Just when you though the housing crash was over, along comes the news that Fannie Mae (Phonie) suffered a stunning first quarter loss of $13.1 billion and Freddie Mac (Fraudie) lost $8 billion:
96.5% of all originated loans are now government backed. Remember Fannie Mae and Freddie Mac and their epic continuing losses? Apparently banks have no problem originating loans as long as they can use the government money to gamble in the stock market.
Wall Street enjoys handing your money out. They like to beat on their chest about the free market but have no intention of lending out their own money (i.e., your bailout funds). In fact, Wall Street has convinced itself that your money is basically their hard earned cash. For the risky housing market, they’ll be the middleman in lending out mortgages that are defaulting in mass. What do they care if the economy is on stable footing? They don’t care if you lose your job and can’t pay the mortgage in one or two years. By then, the banks will be gambling in another bubble putting another sector of the economy at risk.
…..…..7,140,000 mortgages currently in default or 30+
…..…..days late (14 percent of all U.S. mortgages).
…..…..24% of those that have made no payment in the
…..…..last year are still not in foreclosure!
…..…..39,000 people have not made a payment in 2 years.
Ironically the only thing that seems to keep people in their home is when they stop paying their mortgage!
We was robbed.