once you shift the risk for freddie fannie mae or freddie mac it's putting into the government and who knows how to be all that out. i've got one more site. the home loan banks never failed because the over collateralized devotee the tory arbitrage. that's why when they went in the home loan bank had half of the collateral and there was nothing left for the fdic so it is an overkill lateralization game securitization should go because it is inherently undercapitalized and i would say that the capitol requirement should be transparent cover bonds have somewhat more capital requirements, but they tend to have overcome novelization just like i did in my first bond deal because the investors don't trust the regulators the quality of the capitol or the quality of the loans that institution as providing some and the excess collateral you have to have capital someplace. we will wrap them up and take questions to this barracks before, kevin. [applause] let me again note that both of the papers from which this deride are available online, and i think you would prefer a little bit slower so ther

freddie may and -- fannie mae and freddie mac are funding about half of that because they meet the housing goals. now, the hedge funds. this is the long story i don't think has been told. i can't say too much. this is the dumb money story. hedge funds get a management incentive that said 25% of the up side over and above a risk free rate and i don't pay back the down side. like the manager i was telling you about but it's worse. state and local retirement funds, their advisors had a similar upside incentive and no downside risk. even the pensioners would get -- many pensioners would get an extra year pension benefit if the performance was good. on the downside, the taxpayers guaranteed it. so they had a go for broke mentality. if you think about it, almost every state and local government assumes they are going to earn 8% real adjusted. the market rate on that, treasury tips, was only 2. somehow they think they are going to make three times what the market rate is, four times, and they never do. so this money is pouring into the hedge funds. they have to spend it somehow. wall street expan

as far as freddie and fannie are concerned, the mortgage finance agency is not a bailout of freddie andan yifment it places them in a structured bankruptcy, replaces them with a new entity whose revenue goes back to pay back the taxpayer. if anybody that's getting bailed out it's the taxpayer who paid $71 billion in funding those losses. host: silver springs, maryland, steven, democrats line. good morning. caller: good morning. i want to make a comment on the housing market thing. to me it seems that it was like a ponzi scheme with the banks creating credit swaup default and -- swap default and giving people loans they couldn't afford and instead of going into bank, you take out a loan depending how much money you make, they know if you work, where you work, if you don't work. if you are going to buy a car, they know that. so it seems kind of strange to me that the bank wouldn't know that people weren't -- you know, didn't have a job or didn't make enough money to pay the loan back. it seems to me that the only reason why they would have given the loan is because they knew two weeks lat

september 7, 2008 fannie and freddie were insolvent. they didn't have enough capital to pay the losses on their mortgage guarantees. the federal reserve works with fannie and freddie's regulator and with the treasury to determine the size of the shortfall and over the weekend, the treasury with the feds came in and took those firms and put them in to a limited bankruptcy called conservatorship and at the same time the treasury got authorization from congress to guarantee all of the fannie and freddie obligations. so if you held a fannie and freddie mortgage-backed security the company itself was in partial bankruptcy but the u.s. government now guaranteed it so that protected those investors. that had to be done or else there would have been an enormous intensification of the crisis because investors all over the world held literally hundreds of millions of those securities. famously the middle of september lehman brothers a broke her dealer, and i will talk more about this in a the study coming up, had severe losses and came under grea

freddie the hack received crap for that crap. but she is not calling ann romney hitler.s just comparing ann's beliefs with hitler. it's example of relativism than value are no better than nazi's. goldberg should know. hitler and stallen were leftists just like her. see what i did? i pulled a gold berg on a go berg. that's why i love anita dunn. obama's former communication director. at least she is open for the admiration for mass murders. remember this? >> mao zedong and mother teresa, not often coupled with each other. but the two people i turn to most. >> greg: she gets a wow for mao but not from mitt. >> mitt romney has a backward looking attitude, particularly when it comes to women. it will come out. >> greg: so feminists lauds a man whose great leap forward led to many million deaths, including women but see mitt as backward looking. take mitt's back word over mao forward any day. the extreme of the women's movement hung shame around the greatest power women have, motherhood. feminists are the bouncers with a message to the unborn who approach. get a life. >> bob:

with freddy mercury. it will just appear on stage for the musical "rewill rock you." >> i believe they are lying. they want everybody to be shocked when he starts singing. that's my theory. >> but queen's drummer has come out and said he thinks it is i cany. it is kind of icky. >> he backtracked. he said that and then there is a big pay day here. so i will get on the hologram wagon. >> he said he wasn't going to appear on stage with him and they aren't. it is only happening during the musical in london and not during the queen concert tour. >> people appeared with larry king and they didn't think it was creepy. >> yes, they did. >> that's the great thing of having a hologram with larry king. no fartherring. >> no squishing sound. >> the technology is not there to perfectly replicate the suspenders. >> true. >> it looks like it is part of them. it is bad. >> i want to talk about this crazy homophobic woman. you marveled at how organized she was. actually i am going to be suing her for plagiarism. all she d

freddie what about greg? greg. >> greg: i will save it for tomorrow. no, no, no. i can concur with you. >> bob: i'm bad. sorry. i thought we were trying to burn time. i didn't want to embarrass you, dead air. excuse me. >> dana: now we won't know what the word is. what if >>> welcome to" red eye." i am greg gutfeld. let's go to andy levy for a pre game report. what is coming up on tonight's show? >> thanks, deborah, and yours is no disgrace. our top story, president obama gets the women of "the view" to explain why t

so i think until we figure out how to bring capital back in and freddie freddie, you're not have capital formation or private parties in any meaningful side. >> can i jump in your? i want to be very clear that there are two pieces to what jim is talking about. one is, what are the actions that we can take without congress moving? and one of the actions that require congress to move? we laid out in a white paper last year and a set of clear steps we can take without congress moving, and we have gone down that path. we raised at fha our fees just in the way that jim described four times, including just in the last month. we have raised and even more on larger balance lost because want to bring out the capital back into. we recommended that the loan limits be lowered. they were lowered for fannie and freddie, and in addition we raise the fees are the large funds even though congress didn't take the step we recommend to lower fees. we are taking a step there to make sure there's more capital available for large loans. and we are working cooperatively with fannie and freddie, both to raise th

freddie it's $750,000? >> bob: that is a starter. elevator. >> kimberly: so mean. >> andrea: eric and i have the same plan. be at jersey shore most of the summer. >> bob: together? >> andrea: not together. >> bob: i have no summer plans because the producer here won't let me have a day off for summer. he won't. >> kimberly: porter? >> bob: yeah, porter. >> andrea: what are you doing on the weekends? same stuff -- >> bob: i'm doing my general week. >> eric: quick shout out to a 12-year-old the biggest "the five" fan on the planet? watching right now from the beach. perry loves the show. even loves bob, believe it or not. hello. >> andrea: i mentioned before i didn't really do road trips because i was always working in the restaurant every summer. so that was my summer. between my house and the -- >> bob: the bus boys. >> andrea: bob. >> bob: the kitchen. >> andrea: what about you? >> greg: i had a great job before i went to college. i was a pool monitor. which was not a lifeguard but a pool monitor at a condominium, which i was told,

seeks to address barriers to refinancing that continue to exist in the program by fannie mae and freddie mac. fha made some changes to the program last year at the urging of members of congress and the administration and continued to hear from constituents in the housing industry that more could be done to encourage competition in the refinancing market and give homeowners additional opposition options as they navigate current conditions. the housing market continues to struggle with home values far below those seen a few years ago. despite the dramatic decrease in home values since their peak in 2006, many homeowners are upholding their commitments to pay these loans back. however, as we have found in previous hearings, these responsible homeowners are at a disadvantage when it comes to refinancing the loans at today's record low interest rates. they often have limited options when shopping for the lowest interest rate, because put back risks mean they can only refinance with their current servicer. the gses have not applied benefits in a consistent manner. which puts unnecessary compli

freddie i would do it, too. >> bob: sure you would.nvaded grenada with 15,000 troops to save two american rich u.s. medical students that was a big deal. >> dana: did anyone do a movie when saddam hussein was captured and nut jail? put in jail? i don't think hollywood was falling all over itself. >> eric: this matters because there is rumors and innuendo and may be documents to suggest that the underwear bomber, the one they nailed a couple of months ago. couple of weeks ago. apparently it was leaked, the information was leaked excellently through the white house, because -- accidentally leaked through the white house because they had meeting with people that went on television. john brennan again. kimberly, again, this guy accidently said we had inside intel. >> kimberly: does anybody get this is not a good idea, the pat yourself on the back, hollywood, baby. make a movie about how awesome i am. this is dangerous for national security for people still in the theater. i shows arrogance and disregard for people out there trying to do th

they were lowered for fannie and freddie. in addition, we raised the fees for the large loans to make sure that there is more capital available to large loans. and we are working cooperatively with fannie and freddie, both to raise their g p's. that did happen. you can argue over whether they have gone far enough, but there has been an increase in the gp's there. and we're looking at ways to restructure their guarantees to be able to put more private capital. in fact, the fha market share is shrinking as a result of that. where i will agree with jim is that there's much more than needs to be done, and particularly we need action in congress to lay out a framework to going forward. >> i sense you want to jump in here, but i will ask you to respond to this question. everyone seems to agree that we need to have private capital back to finance this summer. friday and fannie make up the lion's share of u.s. mortgages. can private capital come back without gst reforms? >> as long as we have holders of $6.50 trillion in residential

freddie and danny were somewhat like an enablers to an alcoholic. -- freddie and fannie were somewhat like an enablers to an alcoholic. also were the color is very perceptive, there were a lot of -- caller is very perceptive, there were a lot of bunglers who bundled credit card debt and mortgages and put them in a security. they would use a credit card debt at a higher interest rates to push the value of the security up, but it was sold as a housing backed security which made it seem more secure than it really was. the caller is right on both points. host: brooklyn, new york. james is a democrat. caller: good morning. i wanted to know, what is the reason for -- and we have a voter registration coming up in november. why is it so necessary for the republican party to say now that everything obama wants to do? it is not necessary to have this kind of nonsense in the house of representatives. once they won the house back from nancy pelosi, they went crazy. it ain't necessary. the gas prices is of higher than they have ever been. when you do away with the racism in this country. -- in thi

i don't know whether you talked to freddie owens yet or not, but this was one of freddie's buddies at that died in freddie's arms because, again -- i won't say it was carelessness, but it was a lapse, a mental lapse. so we talked an awful lot about that. now, again, the rest of the guys went back second of the 7th, these guys went back to thanksgiving dinner and whatever and we got back and my battalion commander said we have another operation and -- we weren't back very long before we were out. but i think a better unit, because i didn't have to tell th them. make sure you have your order, your am mission, your weapon is ready to fire, don't smoke on the trail so these guys can pick you up. you need to make sure that security is out. once burned, you become a better unit. i think they became a better unit as a result of that battle. >> what was your morale like? >> low, really low. again, i had lost people, and i think all of it. i think if you watch the only time in this -- after the war, the only time i've seen hal moore break down is when he talks about this feeling that he had th

>> freddie said the other day, that all fights should end up in a knockout.sh come true. if we catch him, we'll end up in a knockout. we'll put him away. at the end of the day, we have to do more than marquez did that night to come out victorious. >> freddie, prediction of the fight? >> it's going to be action-packed. >> tim, we've seen fighters enter the ring with pacquiao with a plan. and after four, five rounds of that speed and that power and that skill, they've really stopped trying to win. what's it going to be like in the fourth, fifth round, early, you can get caught cold. and your legs can buckle and the whole thing. how do you respond at that moment? >> grab my mouthpiece. let's go to work. bring it. bring it on. i just want to feel what it feels like to be in a fight with the best pound for pound fighter in the game. i want to feel his punching power. i want to feel his speed. i want to feel what every opponent has ever faced. >> you want to feel the pain. >> i want to feel the pain. >> why? >> that's what i worked for my whole life. >> what if you

fannie mae and freddie mac. which announced back stopped by taxpayers the exposures that the banks exposed to in the mortgage backed securities that they issued and especially for investors as well because if there is a break in the chain of title because mers now has lacked legal standing in several states. that what they may end up with in the six and a half or seven trillion dollars in mortgage backed securities that are out there is suggest that perhaps these mortgage backed securities may be on securitized or unsecured and dr pham a lot of implications here is basically opened the door to this a characterization to these trillions of dollars of mortgage backed securities that break that had. rick and the economy into the financial system so when we get back we're going to talk more about that we'll have more with dr lanty pham former principal analyst and financial economist at the c.b. i will be back in just one minute stay right there also still ahead we'll have more with our whistleblower dr pham about h

it did not go to fannie and freddie. that -- congress did want to raise the g-fee. my feel is we need a government guarantee system of some form but it has to be smaller than fannie and freddie and it should be very small in good markets and increase when we need it. that will take congressional action. we cannot do it without congress. the administrator -- the director has -- if you start to raise the g-fee dramatically, the hill will come out on him all the place. we still have a fragile market. i also agree with jim that because the guarantee is underpriced at the moment, if you will. the private sector block come back until we figure out and mechanism to encourage them to come back. that is solving the fannie and freddie problem. >> one thing the administration much like to see happen is principle forgiveness on certain loans. the you agree with the director of fha that freddie and fannie should not be doing principle forgiveness at this time? >> when i was there that was an area we looked at. we had discussions in the agency. this is an area gone on since the s

freddie you always say it's something.ic: i am happy it happened. they took may day and spray painted and broke windows. it proves that occupy wall street will never be the tea party, because they can't help themselves from falling in to that anarchy, fight the power. instead of being really smart smart, -- tea party got 80 people elected to congress. do you know how many people were elected to congress because of occupy wall street? >> andrea: what if the tea party party tried to blow up a bridge? freddie the only one are in their mouth. trying to blow up stuff. >> bob: you can tell the difference when someone shows if you connect it. >> eric: >> they took the same and they sound the same. >> andrea: across the country spent on, i don't even know -- it doesn't make sense. glaze right by it. think about the taxpayers dollars spent. downtown. to deliver this non-message. >> they are standing in front of rudy giuliani going immigrant rights they are screaming unions work, unions work. and the cop is like i'm in a union. what

freddi >> greg: fun fact. obama got one for biden. >> bob: is it going too far?miliation is a good way to teach anyone a lesson. shame can teach lessons, and if it's self-imposed. you have no shame. >> bob: i just came to your defense here. against harve. >> andrea: it was awkward. you're harve. >> kimberly: i don't think this is the right thing to do at all. we had an investigation uncover you. >> bob: i'm defending you. you're giving me heat. all right, harve i'm with you. >> kimberly: stop. my point is, this is not good. as a former teacher, this is not the way, i agree with an degreia, youent to shame children and humiliate them. teaching them a bad lesson going forward in life. do you want to wear within around your neck in >> greg: this is important. shame, we have forgot man shame is. plus, i wore a dog collar for a year in my neighborhood. >> bob: the leather jacket is great. go to prince charles. >> eric: maybe not shame. but the three of us were at least jesuit high schools, weren't we all? >> bob: i got paddled. >> eric: i did as well. that, let me tel

millions of mortgages are underwater and fannie and freddie continue to lose money at the expension of the american taxpayer. in fact, while the taxpayers will spend almost $190 billion bailing out the gses, they only work product we've received from the administration is a brief discussion piece that lists three policy options. but does not mr. secretary, make noi recommendations. meanwhile millions of dollars have been spent on piecemeal programs like hamp and the so-called hardest hit fund. but as repeatedly noted none of these programs have achieved their expected results. admittedly the problems facing our housing markets are very complex as you reminded us. and there are no easy solutions. finding answers will require careful study and legislation based on facts and rigorous analysis. unfortunately rather than doing the hard work required to solve problems. some have chosen to create scapegoats. blaming certain regulators for not undertaking massive principal reductions may make for a good one day news story. but it's not an effective means for solving the problems plaguing our h

our bill will help borrowers with fannie mae and freddie mac who are trapped because of the barriers to refinancing. most estimates it is likely to help 3 million borrowers to refinance but that depends how many take advantage. our bill will make it easier for homeowners to refinance and lower mortgage payments, which is a popular and common sense way to help the housing market. discussion about what already happened in fha's harp expansion called harp 2, not all of the barriers to refinancing were addressed there. for example harp 2 removed loan to value caps for underwater homeowners but doesn't apply to borrowers under 80% ratio who theoretically should refinance. my office heard from new jersey homeowners who are exactly in this situation. fha scaled back lender liability for representations and warranties which lenders cite as an obstacle to encourage them for same as far assers and refinancers in harp 2. they did not scale back representations in warranties, cases where a different servicers was refinancing the loan which has led to a lack of competition among lenders that has

he is like freddy krueger, he keeps coming back. it is friday and the place for politics. this mom has been doing it for years. she's got bounty. in this lab demo, one sheet of new bounty leaves this surface cleaner than two sheets of the leading ordinary brand. bounty. let the spills begin. this one's for all us lawnsmiths. grass gurus. doers. here's to more saturdays in the sun, and budgets better spent. here's to turning rookies into experts, and shoppers into savers. here's to picking up. trading up. mixing it up. to well-earned muddy boots and a lot more - spring per dollar. more saving. more doing. that's the power of the home depot. this toro mower is just $334. right now, during toro days. i don't want a plunger anywhere near my coffee. not in my house. with maxwell house french roast, you let gravity do the work. [ male announcer ] maxwell house french roast. always good to the last drop.

out there are owned by freddie mac or fanny mae.hose loans do we have any estimates on how many people are actually going to be able to benefit from this based on some of those restrictions, basically you have to stop paying, you have to know all these things about your loan, and the upward and downward price of your home as well. it's a lot. >> reporter: it's a lot. here is the deal. there are millions of borrowers who are severely underwater because they took out the subprime loans, negative am more tiization loans, the loans are basically no money down. what bank of america is trying to do is drive the principle balance of those underwater mortgages down to get this. 100% of the valve the home. that tells you where we were in the bubble where people were borrowing more than the house was worth. can you get this deal? you may not be able to until d.c. resolves the fight over whether or not freddie mac and fanny mae will be principle reductions. barney frank has got even involved. the overseer for freddie mac and fanny mae have got

your written testimony you eluded to the government sponsored enterprises in particular fannie and freddie. it's been four years and you know, 95% of the mortgages originated today are dependent upon them. how important is it in your opinion that we move away from that reliance. and should they exist if their current forms? >> it's important if you think the free market financial system is is important. they were sitting here with half the capital market under control of two institutions both of which at this point are government owned. it's kind of ridiculous when you look at it. >> i assume you think having a free market system is a good thing. >> got only you, but i think some other people are, too. right now the residential mortgage market is dependent on two defacto government institutions, fannie mae and freddie mac. how do we wean away from that? it's going to take years. let's not make the same mistake of having the quasi government institutions half public, half private. they're private when they're making money, and public when they're in trouble. that's a recipe for not very dis

the republicans have been in power since 2011 and have done zero on fannie and freddie. what's holding you up? >> i'd like to reclaim the chair's time. >> i wish you would. >> but i do. this would conclude the first panel. i do want to thank our two colleague for the a lively discussion. i appreciate you very much for being here. now we will have the second panel be seated. >>> i would like to introduce the witnesses on our second panel. dr. jeffrey harr ner -- dr. peter kline. without objection, your written statements will be made part of the record. you will now be recognized for five minutes. summary of all your testimony and we'll begin. >> chairman paul, ranking member clay. >> put your mic up close. is it on? >> and distinguished members of the committee. it is an honor to appear before you. left of the market the production of all goods including money passes the profit and loss test of socially beneficial production. like all private enterprises a gold mining company produces if the revenue exceeds the cost of buying its inputs. it's production the beneficial be

dealing with fha, dealing with gses, fannie mae and freddie mac, there have been a lot of proposals by the administration to deal with that. write-downs. the basic property laws, you've got a first lien which is the first priority. you've got a second lien, right? which is the second. if you -- if the value of the first lien goes down, or you pay it down or negotiate it down or whatever, then the value -- it would logically follow the value of the second lien would go up. is that correct? generally. generally speaking. >> generally speaking, yes. >> assuming the property values were there. if you had a $250,000 mortgage on a piece of property, first lien, and fannie and freddie or fha, whoever, government-sponsored enterprise, government-run, had a first mortgage, and you ladhad a $50, second mortgage, and if you, by negotiations or something, lowered the $250,000 lien to, say, $180,000, just throw that out, wouldn't it follow that the value -- assuming the property was worth so-and-so -- the value of the second lien would be enhanced, perhaps? >> if there's no requirement that you wri

yield, the republicans have been in power since 2011 in january and have done zero on fannie and freddie. what's holding you back? >> i'd like to reclaim the chair's time. >> you've been in power. >> i wish you would. this will conclude the first panel. i do want to thank our two colleagues for a lively discussion and appreciate you very much for being here. now, we will have the second panel be seated. >>> we'd like to introduce the witnesses on our second panel. dr. jeffrey herbenger. the chairman of the department of economics at grove city college, dr. peter klein is a associate professor of social sciences and director of the mcquinn center for research at the university of missouri. dr. john taylor is the marion robert raymond professor of academics at stanford university and george p. schultz, senior fellow in economics at the hoofhoof -- hoover institute. dr. james galbraith is the lloyd and benson junior chair of government business relations and professor of government at the lyndon b. johnson school of public affairs at the university of texas at austin. dr. alice rivlin is a

i mean, i specifically asked for fun-time freddie number 3, and they sent fun-time freddie number 11,less, and everybody knows that. he's clearly got a drink problem. his hands were shaking so much he could barely make the balloon animals. you know, i don't think i've ever seen kids go quite that berserk. i know, and at the school gate this morning brad's mum couldn't look me in the eye. i saw brad at football. he looks... okay. yeah, because she's combed his fringe over the wound. at least now he's got a healthy respect for first-floor windows and gravity. it's all part of the learning curve. learning plummet. ( phone ringing ) hello. oh, hi, jane. no, alexa's fine, yeah. "you'll be with us shortly." where are you now? you're just leaving your own house. well, that's going to take more than ten minutes at this time of day, jane. it's rush hour, isn't it? no, no, no, no. no sweat. no sweat. we'll, uh... we'll just see you when we see you. cheesy brain. gosh, that was fast! do you know what? i've just found another letter that i meant to post. could you be really, really, really grown-

for these fannie and freddie loans taxpayers already own the risk. at these homeowners default regardless of whether we allow the homeowner to refinance or not so stopping homeowners from refinancing into lower-cost loans where they are less likely to default, homeowners and taxpayers and is obviously in my mind terrible policy. fha fennie needs to change this now. it's urgent because we don't know how long low interest rates will remain and once interest rates rise it won't make any sense for homeowners to refinance. every day the fhfa and congress delays is another day that both taxpayers and homeowners are losing millions of dollars. finally, one of the best aspects of the boxer menendez responsible homeowner refinancing act is that according to preliminary cbo estimates, it will stop a lot and save taxpayers money because fewer homeowners will be -- when there glover -- mortgage payments are lower. mr. chairman i appreciate that opportunity and i have two questions. one is to mr. emerson. do you believe the current harp two policies give an advan

univisión presenta.famili familia con suunivisionheuna fae >> ¿pero qué, qué le tienes que decir a freddy