The government caused the current economic problem we are having.
Now the government is coming to the rescue of the government.
And we are screaming for them to do it before it is too late.
Are we really that stupid?
Fannie Mae and Freddie Mac were created to finance loans that are HIGHLY RISKY (Sub Prime, 100% financing, etc.) by the government because the Democrats passed a law that forced banks to offer up money to do this OR Community Organizers (sic) who would not allow a bank to expand into their area by causing distributions unless they offered mortgages to sub prime borrowers.
Now... It was stupid for big companies to buy these bundles. It also is going towards the basic fact that when you have a large organization it is difficult to keep a pulse on all the small things that are happening which add up to really big things. There are many people to blame here... but at the same time perhaps it's time for us to look in the mirror and see the real problem. We the People have let this get this way. We allow the Government to run rough shot over us. Now it's time to pay the piper. We can soften the landing... which will embolden those who did it to us the first time... or we can make it so that we actually have to look out for ourselves.
Neal Bortz has a great plan... he says let the government take over, forgive the debt by keeping the person in the property as a PAYING tenent, then offer the properties at a discount to investors with a guaranteed lease. I'll get in on some of that... And the people get to keep their homes, others who weren't so stupid get to profit, and capitalism lives.
-End of Ramble