I still can't believe it, how the democrats managed to fuck up this housing market and then blame republicans and capitalism. They are far better actors and politicians than conservatives. To demos, all that matters is power and the ends justify the means. Some lib in here, I can't remember who, actually thought subprime mortagages were not a cause in this mess, and freddie and fannie were minor players. That somehow, CDS were invented out of vacuum so that wall street would lend to people with bad credit out of the goodness of their heart, or greed of their wallet. unbelieveable Nice gameplan libs, browbeat the banking industry to lend money to your constituents, then actually blame the republicans and capitalism when it blows up. It 's also the same gameplan for entitlements, set up a ponzi scheme and get gov't cash to your people by claiming moral high ground, as it blows up you will kick and scream about greedy conservatives not paying their fair share. You have won, you have bought enough of the population to guarantee your success and our slide into the dull gray world of socialism. Congratulations. That was simply brilliant busing in drunken, homeless morons to the polls, and also locking in wall street at the same time. Also now that you will legalize tens of millions of uneducated mexicans, you have certain lock on future power. You also have certainly sealed the end of america as we know it. In the end, it is a cultural problem. People bought the idea that gov't should take care of them, even non-americans. People thought they were entitled to far more than they could produce, coutesy of left politicians telling them so. One more blast from the past, take a look at the workings of our new dear leaders. Get used to bowing to the new obama left, Che Guevara flags and all. Remember that Che was Castro's executioner- ends justify the means. Article from 2002: http://www.usatoday.com/money/covers/2002-05-21-fannie-mae.htm In 2002 the criticisms were mounting, fannie and freddie were involved in over 40% of all US mortgages, and therefore almost all the subprimes. ...A partial list of critics: Federal Reserve Board Chairman Alan Greenspan; activist Ralph Nader; investor Warren Buffett; FM Watch, a group of financial services companies; and assorted free-market think tanks. Throw in the editorial page of The Wall Street Journal, which recently compared the firms' risk hedges with those of fallen energy giant Enron, and it becomes clear that good works and image-building advertising might not save Fannie and Freddie from the boiling pot.... In February, The Wall Street Journal's editorial page looked askance at the companies' use of derivatives in managing their combined multitrillion-dollar debt. "The more we've looked," said the editorial, "the more they look like poorly run hedge funds: lots of leverage and snarkily hedged risk. The word Enron ring any bells?"... Nader stands as the lone lefty sounding the alarm. Buffet is curious, he wanted controls then but now sides with Obama- guess he is just trying to stay off Che's execution list. Notice how freemarket think tanks are wary, as well as the Wall Street Journal which was warning of precisely what has come to pass... Step 2: The secondary mortgage market. The lender resells the mortgage to Fannie Mae or Freddie Mac, freeing capital so that the lender can make more mortgage loans. Step 3: Packaging. Fannie Mae and Freddie Mac package a group of mortgages as mortgage-backed securities and sell them to investors, who want the interest. Or they buy and hold the mortgages originated by lenders. So fannie and freddie found ways to put earrings on a pig they were chartered to buy, subprimes. Conservatives and free market types saw through the scheme, but guess who blocked the attempts to stop the obvious time bomb, you got it- the very folks now taking power and gonna 'fix this mess'. We are so fucked in the ass... Baker, the Louisiana (republican) congressman, says SEC reporting and long-term financial stability will be probed at his hearing next month. Baker's preference is to set Fannie and Freddie loose from their charters to compete on an equal basis with other financial companies. That, he acknowledges, is too ambitious to accomplish any time soon. For now, he says, he'll settle for more effective government controls. Democrats who control the Senate are sympathetic to Fannie and Freddie, and likely to block any changes that Baker is able to push through the Republican-controlled House. Baker says he's in the fight for the long haul, comparing his efforts to melting an iceberg with a blow-dryer. After years of effort, he says, "I'm just now beginning to see the first few drops of water." Republicans wanting sound regs, democrats blocking.