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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (15591)	12/23/2003 9:27:02 AM
From: ild	Respond to of 306849

My guess is that boyz at the Fed see how dangerous FNM/FRE are. They see that greedy management at the companies will make is necessary for the government bailout of huge proportions.

To: Ramsey Su who wrote (15591)	12/23/2003 9:45:58 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Ramsey....Fannie and Freddie have been taking out full-page ads in the Wash Post and on TV and in other media for years. (Haven't you seen that TV ad encouraging prospective homeowners to send for a booklet about buying a home? Haven't you seen the newspaper ads in which Fannie gives figures on the number of people expected to purchase homes over the next several years? These are not new!) Purpose, I believe, is to fulfill their government-mandated mission of encouraging lower-income people to believe that they, too, can own homes and encourage them to pursue ownership. I can understand bearish sentiment on the stock market and particular stocks such as Fan/Fred at any particular point in time, but I have a hard time processing the implied prediction from fan/fred bears that homeowners are suddenly going to bail in droves and create a problem for the mortgage/bond market or a major federal bailout of fan/fred. Seems to me that if the government ever needs to bail out Fan/Fred, the government was the one who set them up to do what they're doing.