Running with rumors, Beck accuses Fannie/Freddie of “the intentional destruction of our country”

Beck suggests admin is allowing Fannie/Freddie to change rules in order to stimulate economy, calls it “the intentional destruction of our country.” On the August 10 edition of Fox News' Fox & Friends, responding to co-host Steve Doocy stating that Freddie Mac has requested $1.8 billion in additional federal aid, Beck said:

BECK: OK, guys. This never stops. This is what -- this is what I talked about when this first happened. This never stops. Why are they doing this? Because people aren't spending enough money. So, they're going to take this money and they're going to lower -- listen to this -- lower the standards of loans, so they're going to wipe out anybody's house who's upside-down, that would include me. No. They're going to lower the mortgage so you don't have to worry about being upside-down and then encourage people who have not taken a loan out or don't qualify to take a loan out, encourage them to take a loan out, to spend that money by lowering the standards. That's what we did that got us into this mess.

DOOCY: This is like throwing a grenade back in the building

BECK: It's exactly right. It is the intentional destruction of our country.

Despite Beck's assertion that the rule change was occurring, reports of potential change were “rumors.” Contrary to Beck's assertion that the administration is “going to lower the mortgage so you don't have to worry about being upside-down,” Reuters' James Pethokoukis wrote on August 5 that such policy changes were “rumors.” Pethokoukis wrote: “Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth.” The Atlantic's Daniel Indiviglio similarly wrote on August 5 that “rumors are continuing to grow louder that the Obama administration is planning to announce a massive stimulus via the housing market later this month” and cited Pethokoukis' post.

Treasury flatly denied rumors of Fannie/Freddie policy change

Treasury spokesman: “The administration is not considering a change in policy in this area.” Reuters reported on August 5 that "[t]he Obama administration is not considering a change to its policy regarding mortgage finance giants Fannie Mae and Freddie Mac, a Treasury spokesman said on Thursday." From the Reuters article:

The Obama administration is not considering a change to its policy regarding mortgage finance giants Fannie Mae and Freddie Mac, a Treasury spokesman said on Thursday.

“The administration is not considering a change in policy in this area,” said Treasury spokesman Andrew Williams.

The comment followed speculation in recent days from analysts at Wall Street firms including Morgan Stanley that suggested the administration could tweak rules at Fannie Mae and Freddie Mac to spark a major refinancing wave.

On Thursday, a Reuters Breakingviews opinion column referred to rumors in Washington and Wall Street that the administration could soon order Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth.

Mortgage bond prices pared losses after the statement from Williams. Prior to the denial, investors were selling mortgage bonds that would sustain large losses if a new wave of refinancings took place.