White House "Fixing" Housing Crisis in US
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White House "Fixing" Housing Crisis in US
by [SCUM] McPhil » 30 Jul 2008, 14:19
Funny, I thought that the US capitalism market was a free market and if a large private corporation failed due to bad business practices, the business would just fail without government intervention? Perhaps I'm wrong... Perhaps the US is not true capitalism... Perhaps the US has always been a socialistic society hiding behind the word of capitalism as an excuse to start wars to fight the spread of alternative governmental models...
So the jist of this is, Fannie Mae and Freddie Mac are the US largest home loan and mortgage companies. They gave out home loans to private citizens and then they usually sell these loans to other banks to manage the loans. Fannie Mae and Freddie Mac got into the habit of giving out home loans above and beyond of what the applicants could actually afford. Only Fannie Mae and Freddie Mac did it WAY too much. With so many Americas loosing their jobs, they can't pay their monthly home loans. Normally, the managing banks would foreclose on these homes and resell them on the open market, but with so many foreclosures and no one can afford a new house, banks are failing all over the US because they can't survive with so many homes foreclosed on the books. Basically, Fannie Mae and Freddie Mac tried to screw the public into housing they couldn't afford and now the housing market is failing.
So now, the white house is stepping in and dulling out 4 billion dollars into Fannie Mae and Freddie Mac to "fix" the housing market. True capitalism eah? What's the lesson learned here. The lesson is establish the largest company in your market and then screw as many people as possible because if the economy fails, the government will rush in and fix your company so you can continue screwing the public into something they can't afford.
Read on...
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Bush Signs Housing Rescue Plan
Bush signed the measure in the Oval Office shortly after 7 a.m. EDT with his economic team on hand.
Wednesday, July 30, 2008
WASHINGTON (Reuters) - As home foreclosures rise and property values slump, U.S. President George W. Bush on Wednesday signed into law a rescue package that includes emergency backstops for mortgage financing companies Fannie Mae and Freddie Mac.
Despite opposition to a provision that offers $4 billion in grants to states to buy and repair foreclosed homes, Bush reversed his opposition to the overall legislation because it included numerous other key housing reforms.
The new law boosts oversight of Fannie Mae and Freddie Mac, which own or guarantee almost half the country's $12 trillion in home mortgage debt. It also expands a temporary line of U.S. Treasury credit and gives the government the option to buy shares in them if they ran into trouble.
"We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac," said White House spokesman Tony Fratto.
Bush signed the measure in the Oval Office shortly after 7 a.m. EDT with his economic team on hand, including Treasury Secretary Henry Paulson who helped negotiate the package with the Democratic-controlled Congress.
The new measures come as prices of U.S. single-family homes plunged at a record pace in May from a year earlier. The closely-watched Standard & Poor's/Case Shiller composite index of 20 metropolitan areas fell 0.9 percent in May from April, bringing the measure down 15.8 percent from May 2007.
The new law also sets up a $300-billion fund under the Federal Housing Administration to help distressed homeowners get more affordable, government-backed mortgages and get out from under exotic mortgages they cannot afford.
"The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes," Fratto said.
The bill also offers tax breaks to spur home-buying; sets up the first national licensing system for mortgage brokers and loan officers; and raises the limit on the size of mortgages that federal agencies can guarantee.
Copyright 2008 Reuters.
So the jist of this is, Fannie Mae and Freddie Mac are the US largest home loan and mortgage companies. They gave out home loans to private citizens and then they usually sell these loans to other banks to manage the loans. Fannie Mae and Freddie Mac got into the habit of giving out home loans above and beyond of what the applicants could actually afford. Only Fannie Mae and Freddie Mac did it WAY too much. With so many Americas loosing their jobs, they can't pay their monthly home loans. Normally, the managing banks would foreclose on these homes and resell them on the open market, but with so many foreclosures and no one can afford a new house, banks are failing all over the US because they can't survive with so many homes foreclosed on the books. Basically, Fannie Mae and Freddie Mac tried to screw the public into housing they couldn't afford and now the housing market is failing.
So now, the white house is stepping in and dulling out 4 billion dollars into Fannie Mae and Freddie Mac to "fix" the housing market. True capitalism eah? What's the lesson learned here. The lesson is establish the largest company in your market and then screw as many people as possible because if the economy fails, the government will rush in and fix your company so you can continue screwing the public into something they can't afford.
Read on...
==============================
Bush Signs Housing Rescue Plan
Bush signed the measure in the Oval Office shortly after 7 a.m. EDT with his economic team on hand.
Wednesday, July 30, 2008
WASHINGTON (Reuters) - As home foreclosures rise and property values slump, U.S. President George W. Bush on Wednesday signed into law a rescue package that includes emergency backstops for mortgage financing companies Fannie Mae and Freddie Mac.
Despite opposition to a provision that offers $4 billion in grants to states to buy and repair foreclosed homes, Bush reversed his opposition to the overall legislation because it included numerous other key housing reforms.
The new law boosts oversight of Fannie Mae and Freddie Mac, which own or guarantee almost half the country's $12 trillion in home mortgage debt. It also expands a temporary line of U.S. Treasury credit and gives the government the option to buy shares in them if they ran into trouble.
"We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac," said White House spokesman Tony Fratto.
Bush signed the measure in the Oval Office shortly after 7 a.m. EDT with his economic team on hand, including Treasury Secretary Henry Paulson who helped negotiate the package with the Democratic-controlled Congress.
The new measures come as prices of U.S. single-family homes plunged at a record pace in May from a year earlier. The closely-watched Standard & Poor's/Case Shiller composite index of 20 metropolitan areas fell 0.9 percent in May from April, bringing the measure down 15.8 percent from May 2007.
The new law also sets up a $300-billion fund under the Federal Housing Administration to help distressed homeowners get more affordable, government-backed mortgages and get out from under exotic mortgages they cannot afford.
"The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes," Fratto said.
The bill also offers tax breaks to spur home-buying; sets up the first national licensing system for mortgage brokers and loan officers; and raises the limit on the size of mortgages that federal agencies can guarantee.
Copyright 2008 Reuters.
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[SCUM] McPhil - Super Admin
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Re: White House "Fixing" Housing Crisis in US
by [SCUM] Speedy » 30 Jul 2008, 17:42
Jesus christ. Change needs to happen soon.
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[SCUM] Speedy - Forum God
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