As if cutting rates is not ennough, Helicopter Ben is suggesting Fannie Mae and Freddie Mac to buy mortgages upto $1 million. Currently the limit for the agencies is $417,000.
Yes folks, let's have government take on excess risk. Let's get dig deeper into this hole by providing more mortgages.
Of course Charles "I want bigger mortgages" Schumer is going to run with the idea. Mr. Schumer, it was excessive lending that created the problems. Throwing more mortgages is not going to solve the issue. Also, Freddie and Fannie already have their problems. In case you did not get the memo, Mr. Cuomo is already investigating the agencies.
The government is already lending more than trillion dollars. You can read more about it here
http://housingdepression.blogspot.com/2007/11/your-tax-money-at-work.html
"That would be, I think, of some assistance to the mortgage market," the Fed
chairman said. "From the federal government's point of view, it would be taking
on some credit risk, which you may or may not be willing to do." He added, "It
would be a good idea to make the GSEs ultimately responsible for some, any
excess losses, or some part of excess losses, relative to the premiums that are
paid."
http://online.wsj.com/article/SB119455499562686966.html?mod=hps_us_whats_news
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