This is a really good idea. It's called a hedge. If the homeowners do pay off the loans, they won't lose money paying out claims, if the homeowners default, they make investment returns that pay the claims.

They should have been doing this all along.

The fact that a casino even exists for this asshole to bet is a major problem within our economy. In fact he controls the outcome so it can hardly be classified as a bet for him, unlike the average schmuck whose pocket he aims to pick.

Meanwhile Rethugs will classify this guy as a "job creator". No evidence is required of Rethugs (especially those of a libertarian bent) to hold their positions. However, they routinely demand full supporting documentation from any and all expressing facts contrary to their opinions. When you provide those facts they ignore them and then later make the same demand.

Americans ought to be dragging Ben Bernanke out and tarring and feathering this criminal, he just told the banks they can have free money until 2014 yet they won't use that free money to help homeowners or reduce the 8% interest the blood suckers are demanding on student loans. We need to get serious with these people, they've been stealing from us for too long.

I hear someone saying "Pete Rose" in the background. Betting on an outcome you can influence is damned shady and speaks to corruption at the highest levels.

Americans ought to be dragging Ben Bernanke out and tarring and feathering this criminal, he just told the banks they can have free money until 2014 yet they won't use that free money to help homeowners or reduce the 8% interest the blood suckers are demanding on student loans. We need to get serious with these people, they've been stealing from us for too long.

#3 | POSTED BY DANNI

"Free money" - no such thing. Someone provided that money and I'm betting the last name is Taxpayer. As for student loans - the students better hope they're majoring in something science or engineering related, because that's where the jobs are.

"As for student loans - the students better hope they're majoring in something science or engineering related, because that's where the jobs are." Probably so, but why should banks be making 8% on loans which have zero risk because the government guarantees them. It's theft.

Meanwhile Rethugs will classify this guy as a "job creator".

#2 | Posted by nutcase

You gotta be shittin me nut sack. Job creator? He is on the government tit just like you are.

"When you provide those facts they ignore them and then later make the same demand."

LOL... Like pretending f/f didn't write the guidelines and create the no doc or Alt A products which lenders took advantage of and helped create the housing crash?

Not sure why there is this uproar. F/F are owned by the taxpayers, and obviously we want them to hedge against losses like any other company would.

As mentioned in the very first post, they should have been doing this all along. This indicates that is the right thing to do using their defaut model structured on the current economic conditions. Things are not going to be getting better...

"Probably so, but why should banks be making 8% on loans which have zero risk because the government guarantees them. It's theft."

danni prefers that the taxpayer take ALL the risk and suffer the losses from default. As usual she has no clue about how they work, and of course is ignorant to the fact subsidized loans at a lower rate cost us money. Not to mention the student HAS TO GRADUATE before the interest kicks in. Knowing only 40% even graduate in four years, and of course the fact many are not prepared for college and drop out, wtf is DC once again backing a losing bet by taking over the student loans industry?

Here danni, obviously you never bothered to read the article:

There are primarily two types of federal student loans: subsidized and unsubsidized. The difference is that the government doesn't start charging interest on subsidized loans until the student graduates. But with unsubsidized loans, interest starts accruing right away. That can tack a considerable amount on to the initial loan amount by the time the student graduates and starts paying off the debt.

Government is good.

Be a good citizen and obey.

Freddie Mac or no Freddie Mac, homeowners are toast. So are the banks.

Americans ought to be dragging Ben Bernanke out and tarring and feathering this criminal, he just told the banks they can have free money until 2014 yet they won't use that free money to help homeowners or reduce the 8% interest the blood suckers are demanding on student loans. We need to get serious with these people, they've been stealing from us for too long.

#3 | Posted by danni at 2012-01-30 10:48 AM | Reply | Flag:

And I bet you didn't vote for Ron Paul and plan on voting for Obama. Obama is not going to do anything to get on the bad side of Mr. Bernanke.

Bernanke & Immelt. 2 great reasons to trust CheBama for 4 more years.
You got what you voted for...Idiots!!!
Thats All.

Wow, I agree with Danni. WTF!!!

But high interest rates on student loans are only half the problem. The cost of education is highly overpriced. Both public and college. High priced textbooks with yearly minor revisions are right in there too. It's past time to reel the education bubble in. Higher education has risen five times the inflation rate since the Department of Education was created. Ironically medical costs are twice the inflation rate.

High priced textbooks with yearly minor revisions are right in there too

Now we're talking. I had a psych professor who used a textbook HE wrote. It was the 17th edition and cost north of $120. He had written the previous 16 editions, so I went to the public library and found Ed 16. Minus some graphics and simple reorganization, it contained everything he was covering in class down to punctuation. I would get the reading assignment, cross-reference a classmates expensive Ed 17 and do the reading in Ed 16. What did that psych class teach me? The professor was a thief and the system was rigged to favor him.

danni prefers that the taxpayer take ALL the risk and suffer the losses from default. As usual she has no clue about how they work, and of course is ignorant to the fact subsidized loans at a lower rate cost us money.

#9 | Posted by crispee_oc at 2012-01-30 11:28 AM

There is no defaulting on student loans. The taxpayer is taking zero risk.

.

We need to get serious with these people, they've been stealing from us for too long.

#3 | Posted by danni at 2012-01-30 10:48 AM

Do any of us really know what would happen if they really did investigate and prosecute some of the richest and most powerful people in the world?
It isn't that simple, we really do have to consider the power of those we decide to prosecute. They may be able to exact more punishment on us than we can on them. Obama's job is so much more complicated than so many understand.
#13 | Posted by danni at 2012-01-27 07:43 PM

Americans ought to be dragging Ben Bernanke out and tarring and feathering this criminal, he just told the banks they can have free money until 2014 yet they won't use that free money to help homeowners or reduce the 8% interest the blood suckers are demanding on student loans. We need to get serious with these people, they've been stealing from us for too long.

#3 | Posted by danni at 2012-01-30 10:48 AM | Reply

Danni-- Fannie/ Freddie/ FHA/ VA set the rules not Banks. Banks can only collect docs and forward to them for approval to modify loans. Banks simply collect the monthly payment and admin the escrow account, the investors (GSE's and FHA/VA) dictate who does and doesnt qualify.

"There is no defaulting on student loans. The taxpayer is taking zero risk."

Errr... Student loans have the highest rate of default. As it is, the taxpayers are always on the hook when the loans are subisdized.

"Danni-- Fannie/ Freddie/ FHA/ VA set the rules not Banks."

LMAO... Good luck getting that to sink in here amongst danni and company. They contend it is the other way around. Somehow in their brilliance they believe banks would loan their own money on some of the sub prime/alt A loan without any guarantees. Of course knowing f/f currently have about 90% of conventional loans on their books, kind of hard to see how.

"Americans ought to be dragging Ben Bernanke out and tarring and feathering this criminal, he just told the banks they can have free money until 2014 yet they won't use that free money to help homeowners or reduce the 8% interest the blood suckers are demanding on student loans. We need to get serious with these people, they've been stealing from us for too long."

LMAO... Free money? Um, don't they have to pay it back?

I know Crispee, they also never consider that Banks were forced to double their reserves in this market. So double your cash reserves but lend money is the message from Washington.

He is on the government tit just like you are.

#7 | Posted by Sniper at 2012-01-30 11:13 AM | Reply | Flag:Thinks his SS and medicare are gifts form God.

LMAO... Free money? Um, don't they have to pay it back?

They borrow it for less than the interest they get on it.

---LMAO... Free money? Um, don't they have to pay it back?---

"They borrow it for less than the interest they get on it."

#24 | Posted by northguy3 at 2012-01-30 06:47 PM |

Wow... No kidding? Thanks Northy, 20 years of doing mortgages and I never knew banks loaned money at a higher interest rate than what the fed loaned them...

Now wtf does that have to do with your equal simpleton down south whining about it being free money?

Fannie and Freddie, and that means us the tax payers, have huge risks on their books. While it may not be in their business plan, such hedges make sense.

The same common denominator of our government that always equates to greed first and ethics last. We have become a corrupt nation and those who complain about it are absurdly called bigots.

Snipe,

As if you have any idea what I do.

This asswipe is part of the 1%, the real teet suckers. He's playing the same game Blankfein did. Don't pretend these asswipes aren't being held up as "job creators" by the Rethuglican spinmaesters, just like Romney. They contribute nothing to our economy. They are an overhead, sucking it dry, faster and faster.

Its all bullshit and its bad for you.

Meanwhile Rethugs will classify this guy as a "job creator". No evidence is required of Rethugs (especially those of a libertarian bent) to hold their positions. However, they routinely demand full supporting documentation from any and all expressing facts contrary to their opinions. When you provide those facts they ignore them and then later make the same demand.

#2 | POSTED BY NUTCASE AT 2012-01-30 10:36 AM | REPLY | FLAG:
Fuck you

Freddie and Fannie have been tied for 15 years to bawny fwank and his ilk.

Are they "betting" against homeowners or are they "betting" against Obama's economy? The answer the obvious.

Snipe,

"As if you have any idea what I do."

Really Nut? YOU can't even figure out f/f wrote the rules, guidelines, terms, programs, re-casts, rates and 99.9% of every conventional lender must follow before they would guarantee the mortgage. In your bizarre mindset, you think it was the other way around and banks created the system applied to mortgages loans.

We should have realized our mistake, and used the financial crisis to ease our way out of the mortgage-guarantee business.

But we didn't. They're bigger than ever, and their inevitable bankruptcy will drown us all. In a few years, you boomers who expected the government to send you a check so you could get through the money will realize that, instead, they bailed you out of your mortgage. Multiply that by tens of millions, and there's no money left for anything else. Sorry about that. Hope you can still use a shovel or a broom in your 80's, and don't mind working in the hot sun.