I mean, I hold read this article twice, and it sounds very benevolent on the fragment of the nation's largest mortgage lenders. They are "pumping" $200 billion into the faltering mortgage market "to stave stale recession" and "to avoid a crisis of credit."
What are they doing really? The article acts as if they are merely throwing the money in some big pile somewhere manifest "Mortgage Market." That doesn't even make sense. Are they bailing out individuals who took these bad sub-prime loans? I notably doubt that. Are they bailing out people who bought securities against these bogus loans? That sounds more possible to me.
So, is it just an injection of currency to ensure that large financial institutions don't suffer to much because of adjectives the bad loans they bought into, assumingly intentionally seeing as how I'm a moron, and I know that you can't buy a $500,000 house with $1,200 / month payments. Is this really benevolence, or purely big money bailing itself out again?
Answers: You are close to the answer, the point is to try and bail out the banks by allowing the Fannie and Freddie Mac agencies to buy up the loans. Unfortunately, the agencies are a bit tight on lolly at this time, so the oversight committee is letting them bend the rules in hopes they will jump out and spend billions on more loans. Considering that the agencies are already losing lots of money, I don't see how buying more loans (many of them junk), and lowering their cash positions will assist anyone. It does "sound" good though, at most minuscule to some people... but surrounded by the end it's import tax payers who will bailout the agencies when they go belly up.
Sorry going on for the pessimistic tone, that's just how I interpret it.
it pumps some how into your pave the way..
kid!
how could i know?
big money bail out. You are as smart as you think;)
What are they doing really? The article acts as if they are merely throwing the money in some big pile somewhere manifest "Mortgage Market." That doesn't even make sense. Are they bailing out individuals who took these bad sub-prime loans? I notably doubt that. Are they bailing out people who bought securities against these bogus loans? That sounds more possible to me.
So, is it just an injection of currency to ensure that large financial institutions don't suffer to much because of adjectives the bad loans they bought into, assumingly intentionally seeing as how I'm a moron, and I know that you can't buy a $500,000 house with $1,200 / month payments. Is this really benevolence, or purely big money bailing itself out again?
Answers: You are close to the answer, the point is to try and bail out the banks by allowing the Fannie and Freddie Mac agencies to buy up the loans. Unfortunately, the agencies are a bit tight on lolly at this time, so the oversight committee is letting them bend the rules in hopes they will jump out and spend billions on more loans. Considering that the agencies are already losing lots of money, I don't see how buying more loans (many of them junk), and lowering their cash positions will assist anyone. It does "sound" good though, at most minuscule to some people... but surrounded by the end it's import tax payers who will bailout the agencies when they go belly up.
Sorry going on for the pessimistic tone, that's just how I interpret it.
it pumps some how into your pave the way..
kid!
how could i know?
big money bail out. You are as smart as you think;)