Fannie, Freddie guarantee is not implied, so who's Ginnie?
Ginnie Mae securities are the only MBS to carry the full faith and credit guaranty of the United States government, which means that even in difficult times an investment in Ginnie Mae MBS is one of the safest an investor can make.
And that is exactly what it says on the Ginnie Mae website.
It says exactly the opposite on the Freddie and Fannie websites.
Freddie says: "Freddie Mac conducts its business primarily by buying mortgages from lenders, packaging the mortgages into securities and selling the securities – guaranteed by Freddie Mac – to investors".
The Fannie Mae website where it used to say that Fannie was not guaranteed by the USA has been updated as of Sept 10, 2008 and no longer explicitly says that. It used to, I read it.
Ginnie Mae was created to guarantee mortgages
So what is going on here? IMHO:
The United States of America did not imply a guarantee. The bank representatives who sold these securities did. The foreign governments who bought this line of crap should be allowed (encouraged) to deal with the salesmen who sold this lie any way they see fit. In the USA we should allow the prosecution of these salespeople by the purchasers of these securities that did not have Federal backing.
Room should be made by releasing the potheads from prison.
Cuomo let them off the hook by not prosecuting and looking for jail time, and now this bailout is protecting them from the less law abiding friends that they screwed. If Cuomo prosecutes, I bet a lot of e-mails come to the surface.
Maybe its time the buyer and the seller should beware.
Here is a non-political, long and interesting read.
Politically, I would like to see a Cabinet position offered to Congessman Ron Paul.