Posted by: endithinks | February 1, 2009

On Fannie and Freddie, Nationalization and stopping foreclosures

Now I’m not one who is a big fan of nationalizing businesses for the most part.  I do think that there are some times when that is the only way for the companies to survive, however if multiple businesses start seeing themselves as “too big to fail” and they start relying on the government to keep them afloat we will see more of the same irresponsibility.

This article from Reuters does make some good points about how the nationalized Fannie and Freddie are actually trying to save homeowners from foreclosure as promised.  If I didn’t know any better I may be hopeful.

Forclosures

The most problematic issue in this whole foreclosure crisis is the fact that no one benefits form foreclosure and so many owners are pushing for prompt payment to counter all hte other people who have refused payment.  There needs to be some sort of moratorium on foreclosures to allow more people to catch up in their payments and obligations.  It is time to stretch out a bit more time for the renters and buyers or everyone will suffer more and more.

Interesting side note even Apartment Complexes are suffering as people who are foreclosed cannot afford the moving fees that many complexes charge as an initial moving fees and requirements.  I’ve seen many more move in specials as complexes are becoming more desperate for renters.  Many people are starting to move back in with relatives and many more are staying in vehicles and public housing.  Once again if we don’t all take a few hits in profits for a while we are looking at longer downturns.

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