What is the purpose of the federal government buying out the mortgage debts in the US?
by 
psych31mwo says call me Mark
ANSWERS: 1
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The primary purpose is to stabilize the real estate market and restore value to some of the performing sub-prime, Alt-A, and other non-agency loans that Fannie and Freddie now hold. This will take time. I also believe that "mortgage debt", as you call it, is only the tip of the iceberg. I suspect that major international banks came under pressure in the derivatives market, worth trillions more than the mortgage-backed securities held by Fannie, Freddie, et al. I am opposed at any nationalization of businesses, even quasi-governmental ones.
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