JusTalkin

Subprime mortgages pushed by Democrats in order for banks to lend to people who have no business getting a loan.  Owning a home isn’t a basic right.  You have to EARN it and BUY INTO it using your own sweat equity like putting down some of your own hard earned money or you won’t respect it enough to try to actually make payments.  Many of these people never put a dime into these homes. They just buy them because they can without it costing them a dime, move in, trash the place in many cases, and move out when it’s foreclosed upon.  They haven’t lost a dime so it’s no big deal.

For the longest time, the falsely inflating real estate market kept the banks making these loans afloat until the bubble finally burst.  Prices of the real estate they had as collateral collapsed and they couldn’t lend any more money because they didn’t have the assets to back up the loans.

Also remember that the fat cats in DC were getting special mortgage deals themselves from Freddie and Fannie so they had plenty of incentive to keep the cash flowing in their direction.  If the swamp of DC ever was drained like Pelosi falsely claimed she was going to do, a lot of dirty DC’ers would be found in the muck.

Fannie Mae had a loss of $1.2 billion in the second quarter, compared with a loss of $14.8 billion in the same period a year earlier, it said today in a filing to the Securities and Exchange Commission. The Washington-based company posted more than $147 billion in losses in the preceding 11 quarters, according to data compiled by Bloomberg.

The Treasury Department seized Fannie Mae and McLean, Virginia-based Freddie Mac, the biggest sources of U.S. mortgage funding, in September of 2008 and has spent $145 billion already to keep them solvent. In April, the Treasury and Department of Housing and Urban Development asked for public comment on how to fix the funding system after the companies’ losses on subprime mortgages pushed them to the brink of collapse.

via Fannie Mae Seeks $1.5 Billion From U.S. Treasury After 12th Straight Loss – Bloomberg.