Re: Why does Wall St always get bailed out?

On Aug 18, 10:35 pm, "sinister" <sinis...@xxxxxxxxxxxxxx> wrote:
"zzbunker" <zzbun...@xxxxxxxxxxxx> wrote in message

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On Aug 18, 1:11 pm, "sinister" <sinis...@xxxxxxxxxxxxxx> wrote:
<ruethe...@xxxxxxxxxx> wrote in message

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<snip>

It gets even worse. Chuck Schumer is introducing a bill to lift the
cap on Fannie Mae and Freddie Mac's debt portfolio (currently limited
to $1.4 trillion).

http://www.newsday.com/business/ny-bzschu0817-story,0,451942.story

Through various means, the government will end up buying most of the
mortgages the market doesn't want, and the taxpayer will foot the
bill.

This is yet another case of privatizing the profit and socializing the
costs and the risks.

Why is it that Democrats (including liberal office holders like Schumer
and
Barney Frank) are so supportive of Fannie and Freddie? (Speaking as a
liberal democrat.)

I imagine part of it is they get money from F & F, but I also assume that
there's something ideological about it.

Do they have some kind of idea that this makes housing more affordable or
something?

No, It makes housing more like houses,
Rather than what banks and IBM funds, which is apartment
blocks, rather than houses.

Which doesn't make sense if they're actually liberal, given that single
family houses with a yard are not an efficient use of space in areas of the
country where demand for land is tighter. (Hence SF homes and the attendant
lower density drive up the price of housing.)

SF Homes are a lot like Liverpool, England homes.
Neither can really be compared to other homes in the US, since both
are right next to navy shipyards.
Which is where the word "yard" comes from.






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