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Fannie & Freddie Repackage Defective Loans and sell them to Naive Investors.

i agree that the government should get out of the housing market entirely and that the free market would come up with innovative solutions but for the politically connected and wealthy that are making huge profits from the present system.

Livinglies's Weblog

By J. Guggenheim/Lendinglies staff

Fannie Mae and Freddie Mac have separately announced sales of non-performing loans this week.   Offsetting these toxic mortgage securities target smaller investors, including nonprofits and minority- or women-owned businesses who can’t afford to take the hit when they realize they bought defective repackaged securities the big lenders now avoid.

In 2017, through both Fannie Mae and Freddie Mac, the Treasury guaranteed 70% of all new mortgage lending. The taxpayer’s total exposure to housing is unfathomable, at over $6trn, or 30% of GDP, but it is hidden off the government’s balance-sheet. Reform is long overdue but until then- keep repackaging defective merchandise and selling it off to the highest bidder.

    The Senate Banking Committee, is considering a draft proposal to replace them with multiple privately capitalized firms, whose equity holders would suffer first during any slump. The government would maintain an insurance fund, supported by fees…

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Two Damning Videos Point to Parkland School Psyop — The New Modern Man

The United States – in a true display of Neoconservative philosophy based on using the mainstream media to invent phantom enemies in order to influence public policy (as documented by BBC filmmaker Adam Curtis in a film that strongly suggests most, if not all “terror” events since 2001 have been staged) has unleashed yet another […]

via Two Damning Videos Point to Parkland School Psyop — The New Modern Man

This post details some of the reasons why I no longer reside in the United States. I grew up there and love the country and its ideals. Unfortunately the United States is no longer a republic based on democratic principles.

Government Bankruptcies: Needs of Citizens Take Priority Over Creditor Claims (Assured Guaranty v. Puerto Rico) — MEDIATBANKRY

By: Donald L Swanson Puerto Rico’s long-standing financial straits, rendered more dire by Hurricane Maria, create an issue of bankruptcy priority: should available funds be used to, (i) address hurricane devastation and daily citizen needs, or (ii) pay creditor claims when due? –The answer to this priority is simple and easy in Puerto Rico: citizen needs […]

via Government Bankruptcies: Needs of Citizens Take Priority Over Creditor Claims (Assured Guaranty v. Puerto Rico) — MEDIATBANKRY

I agree that the needs of the citizens should come first.  I would not be surprised if there is more litigation in the bankruptcy courts regarding this issue.

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