Here we go again-US politicians creating more problems by trying to solve existing ones. The US Congress is meddling in the housing mkt trying to stop the tidal wave of foreclosures. It wil not help until prices drop to levels where real buyers emerge. In the latest move, FNM and FRE are allowed to buy larger loans with only 3% downpayment. Isn't that how the mkt got in this mess. BAD BANKING practices. God help the US taxpayer. Once again the profits are privatized and the losses are socialized.
FNM and FRE are going to lose money hand over fist as the toxic waste get rammed down their throat. The taxpayer eventually finances these GSEs and it is another round about way of the PTB unloading the problem onto the US taxpayer, and in particular the middle class.
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