Comments on: Fannie Mae & Freddie Mac: What Will The Feds Do?

By: Cliff Pape

Cliff Pape — Sun, 13 Jul 2008 23:14:10 +0000

I agree Saga your comment made no sense. As an economist here are my views on what would happen. How about no more mortgages at all! That’s right if they go under the biggest demander in the market for mortgage paper is gone. If they are gone then no cash can flow back to lender to lend. So you would essentially have a financial crisis.

Naturally the government would step in before that happens. In addition, Paulson and Bernanke are surely having a series of meeting to put in contingency plans in case Freddie and/or Fannie become insolvent.

If Freddie and/or Fannie become insolvent as an investor it would be great! Because this means that eventually foreclosed properties would hit the market at greatly undervalued prices. You only have to research the Savings and loan crisis to understand how real estate investors made a mint buying these types of properties.

By: Joshua Dorkin

Joshua Dorkin — Sun, 13 Jul 2008 15:57:57 +0000

Saga – This is the 2nd comment of yours that makes no sense at all. Try to post relevant comments instead of nonsense, soley intended to promote your website. (BTW – I’ve removed all links to your site until you decide to start commenting with legit posts)

By: Real Estate Saga

Real Estate Saga — Sun, 13 Jul 2008 05:07:34 +0000

Every business contains a huge risk,that may come any time.Its better that the concern should work hard and make a way to get out of this problem

By: Mike Taylor

Mike Taylor — Sat, 12 Jul 2008 12:12:51 +0000

I don’t think the market could handle anything like this from Freddie and Fannie on the heels of the IndyMac news. Although if it does happen, it might be better to just get it out all at once.