Socialism Doesn't Work

Part II in a series on the coming banking collapse

The Government Sponsored Entities: Fannie Mai, Fredy Mac are now 80% of the U.S. mortgage market.

With the decay of credit quality and the exodus of money from the mortgage industry that began last year, many of the biggest mortgage lenders have scaled back their businesses or shut down entirely.

Freddie Mac and its fellow GSE Fannie Mae are now financing more than 80 percent of all mortgages in the U.S., up from 40 percent a year ago.

Please keep in mind that the FHA guarantees another 10% of the mortgage market.  Got it?

That means the U.S. FEDERAL GOVERNMENT holds the paper on 90% of the U.S. 1 to 4 family home market.

If these mortgages were solid investments, wouldn't the FREE MARKET be in for more than 10%?

Check back later as I continue to make my case... That the U.S. banking system is likely to collapse if the energy crisis is not ameliorated somehow, and with it the U.S. $

Any INFORMED commentary or hard data would be welcome, my email is

Mentatt (at) yahoo (d0t) com