Humanity homes because of non payment.

    On your first note, I wonder how many 401K's have these turkeys. I would guess enough to make Enron look like a lemonade stand.

    HM
     
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