Originally Posted by Frank Peter

Tim is right in his comments about the issue here and the problem is not the palin comment.


The real problem is the complete mortgage system in the US and this was known for years and this exactly is the topic to blame the US politicians. I have no idea which party is really resposible for not regulating and change the system in the US years and years ago but it´s a huge huge problem and will be very very expansive for the US taxpayer.

The banks outsourced mortgage risks to fannie and Freddie and this secondary mortgage system was mor eor less the reason for the US housing bubble where banks gave very risky loans that fuel the economy and the US housing markets. Where i come from such bubbles would not be possible becuase of different laws and in germany we have nor real secondary mortgage market and the banks have to take the risk and therefore the complete banking risk managment system is different or better we have no official public back up for private banks. You have a huge number of risky mortgages that are absolutly insane according to "normal" risk standarts.

These two companies have mortgages at an amount of 5,5 trillion dollars and i would be very suprised if at the end of the day the taxpayers costs would be lower than 500 billion according to the present sittuation of the market and the amount of money private banks had to write off.


I do not know enough about the different parties position about this topic but according to the overall fiscal and financial US policy under Bush i really hope that the democrats will do a better job an dget a chance otheriwse watch you money guys the taxes wil be very high in the future