Comments on: Barr clarifies position on Fannie & Freddie

by: David Tomlin

Tue, 22 Jul 2008 17:58:18 +0000

The press release is dated July 15.

Shouldn’t the headline be ‘Barr clarified his position on Fannie & Freddie a week ago’?

by: karl

Tue, 22 Jul 2008 17:44:45 +0000

Any thoughts as to why Mary Ruwart is posting a position on this subject on her “presidential web site? www.votemary2008.com. (click on “home.”) Maybe she’s hoping for write in votes or looking too far ahead. She should instead be concentrating on getting her personal life in order instead of trying to still sound like a presidential candidate.
(2nd try at this post—-the first one disappeared into thin air—-maybe TPW actually likes Mary now?—-not a good idea…)

by: G.E.

Tue, 22 Jul 2008 17:38:14 +0000

Zak – Did you read what I wrote?

(2) the increased regulation they submit themselves to as GSEs.

How does what you’re saying not fall under the heading of “increased regulation”?

It does.

Read.

by: Bryan

Tue, 22 Jul 2008 13:42:11 +0000

Fannie Mae is the “Federal National Mortgage Association” and Freddie Mac is the “Federal Home Loan Mortgage Corporation”. Both of them are Government sponsored enterprises (or GSE’s). They are privately owned, but publicly chartered. While they recieve no DIRECT federal gov’t aid, they do recieve many benefits, including looser restrictions, exemptions from state and local taxes, and not having to file with the SEC. This benefits are estimated to be worth $6.5 billion for Fannie Mae alone. Also, while there is no DIRECT aid from the feds, there has always been an IMPLIED aid which, as noted by both Alan Greenspan and Vernon Smith (Nobel Laureate in Economics), has led to poor investments and mortgages by brokers who believed that the gov’t would never let Freddie or Fannie fall….or in other words, to the situtation we are currently in.

by: Zak Carter

Tue, 22 Jul 2008 13:14:14 +0000

I’m no expert on Fannie Mae and Freddie Mac – but if they are already private, how is it that congess can set limits on their CEO’s pay as I just read this morning? Seems to me the government is a little more involved with them than you imply.

by: G.E.

Tue, 22 Jul 2008 12:32:11 +0000

This press release is so bogus.

Fannie and Freddie were “privatized” by Nixon (undoubtedly one of Barr’s idols, like Reagan). They trade on the New York Stock Exchange.

The two criteria that make them “quasi” private instead of fully private are (1) the IMPLIED (but not official) backing of their debt by the U.S. Treasury, and (2) the increased regulation they submit themselves to as GSEs.

So Barr says he wants to “privatize” companies that have already been privatized by (1) making the IMPLIED backing of their debt official, and (2) increasing the regulation they’re subjected to by giving more power to the Federal Reserve.

In other words, Barr wants to make the companies LESS private while calling it a “privatization” and his supporters are so ignorant they’re falling for it.