Fannie and Freddie are considering writing down principals of mortgages of people who are underwater or are behind in their mortgages.
Fannie and Freddie are taxpayer owned at this point, when they were given Billions and Billions in 2008 along with all the other Wall Street banks.
Remember that banks have also been 'forgiven' for Billions and the government and banks have lied about the pay backs of the TARP funds. It was found that the banks were using more "loans" from the taxpayers through the government to pay back the TARP funds.
It seems some "experts" are saying it would be a "Moral Hazard" to allow people to have their mortgage principal lowered.
Portion from link:
Some experts just don't like the unfair, free-lunch aspect of principal write-downs. For them, forgiving principal outright seems to cross a bright line and raise all manner of fairness and moral hazard concerns.
Anthony Sanders, a professor of real estate finance at George Mason University, says this would be a "major shift in economic policy," and thinks there would be unintended consequences.
"Do we really want to go out on the hairy edge, based on a few anecdotal assumptions that this might work?" Sanders says. "I would argue no."
For Sanders, the risks outweigh the benefits.
So lets get this straight..... the Federal Reserve has printed Trillions in dollars and has given banks 'secret' loans of Trillions, which they did not want to reveal that fact for years, until they had to. The banks all this time have been using that money to gamble on derivatives and giving themselves Billions in bonuses and have not really paid back the taxpayers of the U.S....... and it would be a "Moral Hazard" to help the people?
This shows what absolute disdain the banks and the "experts" of the world hold for the people of the world.
This shows they in fact have absolutely NO MORALS!
Speaking of "Morals", Obama yesterday gave 'carte blanche' to the banks and corporations of the U.S. yesterday. Through his "Jobs Act" he is allowing banks and corporations to out right steal and falsify information about their finances.
Matt Tabbi - who is always on top of all the fraud at Rolling Stones magazine has revealed what Obama's "Job Act" is really about.
Obama is giving Wall Street and start up companies the legal right to lie and falsify all financial information to suck people into investing with them. But is that a surprise, since he gave Billions to solar companies that went out of business immediately and no one in the government is asking where the money went.
The law also rolls back rules designed to prevent bank analysts from talking up a stock just to win business, a practice that was so pervasive in the tech-boom years as to be almost industry standard.
Even worse, the JOBS Act, incredibly, will allow executives to give "pre-prospectus" presentations to investors using PowerPoint and other tools in which they will not be held liable for misrepresentations. These firms will still be obligated to submit prospectuses before their IPOs, and they'll still be held liable for what's in those. But it'll be up to the investor to check and make sure that the prospectus matches the "pre-presentation."
Will we be hearing about the "Moral Hazards" of corporations and Wall Street being allowed to outright Lie to the investors of stocks? Will we hear "experts" cry out about this legal stealing from people?
Oh, No we wont! It is because the people will be stolen from, not the banks. You only hear out cries from the media broadcasting "experts" when the people are helped. They are silent when banks and corporations are given free rein to lie, steal and cheat.
This is the "Moral Hazard" of our government and how far down the U.S. has come! Those in control are committing "Moral Hazard" against the people in every way. They have enacted laws to take our freedoms away in every form of the Constitution.
I say, let us all take on the "Moral Hazard" of this government and banks/corporations that run it.
Let us all stand up to the "Moral Hazard" of the Bank Fraud that has been happening in Foreclosures!
They don't want to write down any principals! Fine - Let's Take them to Court! Let's make them show they have a right to Foreclose on properties! They have committed Fraud through their loans, yet I have not heard an out cry of "Moral Hazard" from experts regarding throwing people out on the street through fraud! Gosh why not? In fact what I have seen is the Attorney Generals of the States, who are suppose to be the leading person making sure all laws are adhered to in each state.... give the banks a free pass with their fraud.
I am going to be concentrating as much as possible on the MERS Foreclosure Fraud once more. It seems banks have plans to start massive foreclosure proceedings against people, due to the AG agreement now.
They want people to think they can not stand up to the Fraud of banks individually, but that is not true. In fact everyone can stand up to the banks and their own individual mortgage Fraud!
Yesterday, I published an article from Jesse of USMortgageAuditors.com about MERS and how it began.
He is intent on helping people reveal the fraud in their loans.
Today 4/11/12 - Jesse is conducting a Webinar at 1 Pm est. for those who want to find out more about the FRAUD in mortgages. The link is here to register:
Let's all show who has committed the real "Moral Hazard" here in the U.S. and it certainly is not the people who have had Fraud committed against them by the banks, government and corporations of the U.S.