When you see the Republican party point to Fannie and Freddie as the cause of all our housing
problems one should think deeply about why they boil a complex issue down to a simple talking point.
By Mark Zandi, Published: January 24
There is plenty of blame to go around for the U.S. housing bubble, but not much of it belongs to Fannie Mae and Freddie Mac. The two giant housing-finance institutions made [...]
International Monetary Fund chief Christine Lagarde has chosen Russia, China and Japan as the first countries outside the European Union to visit since taking office in July, an IMF spokesman said Thursday.
The trip comes as all three countries have expressed interest in providing financial assistance to Europe, but under the IMF’s guide or oversight, as a part of the EU plan to resolve the public debt crisis.
The IMF managing [...]
PARIS (Reuters) – It was a mistake to let Greece join the euro single currency when it did because its economy was not ready to form a monetary union with others in the club, French President Nicolas Sarkozy said Thursday.
“It was a mistake,” Sarkozy said, when asked during a TV interview about having Greece adopt the euro two years after the single currency was created.
“Its economy was not ready,” Sarkozy [...]
BERLIN — Chancellor Angela Merkel of Germany retreated Friday from demands that private financial institutions be pressured to participate in efforts to rescue the Greek economy, a compromise that seemed to offer some breathing space in Europe’s efforts to confront its potentially ruinous debt crisis.
Her critics in the European Central Bank and in many European capitals had argued that any requirement that private investors absorb some [...]
by Sold At The Top, SA
Yesterdayâ€™s NPR â€œOn Pointâ€ program featured a segment titled â€œFannie (FNMA.OB), Freddie (FMCC.OB) and the Sinking Housing Marketâ€ which is well worth a listen if only to witness the hand-wringing that will likely become far more common as the administration moves closer to making real changes in government sponsored housing finance.
Make no mistake, there are many interests that [...]
The creation of debt and turning it in to money!!
The key issue is debt. There is difference between individual debt and government debt. Keynesian solution was for government which will not only create economic activity through infrastructure and social spending but will all so judicially redistribute wealth. At times of sudden economic contraction it is the lower strata of the population that suffers the most. When private financial institutions stop [...]
Fannie Mae and Freddie Mac are the giant Ã¢â‚¬Å“government-sponsoredÃ¢â‚¬Â mortgage finance entities that were at the heart of the subprime crisis. These lumbering behemoths were charged with spreading the dream of home ownership at the expense of financial prudence. Together, they hold some US$5.5-trillion in mortgages and loan guarantees.
The U.S. government was forced, in the wake of the 2008 crisis, to take them both into Ã¢â‚¬Å“conservatorship,Ã¢â‚¬Â a term which sounds [...]