Re: [A-List] Mortgages

["Anne Williamson" <annewilliamson@xxxxxxx>]

Your concern is well-placed, Sabri.  Before this
to-do is over, the federal govt will probably control
the entire residential market -- Freddie and Fannie
have been busy "creating" money through re-financing
mortgages and then selling on the bundled instruments
as "investments".  Thus were the credit card companies
kept solvent by the indirect hollowing out of individual's
home equity -- and money kept flowing to Wall Street.

The worst of this mortgage outrage was in the sub-prime
market, giving loans to the unqualified -- not a favor!
Many of those people who are now struggling to keep
their property by plowing every bit of cash they can
manage to scrape together for payments to the debt holder
will lose everything.  Or be on the debt treadmill forever -
sorta like what the IMF does with the 3rd world.

Debt = Slavery

Anne


----- Original Message -----
From: Sabri Oncu <soncu@xxxxxxxxxxx>
To: ALIST <a-list@xxxxxxxxxxxxxxxxxxx>
Sent: Friday, April 26, 2002 1:45 PM
Subject: [A-List] Mortgages


> And this is related to my obsession with the mortgages.
> Apparently, I am not the only one worried about Fannie Mae and
> Freddie Mac. They worry Paul Volcker too.
>
> Sabri
>
> ==============
>
> Mortgage agencies worry Volcker
> By Jenny Wiggins in New York
> Financial Times
> Published: April 26 2002 02:31 | Last Updated: April 26 2002
> 02:37
>
>
>
> Paul Volcker (pictured), the former Federal Reserve chairman, on
> Thursday joined the debate over the role of Freddie Mac and
> Fannie Mae, suggesting the government-backed mortgage agencies
> may be getting too big.
>
> The agencies, which finance mortgages worth billions of dollars
> in the US, have been perceived by some to have an unfair
> advantage in their business over private competitors because they
> are sponsored by the government.
>
> More recently, concerns have also been raised about the
> increasing size of their debt and the exposure of the agencies'
> hedging counter-parties to financial risk.
>
> Earlier this week, Alan Greenspan, the current Federal Reserve
> chairman, warned counter-parties against relying on the
> perception of government support when assessing risk exposure to
> the agencies.
>
> Mr Volcker, who is now chairman of the independent oversight
> board for the accounting firm Andersen, told the Bond Market
> Association yesterday that, from his knowledge, the agencies have
> good accounting and risk management systems. He added, however,
> that when they were established by Congress, their mandate was
> not to dominate the markets. "I think the issue with Fannie Mae
> and Freddie Mac is one of size."
>
> The association's annual meeting also heard from Freddie Mac's
> chief investment officer, Gregory Parseghian, who said that some
> of the criticisms of the agencies were legitimate with respect to
> the large share of capital they have been able to accumulate.
> "But that was the choice Congress made when it created them," Mr
> Parseghian said.
>
> Full at:
> http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3N
> 2BA8H0D&live=true&tagid=ZZZOMSJK30C&subheading=US
>
>
>