> RoMunn wrote: > That is a dodge. Fannie and Freddie were holding guarantees on more than > $500 billion in Alt-A mortgages as of 2007. They didn't actually lend the > money themselves, oh no, but they guarantees the loans. Those guarantees, as > we now know, were worthless.
SECURITIES!! NOT LOANS. Let's look at their own numbers (to the extent we can trust them). * As of June 30th they jointly held $114 billion of subprime and $71 billion in Alt-A securities Now let's say that's as high as $180B. Ok. What's the path then? (1.) Somebody loaned some dillweed money. Here's a regulation opportunity. Why was that even allowed? If you can't make bad loans you can't ... (2.) Somebody packaged up a bunch of these dillweed loans and sold them as securities. Regulation opportunity. Why is that even allowed? If you can't package up loans, especially bad loans, you can't ... (3.) Fannie and Freddie bought the *security*. Regulation opportunity. Why is that even allowed? Via lobbyists they were able to buy into sub-prime, loans they couldn't make. Cause they woulda made 'em if they could. No dispute. Are you getting the idea though? And are you seeing your own numbers? $200 billion is not the problem. It's not the "fuel". It's the whole system. The whole unregulated system. The system our government has had 7.5 years to change. They didn't. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:271669 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
