Quote from: K-Dog on Jun 04, 2024, 12:05 PMThe conservative bias shows:
Right wing bias notwithstanding, Goobermint-guaranteed loans are mainly a risk-free cash machine for the TBTF banks. Bad loans are all covered by the taxpayer in true "Privatize the Profits, Socialize the Losses" Capitalist fashion. In addition, pumping still more borrowed money to prop up an anemic, inflation ridden economy is aspectacularly bad idea.
The FHFA also seems likely to approve a Freddie request to purchase second mortgages. The "primary goal" of the proposal, the government says, is to create a cheaper version of "cash-out refinance" — in other words, to allow consumers to pump more borrowed money into the economy at a time of persistent inflation.
Both of the quasi-Goobermint corporations are practically guaranteed to need another, even bigger bailout with the next RE collapse, which does not look too far off on the horizon.
RE