Your absolutely correct with a few facts missing. Two years before President Bush called for further regulation and oversight on Fannie Mae & Freddie Mac, Barney Franks, Chris Dood and Chuch Schumer were opposed because the main purpose of those organizations were to give high risk loans to low-moderate income persons who were probably going to default if any economic instability were to occur. The following TWO years, Allen Greenspan went before both banking/finance committees in both houses requesting greater controls over GSEs (Fannie Mae & Freddie Mac). The Fannie Mae / Freddie Mac problem stems from 1977, where Barney Franks who was a ranking member of the House's Finance Committee (Banking) and chief proponent in loosening lending practices to low income families and business owners with limited or no collateral commitments. The last warns of this situation was by John McCain in 2005 and early 2006 and once again the same three Democratic players objected. Yes I do agree it was at this point, or sooner, the Republicans and Independents should have raise hell in the public arena to address this problem.

Another flash for you and everyone else. If you think any politician or their advisors can reverse this situation anytime soon or ever is greatly mistaken. Throwing money at the situation was not the way to go. Re-negoitation of the 5-8% of all loans, which is the high side of all foreclosures, between the present banks who own the mortgages and the mortgagee. These sub-prime ARM loans (which ballooned to 10-13% for those mortgage holders) could be renegoitated to become 35-50 year loans at a fixed rate or 6.75 -7.25%, plus mortgage insurance for 75% of the outstanding loan. What you get now is a 40% less monthly payment for the mortgagee, about 1/2-3/4% reduction of interest over the lifetime of the loan for the banks and mortgage insurance if another economic down turn occurred.
Henry T

Your absolutely correct with a few facts missing. Two years before President Bush called for further regulation and oversight on Fannie Mae & Freddie Mac, Barney Franks, Chris Dood and Chuch Schumer were opposed because the main purpose of those organizations were to give high risk loans to low-moderate income persons who were probably going to default if any economic instability were to occur. The following TWO years, Allen Greenspan went before both banking/finance committees in both houses requesting greater controls over GSEs (Fannie Mae & Freddie Mac). The Fannie Mae / Freddie Mac problem stems from 1977, where Barney Franks who was a ranking member of the House's Finance Committee (Banking) and chief proponent in loosening lending practices to low income families and business owners with limited or no collateral commitments. The last warns of this situation was by John McCain in 2005 and early 2006 and once again the same three Democratic players objected. Yes I do agree it was at this point, or sooner, the Republicans and Independents should have raise hell in the public arena to address this problem.

Another flash for you and everyone else. If you think any politician or their advisors can reverse this situation anytime soon or ever is greatly mistaken. Throwing money at the situation was not the way to go. Re-negoitation of the 5-8% of all loans, which is the high side of all foreclosures, between the present banks who own the mortgages and the mortgagee. These sub-prime ARM loans (which ballooned to 10-13% for those mortgage holders) could be renegoitated to become 35-50 year loans at a fixed rate or 6.75 -7.25%, plus mortgage insurance for 75% of the outstanding loan. What you get now is a 40% less monthly payment for the mortgagee, about 1/2-3/4% reduction of interest over the lifetime of the loan for the banks and mortgage insurance if another economic down turn occurred.
Henry T