Fannie, Freddie Bailout Yet To Achieve Goals

Almost two months ago, the government sought to revive the nation's ailing mortgage sector by seizing Fannie Mae and Freddie Mac and pumping money into the home-loan market. But so far, the measures have yet to achieve their intended effect.

Backed by taxpayers, the mortgage finance giants have spent billions in an attempt to push down loan rates and make it easier for people to borrow money to buy homes. But mortgage rates have gone up.

Read the whole story here.

Comments

[TrooAmerican]

FM and FM actually made their previous loan requirements more stringent, so that now low income people actually cant afford to get a low interest loan, and since all the banks that were doing alt-A and subprime are done doing them, there is No program to help low income persons get a loan even for a cheap house like $20,000.
So the program designed to help low inome people get cheap homes, can only help wealthy high income people but, those people dont need any help and can get better terms themselves through other banks.
So FM and FM are completely useless now.
Just dissolve them.
Sell off their assets, and get rid of them once and for all.

[darthdarcy]

We have to Reset the Sub Prime Mortgages at a fixed rate around 6% and forgive all penalties to date over 1/2 of which are illegal anyway..!

We are wasting Trillions and not addressing one of the main causes of the disease..!

[aspecialed]

This is going to take 3 to 5 years to work due to low demand and high supply in the housing market.

[tompoe]

After careful consideration, it was determined that a foreclosure moratorium would not help the banks. Another one million foreclosures need to occur, in order to maximize Bush's going away present for his cronies. Hopefully, the additional foreclosures will be quick and silent, as to not upset the public. In the meantime, the world will shift to a financial system that does not include the U.S. Welcome to the bottom of the ladder, folks. You can thank the Party of Corporate Welfare.

[PacificGatePost]

THE BAILOUT ISN'T WHAT IT WAS PRESENTED AS

More abuse of the taxpayer is coming.

Congress didn't do its job, ... again.

http://pacificgatepost.blogspot.com/2008/10/what-they-didnt-tell-us-about-bailout.html

[gcallaghan]

A UU plan to fix something is ineffective and far off the mark? How is this supposed to be news?