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Proposal Seeks to Restrain Fannie Mae and Freddie Mac

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  • howard | | 22 Feb 2013, 11:54 PM Agree 0
    No fannie or freddie but a new entity that wont give anything but basic gurantees, sounds like the end of the housing market for the average guy and one just for the rich. Well not true, the banks will move in and create even bigger amounts of cmo's, mortgage backed securities and other exotic forms of betting where they will double and triple down on them. These will be created at their rates, no you say there will be competition just like when they were pricing the libor index which ripped TRILLIONS from our hands and into the Banker's cofers. You say we can trust them as they have learned from the past then why are they spending millions trying to weaken the Dodd-Frank law. They are too big to fail, too big to break up, and too big to bring to trial.
    Fannie and Freddie can be run responsibily with the proper management put in place and overseen by the government and an independent auditor. What is important is that they brought uniforimity to the market place and brought a bit of competitivness to the pricing. One only has to go to a bank and see their rates and then go see a broker's rates, they are usually more competitive than the bank's. This is a knee jerk reaction that will put us back into the 1920'/30's lending atmosphere. DONT LET THEM DO IT, CHANGE WHAT YOU HAVE AND IMPROVE IT. The government will get theri money back soon enough, actually we should be suing the banks for much more than they are settling for over the LIBOR Scandal and the Mortgage backed securities scandals of the past 7 years or so.
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