Congressional "Fix to" Fannie Mae & Freddie Mac

Discussion in 'Economics' started by limitdown, Nov 7, 2007.

What can be done?, what should be done?

  1. Rally Congress to increase the limits for these mortgages

    2 vote(s)
  2. Accept nothing being done....

    1 vote(s)
  3. Make some calls to get something done?

    1 vote(s)
  4. Sit back and watch the collapse worsen?

    6 vote(s)
  1. If for nothing other than inflation, devaluation of the dollar and time, the need to increase the maximum dollar limit of secured mortgages needs to be raised from the $414,800 or so maximum amount to an inflation adjusted rate of say $850,000.

    this would address the so called sub-prime mess by allowing so many more mortgages and properties to qualify for the government rates and guarantees.

    this would allow the packaged loans when they become securitiezed bonds to be sold and bought in the international markets with some form of credibility (which is what these non-secured bonds have become, thus creating half of this sub-prime mess and the resultant problems with these securities over the summer)

    this would allow so many to exchange their current diaster mortgages for 30 year fixed rate loans that can be maintained...

    this would solve so many problems, however no progress on this front seems to be advancing in Congress...

    what to do?
  2. wow,

    can't believe this forum got over looked...

    seems right on....

    let me skip trading today, and start some phone calling....
  3. seems this thread is more current and news worthy than ever
  4. There is no question that if the current 'correction' becomes a 'contagion' that this move will occur. I am surprised that it has not already - I took a spec options position in the mortgage insurers on the basis that it would (BTW only playing these with options positions as the downside is truly scary).

    I do note that GWB's had his first veto overturned, which might suggest that congress is starting to look to preserve their own tushes by enacting some legislation that might benefit their constituents.

    But it does seem that there needs to be some significant hurt first.