brerrabbit
Sixth Generation Native Texan
- Joined
- May 12, 2000
- Messages
- 2,609
I'm sure that some of you have already seen this but I got an e-mail yesterday that points to a beginning to the problem with mortgages and the move by Fannie Mae and Freddy Mac to accepting, or buying riskier mortgages. I do not mean to point the blame at one party or the other but merely to point out that this warning was included in the article:
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
The article was published on September 30, 1999 in the New York Times.
Link:http://query.nytimes.com/gst/fullpa...sec=&spon=&partner=permalink&exprod=permalink
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
The article was published on September 30, 1999 in the New York Times.
Link:http://query.nytimes.com/gst/fullpa...sec=&spon=&partner=permalink&exprod=permalink
