Fannie & Freddie
July 28, 2016 at 4:25 p.m.
By -
Americans need to know the truth about what caused the financial crisis requiring a TARP bailout. While Obama blames banks, it was caused 100 percent by the U.S. Government distorting the free market. The cause was Fannie Mae and Freddie Mac (government agencies) buying sub-prime mortgages, not requiring income verification on mortgage holders, and loaning up to 100 percent of a home's appraised value.
Private markets and banks will rarely if ever make these mistakes and put their own money at risk. But Fannie and Freddie are playing with taxpayer money. While the banks are involved to originate and create these mortgages it is only because there is a ready buyer: Fannie and Freddie who buy these loans from banks with taxpayer money.
While it may be a noble motive to help more and more people purchase their own home, this government method distorted the free market. Thousands of unqualified buyers were given mortgages, many home values dropped below the loan and mortgage amounts, and thousands of buyers have walked away from their mortgages. So now the taxpayer is on the hook for all of this government (congressional) incompetence. And now Obama wants more control to regulate the banks?
It is not the banks, Fannie Mae and Freddie Mac is the real problem in the financial crisis, and it remains a huge liability for taxpayers. None of the financial crisis would have happened in our free market, except for Fannie and Freddie - none. The real solution is for the government to sell or close down Fannie and Freddie, and stay out of the free market. Government programs distort free markets and only create problems.
Write your senators today to sell or close Fannie Mae and Freddie Mac. This is the real Financial Reform Bill needed today in Washington.
Russell Reahard
North Manchester[[In-content Ad]]
Americans need to know the truth about what caused the financial crisis requiring a TARP bailout. While Obama blames banks, it was caused 100 percent by the U.S. Government distorting the free market. The cause was Fannie Mae and Freddie Mac (government agencies) buying sub-prime mortgages, not requiring income verification on mortgage holders, and loaning up to 100 percent of a home's appraised value.
Private markets and banks will rarely if ever make these mistakes and put their own money at risk. But Fannie and Freddie are playing with taxpayer money. While the banks are involved to originate and create these mortgages it is only because there is a ready buyer: Fannie and Freddie who buy these loans from banks with taxpayer money.
While it may be a noble motive to help more and more people purchase their own home, this government method distorted the free market. Thousands of unqualified buyers were given mortgages, many home values dropped below the loan and mortgage amounts, and thousands of buyers have walked away from their mortgages. So now the taxpayer is on the hook for all of this government (congressional) incompetence. And now Obama wants more control to regulate the banks?
It is not the banks, Fannie Mae and Freddie Mac is the real problem in the financial crisis, and it remains a huge liability for taxpayers. None of the financial crisis would have happened in our free market, except for Fannie and Freddie - none. The real solution is for the government to sell or close down Fannie and Freddie, and stay out of the free market. Government programs distort free markets and only create problems.
Write your senators today to sell or close Fannie Mae and Freddie Mac. This is the real Financial Reform Bill needed today in Washington.
Russell Reahard
North Manchester[[In-content Ad]]
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