just when i thought we were nearing the end of the credit crunch i find out that the backers of HALF the mortgages in america are insolvent
this aint no 1 day story here...no no no...this is as big as the subprime mess itself. if freddie and fannie cant give loans anymore, that would cut the home buyer pool by 30% in my estimation. and with a housing market already desperate for buyers, this could be blow the roof off the industry (pun intended ).
the big question now...will they be bailed out?
if the treasury and fed toss out a life raft i will be highly disappointed. fannie and freddie were created in the 30's to serve a purpose that has been irrelevant for the last 40 years. there is no point in saving them now. they have proven they cant run a decent business by loaning money based on the premise that the housing market will always rise. the faster we let these businesses die, the faster the economy can get back to growing again, and that goes for all companies in trouble now. any bailout would just extend this crisis imo.
this aint no 1 day story here...no no no...this is as big as the subprime mess itself. if freddie and fannie cant give loans anymore, that would cut the home buyer pool by 30% in my estimation. and with a housing market already desperate for buyers, this could be blow the roof off the industry (pun intended ).
the big question now...will they be bailed out?
if the treasury and fed toss out a life raft i will be highly disappointed. fannie and freddie were created in the 30's to serve a purpose that has been irrelevant for the last 40 years. there is no point in saving them now. they have proven they cant run a decent business by loaning money based on the premise that the housing market will always rise. the faster we let these businesses die, the faster the economy can get back to growing again, and that goes for all companies in trouble now. any bailout would just extend this crisis imo.
Relax and be happy.