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Old 11-24-2010, 10:25 AM
richschneid richschneid is offline
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Location: Pittsburgh, Pa.
 
Join Date: Nov 2005
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Mein Auto: BMW 550i xDrive
Quote:
Originally Posted by diver624@aol.co View Post
Actually i think it was the govt. in the form of Fannie and Freddie that is the root of the mortgage problem and it is Fannie and Freddie that is costing the taxpayer more money than any other bailout and the money will almost certainly not be repaid, ever. It's also interesting that Fannie and Freddie are not being dealt with in any legislation. The banks have responsibility because they bundled garbage loans and sold them as AAA however the main cause of the problem is the govt. that lowered dramatically the lending standards required to get a mortgage.
In any case this is BMW forum so maybe we should get back to discussing the 5 series.
While what you say is true, that Fannie and Freddie secured the mortgages, they did not originate the mortgages or sell them to people. Who sold the mortgages, made a fee doing so, and then sold the bundled tranches as AAA securities as determined by Moody's and S&P? It was the private sector that sold, originated, and securitized the mortgages. My question is how many of these people had MBAs?

It was the gov't that lowered the standards, but the government didn't make any money selling the mortgages. I guess you are advocating for more, not less, government control over the marketplace.

But the rules regarding car loans and leases are not determined by the govenment and do not determine whether of not it is more or less expensive to buy a BMW in a given circumstance for a given owner or leasor. To get back on topic.
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