SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : American Presidential Politics and foreign affairs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TimF who wrote (29711)10/2/2008 1:14:47 PM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
Re: [They did not *originate* mortage loans to individuals.] "Never said they did. But they contributed greatly to loans, and particularly loans to less than ideal credit risks, getting made...."

But not directly.

Not any more then the re-insurers in the Bahamas "contribute" to fire and life insurers in America having 'lax standards'....

All they do is buy up the loans that have already been made.

Many other lenders (all PRIVATE) are the ones who made those loans, and the ones who 'relaxed' their appraisal and lending standards in doing so, not so much the GSEs.

Also, it would be just as fair to note that the GSEs "contributed greatly" (your phrase) to America having the highest per-capita rate of home ownership in the entire world... and for many decades now....

In any event, the global financial crisis extends far beyond just sub-prime mortgages now.

Into many, many areas apart from sub-prime (Credit Default Swaps and other unregulated derivative securities, the explosion of risk-aversion in counter-party transactions, bank runs, collapse of trust in financial institutions, evaporation of Investment Banking, etc.)

Fannie and Freddie's part in 'causing' all this mess is arguably smaller even then AIG's... (and has been over-played from the beginning by 'no-nothing talking heads' and other axe-to-grind sorts).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News