Should the sale of mortgage-related securities be banned? NT

[Eric J in MN]

NT

[Warpy]

1. Yep

Fannie and Freddie were set up to buy up prime mortgages so that banks would feel free to lend money for 30 years at a crack. Without those two institutions, most of us would be living crammed into crummy apartments and paying through the nose for the privilege.

However, relaxing all sorts of regulations led to mortgage backed securities which reflected the possibility of being worth the face value to be traded back and forth as though they already had that value.

[Joanne98]

2. YES!

[gopbuster]

3. Utilizing a home mortgage as a gambling playtoy should be illegal...

and Immoral! Especially now that I see how they contracted the MBS's. It's a f'ing abomination.