Who caused the current mortgage/credit crisis, one where financial institutions have taken $500 billion in writedowns and Uncle Sam is ready to start buying $700 billion in CMBS (crummy mortgage-backed securities)?
Answer: Fannie Mae and Freddie Mac.
If you heard Sen. "Libby" Dole (R-N.C.) vent her spleen at yesterday's Senate hearing on the mess, you would've thought that Franklin Raines, ,Jim Johnson, Leland Brendsel and a host of other former CEOs might be headed to the "Big House."
Sen. Dole said the current crisis is "linked to mismanagement of Fannie Mae and Freddie Mac." Of course, Ms. Dole needs to start reading the trade press and a few of the current books out on the crisis.
But the mess was definitely created by Wall Street -- not Fannie and Freddie. Wall Street financed the non-banks, bought their subprime loans, packaged them into securities and then speculated on the bonds by using credit default swaps.
Ms. Dole, of course, is hoping to pin the crisis on the GSEs because as everyone knows the Democrats were bought off (in the form of campaign donations) by Fannie and Freddie.
Then again, so too were the Republicans -- but to a lesser degree. Ms. Dole almost broke her arm patting herself on the back, pointing out that she tried to impose tighter guidelines on the two GSEs many moons ago.
Of course all of this is helping the Home Seller Assist program created by John Alexander and also known as We Provide The Cash. Tune in each Tues and Wed at 7PM-Central at http://www.fastbuyerloans.com for a webcast followed by a Q&A session.
Then head over to http://www.myspace.com/homebusinessnow and read the tips in our blog located there.
Thanks.
Larry Potter
847-872-4047
http://www.WEBUYFASTNOW.COM
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