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By winston (about the author)
Become a Fan -- Page 3 of 3 page(s)
The Office of Federal Housing Enterprise Oversight, which oversees the government-sponsored companies, said the mandatory cash cushion for Fannie and Freddie _ now nearly $20 billion for the two _ will be reduced by a third under the new plan. The freed-up money will go toward buying mortgages of struggling homeowners, enabling them to refinance into more affordable loans... It was the third step the government has taken in recent weeks to allow Washington-based Fannie and McLean, Va.-based Freddie to shoulder larger burdens in the mortgage market despite their multibillion-dollar fourth-quarter losses and expectations of further red ink this year. The $168 billion economic stimulus package enacted last month included a temporary increase in the cap on mortgages that the companies can purchase or guarantee, from $417,000 to $729,750 in high-cost markets.
And, as a reward for filing timely financial statements following multibillion-dollar accounting scandals, Fannie and Freddie were freed on March 1 of a combined $1.5 trillion cap on their mortgage-investment holdings. OFHEO estimated that the combination of these efforts should allow Fannie and Freddie to purchase or guarantee roughly $2 trillion in mortgages this year. The two companies together hold or guarantee around $4.9 trillion in home-loan debt. As the mortgage crisis and ensuing credit crunch have worsened in recent months, policy makers have increasingly looked to them to step up their participation in the hobbled market for securities backed by mortgages. "This is what (Fannie and Freddie) were put in place for. ... And we will deliver," Freddie Mac Chairman and CEO Richard Syron said. Influential Democratic lawmakers have been pushing for a reduction in the companies' capital-holding requirements. Bush administration officials and numerous Republican lawmakers, on the other hand, have long opposed allowing Fannie and Freddie to take on more debt, contending that doing so could threaten the global financial system."
W threw out all lending regulations. People were thrust into obligations that they would surely fail in. Why-the GOP believes that regulations make it harder for the market to settle all matters. Who wins in this situation--the top 1% while everyone else loses. You see J.P. Morgan rescues Bear Stearns because W doesn't want his cronies to lose a cent. They don't care about the 99%! W lauded his boys for working over the previous weekend. What a tool!
The article "Central Bank Offers Loans To Brokers, Cuts Key Rate" alleges "the Fed's priorities were to limit the spread of fear to the rest of the financial system, especially the repo market. That meant it wanted a deal done before markets opened Monday. To reassure the markets and Bear Stearns's counterparties, Fed officials wanted the investment bank's buyer to be able to announce at the same time as the purchase that it would stand behind all of Bear's agreements in the repo, derivative and securities lending markets. Also to reassure those counterparties, the buyer had to be of unquestioned financial strength. All those priorities meant a deal for the whole firm was far preferable to a deal for just the pieces and the uncertainty that could create."
All of these years in the failed Iraqi theatre of GWOT and all of these years with the fat cats getting bloated while the rest of us barely survive show that W is a psychopath.
Anyone who believes what he says and what the US MSM regurgitates from Rove's spin is a fool.
Become a Fan -- Page 3 of 3 page(s)
And, as a reward for filing timely financial statements following multibillion-dollar accounting scandals, Fannie and Freddie were freed on March 1 of a combined $1.5 trillion cap on their mortgage-investment holdings. OFHEO estimated that the combination of these efforts should allow Fannie and Freddie to purchase or guarantee roughly $2 trillion in mortgages this year. The two companies together hold or guarantee around $4.9 trillion in home-loan debt. As the mortgage crisis and ensuing credit crunch have worsened in recent months, policy makers have increasingly looked to them to step up their participation in the hobbled market for securities backed by mortgages. "This is what (Fannie and Freddie) were put in place for. ... And we will deliver," Freddie Mac Chairman and CEO Richard Syron said. Influential Democratic lawmakers have been pushing for a reduction in the companies' capital-holding requirements. Bush administration officials and numerous Republican lawmakers, on the other hand, have long opposed allowing Fannie and Freddie to take on more debt, contending that doing so could threaten the global financial system."
W threw out all lending regulations. People were thrust into obligations that they would surely fail in. Why-the GOP believes that regulations make it harder for the market to settle all matters. Who wins in this situation--the top 1% while everyone else loses. You see J.P. Morgan rescues Bear Stearns because W doesn't want his cronies to lose a cent. They don't care about the 99%! W lauded his boys for working over the previous weekend. What a tool!
The article "Central Bank Offers Loans To Brokers, Cuts Key Rate" alleges "the Fed's priorities were to limit the spread of fear to the rest of the financial system, especially the repo market. That meant it wanted a deal done before markets opened Monday. To reassure the markets and Bear Stearns's counterparties, Fed officials wanted the investment bank's buyer to be able to announce at the same time as the purchase that it would stand behind all of Bear's agreements in the repo, derivative and securities lending markets. Also to reassure those counterparties, the buyer had to be of unquestioned financial strength. All those priorities meant a deal for the whole firm was far preferable to a deal for just the pieces and the uncertainty that could create."
All of these years in the failed Iraqi theatre of GWOT and all of these years with the fat cats getting bloated while the rest of us barely survive show that W is a psychopath.
Anyone who believes what he says and what the US MSM regurgitates from Rove's spin is a fool.
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