It’s funny how a company takes a lot of years, effort and sacrifices in its making, and takes only a few months to declare bankruptcy. Such was the case with Fannie Mae and Freddie Mac, a budding organization that was suggested to go out of business by the Obama Administration itself.
Fannie Mae didn’t go out without putting up a good fight. The officials witnessed $140 Billion in negative losses and delayed payments. Plus, they were having a hard time dealing with taxes as well; something that none of us can escape.
Obama Administration has done more damage, to a lot of institutes, rather than doing them anything good. The U.S. economy went from bad to worse; millions of people lost their jobs, and millions more will continue to lose them.
On the bright side, I’d say that the Obama Administration alone didn’t inflict all these damages. Our country was already at a bad turn when Uncle Bush left it, and Obama, as a President, didn’t have much to do. He did what he could to save some portion of the country. And also, the President spread flowery words and false hopes regarding different things here and there. But let’s not go into politics; the discussion would never end.
Coming back to Fannie Mae; the company had its roots tied to the Roosevelt Administration. You can already imagine the extent of its business life. However, haters, Democrats, and Republicans always eyed Fannie Mae’s business model as a catastrophe.
Fan and Fred, both of these mortgage giants are down on their knees. Their success to failure ratio was really high. But there were external factors too, which affected the companies’ work ethics. Let’s see, the economy, as I said earlier, wasn’t doing good. People’s buying power was affected and even though Fannie Mae decreased its rates, it wasn’t doing them any good.
Here’s an important question for you all:
Which company or business would replace Fannie Mae and Freddie Mac?
Drop your comments in the comment section below.