I Cn't Find a Concise Debunking of This. Is It True?

[we can do it]

It is no wonder that Fannie Mae and Freddie Mac is in so much financial trouble that they have been delisted from the stock market and are trying to get another stimulus grant. These two government financial institutions are over seen by our good friend Barney Franks. This is the same Barney Franks that said that both of these institutions were sound when Bush advised of their failure when he was in office

[aquart]

1. Thank you for your concern.

[ShamelessHussy]

well, i don't believe they were taken over by the gov at that time, yet... but they are definitely

in big trouble now. (as well as many other financial institutions)

the industry is using them now to cover almost all the bad mortgages out there now, in the socialize the losses, privatize the profits, way of life the bankers/owners have carevd out for themselves in our great land nowadays.

[harkadog]

2. They haven't been delisted

Their symbols are FRE and FNM. They trade in the 30 to 40 cent range which is an indication of their problems. I don't know about the rest of your post.

[emilyg]

7. for your info

Fannie Mae and Freddie Mac Delisted by NYSE
Published on June 16, 2010 by Michael Kraus under Mortgage Rates

| More
Fannie Mae and Freddie Mac, the two government sponsored entities (GSEs) that form the underpinnings of the housing market, were delisted from the New York Stock Exchange today because their shares fell below the $1 minimum required by the exchange.

Fannie and Freddie were seized by the federal government in 2008 and put under conservatorship in order to prevent their insolvency.

[harkadog]

17. The shares traded today on the New York exchange

That can't happen if they are delisted. Maybe the delisting will occur at a later date.

[emilyg]

19. Thanks.

[Riftaxe]

3. Here is barney's semi-famous quote

From 2003

"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,''

[BeatleBoot]

4. Link?

:shrug:

[Riftaxe]

10. Link

http://en.wikipedia.org/wiki/Barney_Frank">House Financial Services Committee section[br />

or just break out google on the quote.

[BeatleBoot]

25. Thanks!

B-)

[Warpy]

13. And who was in control of Congress? Who was actually running things

in that committee?

Please excuse my memory, but wasn't that the height of the period of Republican arrogance when they failed to tell Democrats about committee meetings, barred them from the room, and made them meet separately in the basement?

It's not like Frank was getting good information, dear, even though both institutions were fully solvent in 2003. The housing boom didn't start to bust until early 2006.

However, thanks for playing.

[Riftaxe]

14. I left out the harshest part of the quote

in order to avoid knee jerk reactions like yours. oh well, here is the rest of it

"The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

Even good people can be boobs.

[Warpy]

16. Uh, he was right, son

The pressure continued and housing became unaffordable.

I suppose you slept through the Bush years and missed all that.

[Vickers]

20. What's with the "son" and "dear" shit?

:shrug:

You can make your points without being condescending.

[Name removed]

24. Deleted message

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[safeinOhio]

18. It is a fact

they were not in 2003. Lehman Brothers were secure then too.

[Contrary1]

5. FNM, FRE to Be Delisted From New York Stock Exchange

"This morning, the Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac, the government-sponsored enterprises that support the housing market, to delist “their common and preferred stock from the New York Stock Exchange and any other national securities exchange.”

Why? The stock prices were rock-bottom, and the FHFA did not see any point to “curing” the stock price by combining shares or by any other maneuver. Plus, the companies are capitalized by taxpayers via the Treasury, not the stock market, now. Their raison d’etre is to stabilize the housing market, not to make profits. In the past five years, both stocks have fallen more than 99 percent. And the news sent the share prices even lower. As of 10:30 this morning, FNM (Fannie’s stock) had fallen 42 percent, to 54 cents a share. FRE (Freddie’s stock) had fallen 46 percent, to 67 cents a share."

http://washingtonindependent.com/87151/fnm-fre-to-be-delisted-from-new-york-stock-exchange

[TheKentuckian]

6. Stock value was too low for too long from what I understand

So, they were downgraded. They still are traded but not on the same exchange, if I recall correctly.

The stock has been around a buck a share for a while.

[Lisa0825]

11. Yes, they are now traded in the over the counter market. nt

[geckosfeet]

8. Franks? Is that some kind of joke?

[we can do it]

22. Thats What I Thouhgt

I didn't mean to start this and run - had something come up suddenly and had to leave

[Name removed]

9. Deleted message

Message removed by moderator. Click here to review the message board rules.

[MadMaddie]

12. Here's the rub Fannie mae and Freddie Mac

were government run entities at one time and they were actually successful.

They were then made into public entities and put on the stock market and that is when they started having issues. Funny that theme always seems to crop up when it goes public and the stock market gets involved corruption soon follows.

[Warpy]

15. Exactly. Fannie Mae was designed to encourage banks

to write 30 year mortgages people had a chance of paying off instead of the balloon mortgages that were the standard up until its creation. Fannie would buy those mortgages from the banks, pay the banks to administer them, and collect the interest for 30 years. It worked well and Fannie was a net contributor to both citizen and government financial health.

Conservatives beholden to banks insisted on privatizing it because they wanted their filthy hands on all that interest. It was too successful to be a government project, you see. Freddie Mac was created a year or two later to avoid having Fannie Mae be a monopoly.

At the same time that one was privatized and the other created, home mortgage interest rates began to climb. Funny thing about that, huh?

Privatization always hides a screw job and nowhere is this more apparent than the bungling of Fannie Mae and Freddie Mac over the last 3 1/2 decades.

They were created for us, so that home ownership wouldn't be a sick joke and glorified renting, the mortgages re negotiated every few years before balloon payments kicked in. People could actually own their own homes after a lifetime of work. This is why they are so important.

The best thing that could possibly happen is that they once again become fully public agencies, out of private hands forever.

[MilesColtrane]

21. "Barney Franks"?

You can find an old quote that was accurate when it was spoken, but you can't spell the guy's name right?

Nice.

[we can do it]

23. I CAN - However the Boob Who Sent This On To Me Couldn't

I wanted to set him straight, thanks for ASSuming