BP's thoughts- Fed says to Expand Fannie and Freddie

[Arthur Garcia]

BP,

I am posting here to get your thoughts on this article:

http://www.reuters.com/article/2012/01/05/us-usa-fed-housing-idUSTRE8031SE20120105

In short, do you think a change in lending standards will be good for us? Or do you think "little guys" aka non-institutional investors are going to be screwed by this?

Let's discuss. . .

[Bryan Hancock]

The cost of credit isn't the problem for real estate investors. The ACCESS to capital is. Inane rules like limiting FNMA mortgages to 10 for individuals grossly distorts the market for certain borrowers. In short, the gov-mint should not be involved.

This quote:

//Begin Quote
Many Republicans accuse the companies of having fostered the shoddy underwriting practices that led to the financial collapse. However, the firms had drawn scrutiny long before the crisis because lawmakers believed their implicit government backing gave them a competitive edge in the mortgage market.
//End Quote

from the article pretty much sums it up for me. Why do we need the government in this market? Absent the government distorting the true cost of financing none of this mess would have been possible. Doing more of what doesn't work doesn't seem like a very good plan to me.