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Author: [Politics] Topic: People Not In Labor Force Soar By 522,000, Labor Force Participation Rate Lowest Since 1981
14daroad send a private message View Space | Blog | Friends | Playbook |
14daroad
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#76
Posted: 5/8/2012 3:00:54 PM
QUOTE Originally Posted by wallstreetcappers:


Responding to what? Ive responded to all you have asked. The govenment was not buying loans as per your contention in the reply I made. Fannie and Freddie were backing mortgages and buying some mortgages of the market, that is not equal to the government buying from the lender.



Fannie & Freddie had hundreds of billions in Sub Prime loans.

It is equal to the government buying from the lender, since the government backed F&F, and bailed them out.



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#77
Posted: 5/8/2012 3:06:08 PM
QUOTE Originally Posted by 14daroad:


Fannie & Freddie had hundreds of billions in Sub Prime loans.

It is equal to the government buying from the lender, since the government backed F&F, and bailed them out.




Were Fannie and Freddy owned solely by the government at that time?

You know the answer..
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14daroad
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#78
Posted: 5/8/2012 5:28:16 PM
Wallstreet,
Because of their implicit federal guarantee, Fannie Mae and Freddie Mac could borrow to fund their portfolio holdings at much lower interest rates than those paid by fully private financial institutions that posed otherwise comparable risks, and investors valued the GSEs’ credit guarantees more highly than those issued by fully private guarantors.

And note:

"Fannie and Freddie in meetings with investors, whether it was us or anybody else, essentially just would sort of laugh and say, 'Well, you know the government will stand behind us,'" Simon says.

So yeah, they were government backed and everybody knew it.


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#79
Posted: 5/8/2012 6:36:32 PM
14,

If I used that rationale you would crack wise remark and try to belittle the technicality.


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