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View Full Version : Obama to phase out Fannie and Freddie.



pghin08
02-09-2011, 09:52 AM
http://money.cnn.com/2011/02/09/news/economy/fannie_freddie_phase_out/index.htm?hpt=T2

Thoughts?

sanfran22
02-09-2011, 12:27 PM
I say about time somebody is allowed to address them. I remember a previous pres (who shall not be named), had tried to deal with this situation. At that time we heard there was no problem. Also,did...

OnePimpTiger
02-09-2011, 12:58 PM
I am cautiously optimistic. It depends on which of the outlined proposals the final product leans toward, but the fact that he's even addressing it is impressive. <br />
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This is what kills me about...

pghin08
02-09-2011, 02:07 PM
I am cautiously optimistic. It depends on which of the outlined proposals the final product leans toward, but the fact that he's even addressing it is impressive.

This is what kills me about Fannie/Freddie:


Those are the same issue. Fannie and Freddie did contriubte majorly to the housing bubble precisely because they promote home ownership among low-income Americans...they help people who can't really afford a house buy a house. Some people can't afford to buy a house, plain and simple. Or they can't afford to buy as nice of a house as they want. Yet Fannie and Freddie help them either buy a house when they shouldn't or buy a more expensive house than they should, then when they can't afford the mortgage, everyone blames the banks for lending people more money than they could afford. They do everything they can to get the loan, then when they default on the loan, they blame the bank for giving them what they asked for. Idiocy plain and simple...the government should not be involved in helping people buy a house, either you can afford it or you can't.

If the first option happened (no government involvement), I would first crap my pants and fall backwards, then I would jump for joy...but I don't think that's even in the realm of possibility. My level of joy would decrease incrementally as you continue down the list of options. Personal opinion, we will end up with minimal changes, but hopefully it will be something at least helps a little.

That pretty much sums up my feelings on it too. Anything that happens with Fannie and Freddie will take years, if not decades. But I like it.

sanfran22
02-10-2011, 12:12 PM
I just read that Fannie and freddie estimate it will take another 4 yrs minimum for housing to rebound......Makes me wonder what would have happened if we did things differently when we had the chance.

pghin08
02-10-2011, 12:44 PM
I just read that Fannie and freddie estimate it will take another 4 yrs minimum for housing to rebound......Makes me wonder what would have happened if we did things differently when we had the chance.

We've made a lot of mistakes. Most of the burden falls on us as citizens. Individually, we need to live within our means and just be reasonable. I make about $35K a year, so as a 24 year old, should I go out and buy a $250K house and just put 3% down on it because I can? Of course not. This phase-out is a good idea, because it forces us to exercise reason and responsibility for ourselves.

sanfran22
02-10-2011, 12:46 PM
We've made a lot of mistakes. Most of the burden falls on us as citizens. Individually, we need to live within our means and just be reasonable. I make about $35K a year, so as a 24 year old, should I go out and buy a $250K house and just put 3% down on it because I can? Of course not. This phase-out is a good idea, because it forces us to exercise reason and responsibility for ourselves.
I agree with most of that, but I also argue that the gov't made it way to easy to live above your means. In fact they strongly encouraged it. My point for gov't staying out of most things......

pghin08
02-10-2011, 12:48 PM
I agree with most of that, but I also argue that the gov't made it way to easy to live above your means. In fact they strongly encouraged it. My point for gov't staying out of most things......

They definitely did. The phase-out would be a step in the right direction though.

By the way, how often do you, me and OPT agree on something? :winking0071:

theonedru
02-10-2011, 12:55 PM
They definitely did. The phase-out would be a step in the right direction though.

By the way, how often do you, me and OPT agree on something? :winking0071:

Would it call for the apocalypse if i said that I too agree, or maybe hell might free over

pghin08
02-10-2011, 12:57 PM
Would it call for the apocalypse if i said that I too agree, or maybe hell might free over

There is hope for us all yet.

sanfran22
02-10-2011, 01:00 PM
Lol....probably gonna happen:)

duwal
02-10-2011, 08:23 PM
We've made a lot of mistakes. Most of the burden falls on us as citizens. Individually, we need to live within our means and just be reasonable. I make about $35K a year, so as a 24 year old, should I go out and buy a $250K house and just put 3% down on it because I can? Of course not. This phase-out is a good idea, because it forces us to exercise reason and responsibility for ourselves.


I agree, the big housing surges happened when the economy was near one of its highest peaks in history. People buying the homes didn't take into consideration that the economy would drop and even out