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

To: Kailash who wrote (26359)	12/30/2004 6:07:04 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

The function of Fannie Mae is a critical component of Monetary Socialism. Without heavily subsidized loans the system fails. I am not privy to fight between the political friends and enemies of Fannie Mae in particular, but the function of Fannie Mae will be retained. Investment Banking firms like Goldman Sachs or Bear Stearns as well as larger banks like Citibank or JP MorganChase could easily take over Fannie Mae's function. For this reason they are likely one of the political enemies of Fannie Mae. This same pressure is being brought to bear in the trumped up Social Security "crisis". Rather than issue some government debt twenty years from now to cover a short-lived short-fall over a fifteen year period, some people suggest we instead borrow far more today for a partial solution to this future problem. There is powerful support behind this scheme and large profits to be privatized. Any losses will of course be socialized, as is customary in a Monetarist economy. creators.com .