Can't you see it coming? Somebody's pulling the wool over your eyes.
Could this attempted government buyout of Freddie Mac and Fannie Mae actually be an attempt by the government to end the privatization of the oversight of mortgage backed securities and merge the two private corporations into one government owned corporation that we call "Ginnie Mae", the Government National Mortgage Association", and thus take control of housing financing?
After all, Freddie and Fannie control over 5 trillion dollars worth of 12 trillion dollars of the total U.S. housing financing market. That buyout would give the government control of the industry, a lions share, and some stalwart control over your property and your investments.
And just what does Ginnie Mae do, you may ask?
Ginnie Mae basically does the same thing that Fannie Mae and Freddie Mac do, but under the watchful eye of the government and the United States Department of Housing and Urban Development, HUD.
GNMA, or Ginnie Mae, supposedly guarantees, backed by the pledges and money of the government, the full and on-time payments of all of the monthly pricipal and interest payments of mortgage backed securities to the registered holders of these investments.
Mortgage backed securities, or MBS as we call them, are issued through the oversight of private investment firms like savings and loans and mortgage bankers and marketed with the assistance of security brokers. These securtities are actually large pools of residential mortgages of a large variety, including fixed rate conventional and hybrid adjustable rate loans, that are guaranteed or insured by the Federal Housing Administration (the FHA), the Veterans Administration (the VA), and the Farmer's Home Administration (the FmHA)
The pickings are ripe for investors looking for bargains just like the one Bank of America got with that first 2 billion dollar infusion, and just like the one JP Morgan-Chase got by setting a Bear trap.
"But Grandmother! What big ears you have," said Little Red Riding Hood as she edged closer to the bed.
"The better to hear you with, my dear," replied the wolf.
"But Grandmother! What big eyes you have," said Little Red Riding Hood.
"The better to see you with, my dear," replied the wolf.
"But Grandmother! What big teeth you have," said Little Red Riding Hood her voice quivering slightly.
"The better to eat you with, my dear," roared the treasury secretary, Chairman Bernanke, HUD and the President.
And that's the story of how the U.S. government took control of all private property and Fannie Mae and Freddie Mac became Ginnie Mae.
If this buyout is successful and approved by the Senate is it also intended to produce the gradual demise of the right to own private property in America?
Watch out for the wolf !!!