Radical Cure for Housing 'Cancer': Nationalize Fannie, Freddie

communism/socialism will only make the "Cancer" worse.

BALDERDASH!!!

Brilliant!!!! Suttmeier should run the Fed instead of Barnake. The Barnake, Paulson, Bush troika needs to go. What about Michael Blomberg and Richard Suttmeier instead. We need to stop the bloodletting in the financial markets before the dollar is equal in value to the peso, let alone the Euro.

I am sure that nationalizing these GSE's would solve all of our problems with housing, just like I don't have to worry about retirement (Social Security) medical care (Medicaid and Medicare) or anything else the government has done for me. Great idea!

Here is a man, who understands the true and real problem, WITH an excellent remmedy, whoa, the government really working for the citizens whom own it, what an idea, to bad it will probley only be that.

Richard Suttmeier is a paid shill for the banks that made all these obsurd loans to poeple, and now wants the gov to bail them out. Fannie and freddie will already need to be bailout by tax payers as it is, and this idea would only make it worse...Housing prices are still to high as it is, they need to come down to 3x median income, once that happens then poeple will buy again, except this time banks will return to the traditional 20 percent down and actual check to make sure the person can pay, please if you are a resposible saver and don't want to subsidize poeple and banks who are financial incompotent and irrisponsible go to www.stopthehousingbailout.com

What a stupid idea. Why don't we have the government bail out everyone's credit card bills next. You can hide a debt crisis for a short time by pushing it on to the government's balance sheet. But this is a shell game that any shrewd observers (i.e., owners of US government debt) will see through in a New York minute.

If you got yourself in a position to have your home foreclosed, you deserve to room with Ed McMahon and his hooker wife.

That was a bizarre viewpoint. A so-called "free market guy" espousing extreme socialism. Essentially, no one should ever lose on any chance they take. Aaron did fine job of questioning his proposal and not outright agreeing with him. Such government nationalization would accelerate inflation beyond belief. Free money for everyone! Don't worry! Uncle Sam will solve everything. The banks shouldn't be bailed out either, but remember the Federal Reserve is a private bank and it's helping fellow partners-in-crime.

Insanity - why not straddle more debt on the american tax payer. Let the housing market take the fall, let the foreclosures happen and what will happen is that prices will fall back in line to where average people can buy and hold for the long term. Nobody bailed out investors during the Internet bust.

What about moral hazard? What about all of those who have been in their homes for a long time (and have paid off their mortgages)? I don't like being forced to bail out some dirtbag speculator or some greedy hobo who signed up for a 500K home loan.

the portfolios should be taken onto the governments balance sheet and put into runoff. the shareholders deserve nothing because without government support in march, the companies would be bankrupt like carlyle and thornberg. then let the private sector figure out how to make mortgages again.

I think that is odd that in all of the analysis about the housing crisis, there is little talk of income stagnation. When homes cost much less, and rates were low, most anyone could afford a home. Ofcourse demand drove up the price of homes to the point where many home realized values in excess of double its original purchase price. However, incomes didn't rise accordingly. Now we have these same homes that at one time were valued at $150,000, costing nearly $400,000. Even with a significant decrease in value, this home will cost nearly $300,000. If a homeowners or prospective buyers income has not risen to in relation to these increases in value and pricing, all the whiz-bang solutions proposed will accomplish little.

At $1.4 million, housing wouldn't be affordable if it was 0% interest. The goal must be preservation of home equity for the rich. Home owers need outright subsidies & renters need to start paying up.

I disagree with Suttmeier. I believe irresponsible lending is to blame for the present crisis and it was in part facilitated by the government sanctioning the packaging and selling of this crap as "securitized" instuments. The lenders didn't give a damn about whether a borrower could actually afford the home since they were going to dump the loan into the "securitized" market. The money 'managers' who bought the stuff didn't really know what they were doing and just looked at the proported yields. Now they want the government to bail them out of their self inflicted problem. It seems the glib but stupid rule.

#1 I do not profess to be an expert, but I predicted the Housing Crash 4 years ago when I saw middle income people in my neighborhood buying 750K homes with little or no equity . #2 I think Mortage Broker business should be much more tightly regulated. If a Mortgage company provides a lone... they should have to Retain the Loan with no ability to sell it off like a Baseball Card to the highest bidder Aka Wall Street Speculators. If this had been the Policy, 99% of the loans would not have been Approved. Housing would not have Appreciated to such ridiculous levels. #3 No we do not need to Nationalize Fred and Fan. Another retarted idea!

There is no problem so bad that the government can't make it worse.

I made some bad investments back in 2000 and 2001. Uncle Sam, care to bail me out too? Capitalism no longer exists in the USA.

This guy is just a shill. The purpose of stories like this is to desensitize people to the fact that FNM and FRE will need to be bailed out with taxpayer money, and soon. The government has completely abrogated its responsibility in the area of financial regulation (to Wall Street's delight) and now intends to bail out everything in sight. Musolini style corporatism at taxpayers expense. Think about it when you fill up your gas tank this weekend.

OMG.........are you kidding me, what a pile of ....let the prices come down. NOONE was crying when it was going up. Now we need communism. PLeas.......Get a grip, get a job and qualify for a home.