Fannie and Freddie and William Black
William Black writes this post Fannie and Freddie’s Managers bought Nonprime Paper for the same Reason Merrill Did: (hat tip Rebecca)
This subdivides into four arguments: the Community Reinvestment Act (CRA), Congress’ rejection of an administration proposal to give OFHEO greater supervisory powers, specifically, the power to place Fannie and Freddie in receivership, the ability of Fannie and Freddie to borrow due to their status as Government-Sponsored Enterprises (GSEs), and the rules on Fannie and Freddie making a rising percentage of their loans to those with below median income.
Clear and concise.
How about a Wednesday open thread?
There should be some interest in the memorial service in Tuscon, Arizona.
Alot of people think we are doomed, but there are still great ways to make money. Even while the economy is collapsing around us.
I subscribe to the FFT economic newsletter at http://www.forecastfortomorrow.com that guy has called many big events before they have happend, which I have found to be amazing, and has helped me. including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.
His oil calls are insane, and I have been making good money with them. He is well worth a look, if you want to keep two steps ahead of the sheeple out there.
I am worried about my financial future. Is anyone else nervous out there?
It surprisised me to see as much bloviating about the CRA as we’ve seen when it is SO obviously NOT THE PROBLEM.
Nervous you ask? You might want to brush up on your rebuilding skills, for if there is a collapse, then to quote another: “Out of the ashes, the Phoenix will rise”, only in this case, it will be the “Bald Eagle”. It’s not going to do you any good worrying about your future if it ain’t there, so, have a plan “B”, “C”, & maybe even “D”.
kelly, what’s your share of the take at forecastfortomorrow(belongstome)?
I think I remember reading back 2006 that a small percentage of the market, mostly subprime, was going to cause a recession. It turns out that the percentage included much more than subprime but that the fallout was much worse because of the fancy financial instruments.
I used to work for FannieMae in the 90’s and it was a more reputable and honest company back then. The top managers and VPs were somewhat greedy, but not to the degree they became on 2002-08. They became no better than the crooks at Goldman, Merrill,
Countrywide , BofA, or those greediest among the Bush/Cheney/Paulson people.
Now the real middle class have to pay for their folly and greed. I see no reason Fannie/Freddie execs. as well as Hank Paulson,Chris Dodd, BofA,Goldman,AIG execs. are not in prison.