Phoenix home prices are down nearly 30%. Scottsdale home prices are dropping. Phoenix area Condo project sales have stalled and are revering to rentals. Foreclosures rising by staggering amounts in Maricopa County.

Many Arizona Builders are drowning and Bankruptcy is the only life preserver.

Liar-loans and sub-prime mortgages are may total more than $100 Billion in losses according to Moody’s.

The lending industry is going through tough times. Some might use the word “Crisis”

IndyMac, First National Bank of Arizona, Bear Stearns are giant names on the tombstones in the wholesale lending graveyard.

Lending giants Fannie Mae and Freddie Mac are on life-support. Most of Wall Street and some on Main Street are making funeral plans.

However, look up in the sky, it’s a bird, it’s a plane, it’s the FED to the rescue.

The FED, led by the Treasury Department has temporarily, which for means indefinitely, increased the amount of money that these GSE (government sponsored private entities), Fannie Mae and Freddie Mac can borrow from the United States Federal Reserve.

Many are calling this a Government bailout; and bailout is a bad word as most Americans want the government to mind its own business and let market economics take its due course.

I want to be clear. I am not a fan of government interfering with business.

However, THIS IS NOT A BAILOUT!

I interpret this move by the FED as a national security issue that takes extreme measures in extreme circumstances.

This is not regulations or a bailout. This is modernizing an industry.

These are new rules to prevent predatory lending, fraudulent borrowing, regulating CMO’s and other risky Wall Street investment vehicles, foreclosure prevention counseling.

These are moves to prevent a repeat of such events in the future.

The sustainability of Fannie Mae and Freddie Mac ensure the long-term viability of the mortgage and lending industry, the foundation of the real estate market and the lifeblood of our nation’s economy.

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Copyright © 2008 James Wexler *This is Not a Bailout for Fannie Mae *

Contact James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs