On Tue, Sep 30, 2008 at 8:48 PM, Gruss wrote:

>
> So rather than repeat what Rush has told you, just think it through
> and ask basic questions:
>

For the eighteenth time, I don't listen to, read, or watch Rush Limbaugh,
and I never have.


> Now.  If I follow your own numbers, both freddie and fannie bought,
> roundly, $200B in these securities.  Yet they back trillions in
> mortgages.  Roundly 50% of all american mortgages, in fact.


I guess you missed this quote from Wikipedia:

"Together they [Fannie and Freddie] have more than half of the $1 trillion
of Alt-A mortgages."

Half of $1 trillion is more than $500 billion. That is in addition to the
subprime securities.

Or this quote:

"A September 30, 1999 New York
Times<http://en.wikipedia.org/wiki/New_York_Times>article stated, "...
the Fannie Mae Corporation is easing the credit
requirements on loans... The action... will encourage those banks to extend
home mortgages to individuals whose credit is generally not good enough...
Fannie Mae... has been under increasing pressure from the Clinton
Administration to expand mortgage loans among low and moderate income
people... borrowers whose incomes, credit ratings and savings are not good
enough... Fannie Mae is taking on significantly more risk... the
government-subsidized corporation may run into trouble... prompting a
government rescue... the move is intended in part to increase the number
of... home owners who tend to have worse credit ratings..."
--

In other words, nine years ago the NYTimes was already warning that the
course of action that Democrats pushed Fannie and Freddie into pursuing
could lead to a meltdown. Nine years!


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