yeah I dont know where you guys were throwing around 2%.
MOST OF THE MORTGAGES IN THIS COUNTRY ARE OWNED OR GUARANTEED BY ONE OF THESE 2 COMPANIES. Well over 50%.
Everyone else is selling their mortgages and these are the only 2 buyers. I don’t know how to make it more clear. This is not 2 banks making stupid choices and looking to be bailed out. This is an entire industry hanging in the balance. If these 2 collapsed it could seriously be the end of the sub-20% residential mortgage. Do you know what happens when the only buyer of a product disappears? The product becomes worthless. Do you know what happens when secondary mortgages become worthless? Every financial institution that holds them fails. No for-profit bank is going to pick up trillions of dollars of a bad product for the greater good of the economy.
Particularly Penfold and Drifter, wake the fuck up and do research before you go spouting off this stupid shit. Everyone who reads your comments in this thread is now dumber. I award you 0 points in economics, and may god have mercy on your soul.