Should the government rescue mortgage giants Fannie Mae and Freddie Mac?
Is corporate welfare better for America than welfare for individuals? Why?
Tagged with: corporate welfare
Filed under: Freddie Mac Questions
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absolutely not…they got themselves into trouble…they should get themselves out.
the gov. is not going to bail you out if you go bankrupt
Dude the economy is bad right now.
I say let em go under and let a bunch of Americans have their houses free.
No they shouldn’t the mortgage companies got themselves into bad situtation by giving mortgages to people who couldn’t afford them that is their problem not all of America’s. Induvidual welfare is there for people who really need it and most don’t want to be on it. No welfare is good for people who put themselves in the situation or for those who take advantage of it (corporation or induvidual).
Yes and they must. It was the investors that made this mess by not staying with the laws of lending –collateral, capacity, and credit. They wanted the money sooooooooo bad that they looked the other way and let the mortgage giants create B___l S___t programs that did not honor the principals of lending. They have now come down out from under the ether and saw the errors of their ways. It is not right to let people who are just now coming of age to not enjoy home ownership and that of future generations as well, since all banks would have to hold the money and payments in each branch. This would send the economy into a DEEEEEEEEEP depression that will take many years to overcome
Yes. They should rescue them.
Fannie Mae and Freddic Mac were once government operated. They create a Secondary market for Mortgages. Without them home loans would be much harder to get and much more costly. While the burden of saving these companies will fall on the Taxpayers in the long run it will be worth it.
Without a Secondary Market the mortgage industry would lack liquidity. A Financial marke that lacks liquidity will have ineffciencies. This lack of efficiency will cause a greater difference in the meeting of buyer’s and sellers. Think of it like selling stocks without a stock market. In order to sell your GM stock "you" would have to go out and find someone looking to buy GM stock. Now imagine this on a massive scale where you need to find someone to lend you $300k to buy a home…. Good Luck.
With Fannie Mae and Freddic Mac investor’s can invest say $1000 at a time and F. Mac/Mae will pool the invstors money and fund loans..
no,fire all the workers.