# Bush loosens the reigns for Freddie & Fannie
**URL:** https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277
**Category:** NYSpeed Off Topic
**Created:** [March 19, 2008, 10:20am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277 "2008-03-19T10:20:24Z")
**Posts on this page:** 19
**Page:** 1
### Author:  [@Nikuk](https://forums.speedlife.net/u/Nikuk)
#### Post date: [March 19, 2008, 10:20am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/1 "2008-03-19T10:20:24Z")
Great.
[http://www.bloomberg.com/apps/news?pid=20601103&sid=aHr1QGvgv1kg&refer=us](http://www.bloomberg.com/apps/news?pid=20601103&sid=aHr1QGvgv1kg&refer=us)
> [Fannie Mae](http://www.bloomberg.com/apps/quote?ticker=FNM%3AUS) and [Freddie Mac](http://www.bloomberg.com/apps/quote?ticker=FRE%3AUS) agreed to expand their purchases of U.S. mortgages and related securities after the Bush administration reduced the amount of capital the companies are required to hold as a cushion against losses.
How far are we going to leverage this country to try to get back to rapid economic growth that was barely sustainable in the first place?
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### Author:  [@Joe](https://forums.speedlife.net/u/Joe)
#### Post date: [March 19, 2008, 10:29am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/2 "2008-03-19T10:29:52Z")
\<-- going long in foreign currency
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### Author:  [@Nikuk](https://forums.speedlife.net/u/Nikuk)
#### Post date: [March 19, 2008, 11:00am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/3 "2008-03-19T11:00:16Z")
\<— going long in american debt. 😉
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### Author:  [@Fry](https://forums.speedlife.net/u/Fry)
#### Post date: [March 19, 2008, 11:05am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/4 "2008-03-19T11:05:05Z")
\<—Long.
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### Author:  [@Joe](https://forums.speedlife.net/u/Joe)
#### Post date: [March 19, 2008, 11:07am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/5 "2008-03-19T11:07:41Z")
:bsflag:
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### Author:  [@theblue](https://forums.speedlife.net/u/theblue)
#### Post date: [March 19, 2008, 11:08am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/6 "2008-03-19T11:08:38Z")
it’s not the worst idea for bush to do this as long as we are a little stricter on loan qualification.
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### Author:  [@JayS](https://forums.speedlife.net/u/JayS)
#### Post date: [March 19, 2008, 11:11am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/7 "2008-03-19T11:11:35Z")
I wish I knew enough about finance and economics to have an opinion on this. 🙂
Probably do some reading of other people’s opinions tonight.
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### Author:  [@theblue](https://forums.speedlife.net/u/theblue)
#### Post date: [March 19, 2008, 11:14am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/8 "2008-03-19T11:14:35Z")
this one’s simple… all that happened is that the loan company is now required to hold less in their reserves which allows them to give more loans with what they have.
this should help home sales and the economy in general assuming we don’t have another loan defaulting crisis like the recent one.
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### Author:  [@Fry](https://forums.speedlife.net/u/Fry)
#### Post date: [March 19, 2008, 11:15am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/9 "2008-03-19T11:15:38Z")
When does that ever keep anyone from expressing an opinion ever?
Bush is an idiot. We should just close our borders and go into 100 years of self sufficiency, then re-emerge as the new dominant world power again!
There, see how easy that was?
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### Author:  [@BooSting](https://forums.speedlife.net/u/BooSting)
#### Post date: [March 19, 2008, 11:21am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/10 "2008-03-19T11:21:37Z")
Hey, didn’t that work for Japan?
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### Author:  [@97\_B18b1](https://forums.speedlife.net/u/97_B18b1)
#### Post date: [March 19, 2008, 11:23am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/11 "2008-03-19T11:23:53Z")
i like the idea. He hasnt been THAAAT retarded lately. making some decent decisions.
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### Author:  [@JayS](https://forums.speedlife.net/u/JayS)
#### Post date: [March 19, 2008, 11:49am UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/12 "2008-03-19T11:49:11Z")
Ok, did some reading.
The reserves are set by some really complex formula that figures out how many dollars they have to keep in reserve for how many dollars they have in loans. Several years ago they go in trouble with some CEO salary scandal stuff and the government came in and said, “we don’t like the result of the formula, we’re going to make you keep 130% of that number in reserve in case we find more fraud”. All they’ve done today is moved that down to 120%, so anyone who thinks this is going to let them give out more loans than they can afford is full of it.
This will free up 200 billion dollars. Banks will sell 200 billion dollars of their good mortgages to freddie/fannie which will free up 200 billion to loan out to people with good credit looking to buy a home in this buyers market. There are reports right now of people with great credit being turned down simply because the bank don’t have the money to lend. This should help with that.
And unlike rate cuts this shouldn’t hurt the dollar.
All in all, big :tup: from me.
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### Author:  [@JoesTypeS](https://forums.speedlife.net/u/JoesTypeS)
#### Post date: [March 19, 2008, 1:44pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/13 "2008-03-19T13:44:15Z")
What grade paper are they buying w/ this $200B?
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### Author:  [@BooSting](https://forums.speedlife.net/u/BooSting)
#### Post date: [March 19, 2008, 2:04pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/14 "2008-03-19T14:04:40Z")
> [@JoesTypeS](#):
>
> What grade paper are they buying w/ this $200B?
Thats a very good question
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### Author:  [@Nikuk](https://forums.speedlife.net/u/Nikuk)
#### Post date: [March 19, 2008, 2:48pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/15 "2008-03-19T14:48:26Z")
> [@JayS](#):
>
> All in all, big :tup: from me.
.
> [@Bernanke: "...We're \*\*\*\*ed"](https://forums.speedlife.net/t/bernanke-were-ed/44892/86):
>
> Well if it goes to banks then its a bailout for them, if it goes to delinquent people then it is a bailout for them. Either way i see it BAILOUT!!! Hell you could even just say its an economy bailout if all else fails.
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### Author:  [@theblue](https://forums.speedlife.net/u/theblue)
#### Post date: [March 19, 2008, 3:06pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/16 "2008-03-19T15:06:28Z")
giving anything to a bank can be considered a bailout… however the intent and goal here is to sell more houses and boost the economy – not to give banks more profits.
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### Author:  [@Nikuk](https://forums.speedlife.net/u/Nikuk)
#### Post date: [March 19, 2008, 3:09pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/17 "2008-03-19T15:09:37Z")
STEPS THAT WILL FEED THE ROOT PROBLEM, NOT FIX THE ECONOMY. lc
and, what He / Said.
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### Author:  [@JoesTypeS](https://forums.speedlife.net/u/JoesTypeS)
#### Post date: [March 19, 2008, 3:09pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/18 "2008-03-19T15:09:53Z")
The intent is to reduce the risk of major financial institutions collapsing. Since apparently a publicly traded company is buying this paper, I’m sure it’s good paper so I doubt there will be much of a relief on the banks in trouble.
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### Author:  [@zero\_assault](https://forums.speedlife.net/u/zero_assault)
#### Post date: [March 19, 2008, 7:11pm UTC](https://forums.speedlife.net/t/bush-loosens-the-reigns-for-freddie-fannie/45277/19 "2008-03-19T19:11:00Z")
Hopefully this reduces the amount of retards I have to talk to on a daily basis
They get LOLMAD because they didnt pay there house for 6 months, and we’re taking an extra week to review them for a loan modification :hang: