Fannie Mae Freddie Mac Bailout
by Pauletta from Willoughby, Ohio USA
Regarding the Fannie Mae and Freddie Mac Bailout Should the Federal Government bailout Fannie Mae and Freddie Mac? I guess that they should, but unfortunately it will be at the taxpayers expense.
I guess the reason I say they should is because just recently I had a certificate of deposit for a large sum of money at a bank that went under. Fortunately, the bank was FDIC insured, so I got my money back. When you purchase something and know the government is backing it up, you feel safe.
When people buy their homes they use Fanny Mae/Freddie Mac national mortgage because it is government sponsored. I assumed a mortgage on my home that way, over 27 years ago with a fixed 10% rate mortgage. It's funny, when you say 10% people are amazed it was so high, but I assumed it at a very low rate.
Most people shopping for mortgages during this time (1980-1982) were getting 12 - 14% interest. Fortunately, my home is paid off now.
Recently, in the past 6 or 7 years so many people bought homes with the flexible interest not knowing that this recession was going to happen. Who knew that gas would be $4.00/gallon?
I still think that Fannie Mae and Freddie Mac are the way to go and hopefully things will turn around.