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IWETHEY Home / IWETHEY Board / Money, Financials, and Economics Forum / Solomon???
Post #344,928
by beepster
7/19/11 6:43:47 AM
Reply
New Solomon???
"In the United States, the most common securitzation trusts are Fannie Mae and Freddie Mac, U.S. government-sponsored enterprises."

"In 1938, the government also created the government-sponsored corporation Federal National Mortgage Association (FNMA), colloquially known as Fannie Mae, to create a liquid secondary market in these mortgages and thereby free the loan originators to originate more loans,"

http://en.wikipedia....e-backed_security

Buying mortgages is what they do, expressly to provide liquidity to the market.
Sure, understanding today's complex world of the future is a little like having bees live in your head. But...there they are.
Post #344,930
by Another Scott
7/19/11 6:54:25 AM
Reply
New They buy "conforming" mortgages. Those weren't the problem.
http://www.fanniemae.../loanlimits.jhtml

Again, the issue was securitization of ARMS and liar loans and all the rest that the GSEs couldn't play in.

Wall Street was playing with bundled mortgages as securities in the 1970s. The GSEs didn't somehow force them in or "legitimize" the market after 2005. Buying into the notion that the GSEs were "equally at fault" or "just as bad" is as Wall Street in blowing up the mortgage and housing market in the US is as contrafactual as the noise about ACORN stealing elections.

HTH.

Cheers,
Scott.
     Kuttner: Fannie-Backwards. - (Another Scott) - (18) - July 18, 2011, 08:48:26 AM EDT
         Re: Kuttner: Fannie-Backwards. - (beepster) - (16) - July 18, 2011, 08:55:46 AM EDT
             It's just a reaction - (jay) - (15) - July 18, 2011, 11:14:50 AM EDT
                 They made that market, however - (beepster) - (14) - July 18, 2011, 11:19:24 AM EDT
                     You're inventing positions so you can argue against them - (drook) - (13) - July 18, 2011, 11:35:22 AM EDT
                         The government was doin' it... - (folkert) - July 18, 2011, 11:51:52 AM EDT
                         Re: You're inventing positions so you can argue against them - (beepster) - (11) - July 18, 2011, 02:12:17 PM EDT
                             create a market then legislate that the government enters it -NT - (boxley) - July 18, 2011, 02:52:18 PM EDT
                             Hmm... - (Another Scott) - (4) - July 18, 2011, 03:44:22 PM EDT
                                 You still don't get it. - (beepster) - (3) - July 18, 2011, 05:52:04 PM EDT
                                     Don't agree. But we're talking past each other. - (Another Scott) - (2) - July 18, 2011, 06:29:03 PM EDT
                                         Solomon??? - (beepster) - (1) - July 19, 2011, 06:43:47 AM EDT
                                             They buy "conforming" mortgages. Those weren't the problem. - (Another Scott) - July 19, 2011, 06:54:25 AM EDT
                             Pointers? - (drook) - (4) - July 18, 2011, 03:51:21 PM EDT
                                 Re: Pointers? - (beepster) - (3) - July 18, 2011, 05:52:53 PM EDT
                                     And when did Fannie come into the market? - (drook) - (2) - July 18, 2011, 07:42:53 PM EDT
                                         Here are some images. - (S1mon_Jester) - (1) - July 18, 2011, 11:30:51 PM EDT
                                             Growth rate shows a downward trend - (drook) - July 19, 2011, 01:21:07 AM EDT
         Konczal at Rortybomb weighs in. - (Another Scott) - July 19, 2011, 04:10:52 PM EDT

That would be like Scott taking the Wal*Mart cruise.
84 ms