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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (63803)	6/15/2006 12:34:39 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 110194

Fannie is the slush fund for all the lenders. They are used essentially to remove bad debts from the system and sequester them where they can do the least harm. They will remain protected to the extreme, all the posturing yer hearing from Clowntown (AKA "Washington") is Kabuki theatre to make it only appear like the problem is being dealt with. But it won't be, until an accident happens that makes it no longer avoidable.

To: John Vosilla who wrote (63803)	6/15/2006 1:28:49 PM
From: Mike Johnston	Respond to of 110194

Great comments. And to think of it, when this blows up, the average guy will blame capitalism where clearly socialization of risk is to blame.

To: John Vosilla who wrote (63803)	6/15/2006 1:39:24 PM
From: shades	Respond to of 110194

DJ OFHEO: Fixing Fannie, Freddie Will Take Many Years . By Damian Paletta Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--Fannie Mae's top regulator said Thursday that his agency has discovered new "control problems" at the mortgage giant as recently as several weeks ago. James B. Lockhart, acting director of the Office of Federal Housing Enterprise Oversight, said both Fannie Mae (FNM) and Freddie Mac (FRE), which are emerging from huge accounting scandals, will take several years to correct their internal control problems. "Neither of these companies are timely reporting at this point," he said. He said Fannie Mae and Freddie Mac "are not even close to conforming with Sarbanes Oxley, at this point." "These companies were so poorly run that it is going to take many years to fix," he said. -By Damian Paletta, Dow Jones Newswires; 202-862-9241; Damian.Paletta@dowjones.com (END) Dow Jones Newswires June 15, 2006 11:56 ET (15:56 GMT)