Quote:
Originally Posted by sailaway21
Things just got decidedly worse for the taxpayer with the government taking over Freddie and Fannie.
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How would you know? You're still posting that the economy is growing!
Come on folks...the alternative is unthinkable. With no one operating secondary, the entire real estate structure of the economy collapses instantly.
Sailway21 still doesn't have a clue how the secondary mortgage market operates or why Paulson made his move. Go back and read my posts when I predicted this.
Stockholders just got creamed, but they had two months warning this was going to happen, so who's fault is that? It's about 100 times cheaper to bail these GSE's out than to let them fail.
There are no savings accounts to lend out. What little there was has already been lent. Americans have a less than zero savings ratio. There are no more checking accounts to borrow against, I explained this 5 months ago. The middle class is disappearing and no longer backs mortgages. Secondary marketing does...ie...bonds. The Private market died August 2007, the GSE's are it. They die, so does real estate. Paulson had no choice and Sailaway should read up a bit before posting nonsense.