January 24, 2008

FLASH: If you're the US government, when you find yourself in a hole, keep digging. Congress to raise Fannie and Freddy loan limits

The taxpayer bailout of these two corrupt and mismanaged organizations will now be even bigger, thanks to Congress and the NAR's lobbyists.

We are truly run by corrupt monkeys who will if left unchecked destroy America. Let's see if Bush, who seems to understand the mess Fannie and Freddy are in, signs this trash. It's sad when Bush is the only hope.

Remember this day.

Both sides agreed to allow Fannie Mae and Freddie Mac — government-sponsored companies that are the two biggest U.S. financiers and guarantors of home loans — to buy loans much larger than the current $417,000 limit, aides and lobbyists said.

Frank said that lending cap might reach as high as $700,000 in areas with the highest home prices.


Anonymous said...

Maybe if we dig deep enough, we will make it to China and find all our money.

keith said...

The NAR head monkey says if the loan limits are raised, it'd be at no cost to the taxpayer.

Wanna bet?


NAR projects the higher loan limit would increase annual home sales by nearly 350,000, reduce foreclosures by 140,000 to 210,000, and increase economic activity by $44 billion. “What’s more, this would come at no cost to taxpayers – it’s a policy change that could really boost the economy,” Gaylord said.

Jer said...

This is outrageous. Whatever happened to the "free markets" working themselves out? Socialism is an albatross until Wall Street needs a handout. Then they screech please sir, can I have some more.

Why not let the home market rid itself of the current cancer so that real estate prices come more inline to salaries? The democrats are just as useless as the republicans.

Anonymous said...

These people are nuts. But we all know that the Alt-As are about to blow.

Anonymous said...

They need to be taken out.

$300 Coverup said...

Corruption at the highest level is out in broad daylight yet avg. Joe is focused on a $300 tax "refund" while he is being screwed for billions by the Govt backed bailout of NAR. I tell you Keith sometimes I think its better to just not see it because it sucks eggs when you see the sheeple being slaughtered and can do nothing.

Anonymous said...

Thank that bastard FDR for creating this mess. Insurance for his billionaire bankers at the expense of taxpayers. Of course the idiot liberals are easily fooled into thinking this is being done for the "poor" minorities. How many poor people live in $700,000 houses, you idiots? Now the taxpayers get to subsidize bankers and people living in $700,000 houses. Will we be subsidizing yachts next? You could make the case that it would boost yacht sales and help the economy. Not enough minorities own yachts. We need a new GSE to help people buy yachts.

The left-wing monkeys didn't get us out of Iraq. They were just made that the Republicans were getting all the kickbacks from the defense industry. Now that the Demonrats are in charge, they are getting a bigger piece of the pie, and they don't care about ending the war. Congrats on doing nothing.

Tangelo Mozilo said...

That's the spirit! What we need is more cheap and easy credit (implicity insured by Uncle Scam).

These congressional birdbrains are beyond hopeless.

Anonymous said...

No one has been fooled into anything these maggots are slaughtering and selling our children into slavery. If they do this in the open with no fear its over. There will be a civil war. Enjoy the money politicos and bankers I get the feeling the odds are growing you will never spend it.

Frank@Scottsdale-Sucks.com said...

Here in OC the birdbrain realtors got all excited and swore the market would "go crazy" because of the rate cut this week. Now they'll think they're all gonna return to the 2005 frenzy because of this.


edd said...

scammer rap ...

Didn't need no ejukayshin;
just friends, fun, and vacation.
Got diploma, but had no skill;
wuz pumpin gas n goin downhill.

Then Neal sez he had a deal;
sell re-fi n homes, it's unreal.
Bought some ties, polished lies;
Then eatin steaks, no more fries.

I knew little, but they new less;
Their fate was never my distress.
Goin to heven cuz I go to church,
God wont leave me in the lurch.

Now doin da perp walk;
Vito sez not to talk.
Made mistakes, raised to fail;
goin downtown for bail or jail.

shakster said...

They are out of control.
$400,000 was waining away do mostly to no financing available,and the smart investors know better than to mess with houses right now.$700,000?what for?The incomes won't qualify.These are not my relatives I swear.I gots nuttin to do with them.
If you voted,or have a sibling,or offspring involved in this mess,it's ok,we understand,you may disown them.

satan said...

Are they nuts?? Do they have any idea where this is going to take us. So now instead of GSEs and the FHA having very bad but possibly recoverable failures, we will have GSEs and the FHA saddled with all the crap fom clownifornia. Now GSEs and FHA will fail so thoroughly that they can never be brought back from the dead, as no one will have any confidence in them- ever again.

Do they realize what will happen when underwater prime and Alt-A people use this before things finally go to hell.. Seriously can they stomach real losses in the trillions.

I am betting that if this thing becomes law, many prime people will refinance one last time before things blow up. I do not know how the Fed can print money to cover this without a horrible knockon effect.

And this does not include their bailout of AMBAC and MBIA, which is guaranteed to suck out a lot more money than they think.

I think most lawmakers and bankers are so stupid and vain that they think that they can pull this off. I think this state of mind is called hubris - look up greek tragedy.

The smart ones will use this as one last chance to rape the system and escape (where?) with their loot.

Frank@Scottsdale-Sucks.com said...

I think most lawmakers and bankers are so stupid and vain that they think that they can pull this off. I think this state of mind is called hubris - look up greek tragedy.

They're so disconnected from reality it's not even funny. Our founding fathers NEVER intended to create career politicians. Their vision was you'd become a congressman, or senator, or even president, serve out your terms, then go back to your real job or real business.

Instead we're now run by clowns who have been out of the real world and real market for 20 or 30 years and have no clue what the hell they're doing.

FDR was right about everything said...

"Whatever happened to the "free markets" working themselves out?"

(leona Helmsley screech)

Free markets are for the LITTLE PEOPLE!

Like if you're in Russia, or Argentina or Hungary or Mexico or some place like that.

"Free markets" is the name of their holy club. They jack you with it, and then they ransack your pockets.

And now, if you make under $500K in the USA, you too are a LITTLE PEOPLE.

Why do you vote Republican? When you hear "welfare queen" you automatically think about some fat chick in the hood, and not the REAL "welfare queens"? Time to start blocking Karl Rove's mind control lasers.

Today, half the Democrats are effective Republicans, but it's better than being 100% Republican.

Remember the exact moment that Washington started taking this seriously? It was sometime in August/September. Before that it was jsut "subprime" and they were all tut-tutting those kind of people.

That moment was the day the JUMBO mortgage market cracked. (and it was literally about one day).

Until then, Republicans hated hated hated Fannie and Freddie, because it was welfare for minorities and poor people, and they competed with private sector banks and took some major profits which would otherwise be captured by these banks (and major donors). And of course one was from FDR and the other from LBJ.

But come August suddenly all their friends and wives started hearing stories how so and so couldn't get a mortgage or the rates had shot up. So now if rich people might have to pay more it's gonna be a big big problem, and the government lurvemeter for the Fan and Fred comedy team went through the roof.

Che's dead, get over it said...

Why don't they just admit they are doing this to "save" the Californicators?

It sure as hell wasn't done to help anyone in Idaho or Alabama.

Rat bastards.

Anonymous said...

>> There will be a civil war. Enjoy the money politicos and bankers I get the feeling the odds are growing you will never spend it.

Hmmm...makes me wonder why the US's rich and famous have been buying land (w/water and farming rights) in S. America?

crashdummy said...

It wasn't that long ago, maybe three years ago, that Freddie limit was $250,000. Even to this day, that is where it should be.

I'm convinced that our leaders could care less about our future. They can't seem to see past the current election year.

Paul E. Math said...

This turns my stomach and throws me into a blind rage.

Why would I, a guy who went to school, works hard, refuses to engage in unsafe, irresponsible borrowing, struggles to get by, be underwriting $700k mortgages?

If someone is buying a $700k home, is it too much to ask that they pay for it (including the risk premium associated with their possible default)?

Thanks for the tax refund but, of course, I don't qualify for that either.

LauraVella said...

They just lowered the limits in August, now they want to raised them back up again?

None of this makes any sense anymore. Just tells me things are really spiraling out of control.

Anonymous said...

dont worry this will not help the dumbass greedy borrowers that have subprimes - they currently have negative equity-no cash, and ZERO hope of using this to re-finance their way out of foreclosure - wont happen.

Anonymous said...

yep, here they come. i knew they would. the payer of last resort. the american working man. bail outs coming. but will it work? i don't think so. merely extending the inevitable.

Anonymous said...


When you find yourself in a hole too deep to get out of,

Dig up!


Anonymous said...

So, in 6 months we all go to Target or Wallmart and buy some more imported crap with our $300 checks....
To add insult to injury, the Govt. has to BORROW the money they are giving us to "stimulate" the economy!!! This is beyond outrageous!!!!

What happens the month after the rebates?? We are back to square one!

Tyrone said...

Here's a letter from Dick-head Gaylord (2008 NAR Pres) to Nancy Pelosi requesting an increase for the conforming loan limit...

Letter to N.Pelosi
The critical role that the GSEs play in providing liquidity to the mortgage market has never been more evident than
it is today. Unlike most proposed stimulus measures being discussed, a national conforming loan limit increase to $625,000 would have a positive, immediate impact on the housing market and the broader economy. Specifically, NAR estimates that increasing the conforming loan limit to $625,000 will strengthen current home prices by 2 to 3 percent and generate $42 billion in increased economic activity.

Salt Lake Mortgage Guy said...

"This is outrageous. Whatever happened to the "free markets" working themselves out?"

What's free market about some arbitrary cap on loan limits? I've come over to HP's side on a number of issues, but I won't concede on loan limits. Given the rise in home prices this makes sense and it will help the real estate and lending markets.