U.S. Housing Market – Real Estate Mortgage Black Hole

U.S. Housing Market

Recently the headlines were stating that Fannie Mae is asking for an additional $7.8 billion dollars just to cover its losses in the July through September quarter of this year!

For my consistent readers you may recall that on September 5, 2008, I published a post titled: Govt. Take Over Of Fannie Mae and Freddie Mac Could Cost Billions. Also, again on April 4, 2010 I published another post entitled Fannie Mae and Freddie Mac – walking dead. So today’s announcement is no surprise and should be looked on as just one of many future calls for billions in bailout.

U.S. Housing Market -Improving?

Not counting this latest request, so far the government has poured $112.6 billion just into Fannie Mae alone! Needless to say, but I’ll say it any way; this is the largest bailout of any company in history!

It was just a week ago that Fannie Mae’s smaller co-conspirator Freddie Mac, requested $6 billion in federal aid to help it in its third-quarter losses!

Love all the occupy Wall Street movements going on now? It would seem that the public and the masses in general are placing blame for our current economic situation on the  major banks, when in fact it should be quite obvious, that most of the blame rests in Washington DC.  The whole real estate bubble would have never started, would have never existed, if it were not for the fact that Fannie Mae and Freddie Mac guaranteed the banks that they would purchase these junk real estate mortgages.

Let’s face it, banks know how to qualified borrowers so they have a good chance of getting repaid. But if the government says you have to make loans to borrowers who don’t meet these qualifications the banks are going to say no. The banks know that they’ll be throwing away money on these types of mortgages. So what happened, Fannie Mae and Freddie Mac said don’t worry, we will buy these sub-par real estate mortgages from you, just keep making the loans.

Just do an Internet search and see how much money the CEOs of Fannie Mae and Freddie Mac were earning and getting in benefits it’s unbelievable!

What happens when the government gets so controlling in the U.S. housing market? As usually is the case in the failed government schemes, the taxpayer ends up eating it!