Another weekend, another bailout...

[WhipperSnapper]

The banks can pass the taxes on to someone else simply by lowering the prices of the houses to where people can afford to buy them and take them off their hands. They can take the losses now or take them later.

 

[manowar821]

LET THEM DIE!

And KILL the fed!

 

[Slew Foot]

Let me try and put 2 and 2 together here:

Freddie and Fannie back 5 trillion in home loans

9% of current home loans are behind or in foreclosure

Taxpayers about to be assed out for 500 billion?

 

[OS]

if this pisses you off, i suggest going to your local congressional reps office and telling them.

 

[Craig234]

Originally posted by: BoberFett
Government in the mortgage business. This should end well. :roll:

"Governmnt" can mean FDR government or GWB government - radically different things, apples and moon rocks.

I don't think the government will inherently do bad, but that bad government will do bad. The thing is, the experts who actually support the public interest are not in power now.

 

[LegendKiller]

Originally posted by: Slew Foot
Let me try and put 2 and 2 together here:

Freddie and Fannie back 5 trillion in home loans

9% of current home loans are behind or in foreclosure

Taxpayers about to be assed out for 500 billion?

Great way of obfuscating reality. First, tell me what % of prime loans are delinquent, then show me recent roll rates for those loans.

 

[LegendKiller]

Originally posted by: smack Down

Originally posted by: Thump553

Originally posted by: smack Down
So the tax payers get to take a bath and paulson gets to keep his pals on wall street happy.
Heck of a job, Paulson

No one has even ventured a guess as to the total cost of these takeovers. It is pretty dependent on what happening in the housing market-if prices continue to slide and foreclosures continue to increase, the taxpayer is going to take a real beating. But if there is a recovery in prices and a lessening in the rate of foreclosure, it's possible the government could even make money off the deal. What the government is getting as collateral, so to speak, is mortgages on a large percentage of US homes (I think something like 50%). These aren't junk subprimes for the most part-good verified borrowers-but they are highly leveraged (no 20% down ones, for the most part).

I don't think think should be characterized as a bailout of Wall Street-there is going to be tons and tons of pain there. More correctly it is an attempted jumpstart/bailout of the US housing market and calming the jitters of outseas megainvestors who currently hold lots of FNM/FRE debt instruments.

No it is a bailout of wall street, and china. Has nothing to do with the housing market which will and should continue to have falling prices and high foreclosures.

What happens if nobody can get mortgages?

 

[LegendKiller]

Originally posted by: senseamp
So basically Fannie was seized because the government thought it should continue issuing more bad loans to promote home ownership even though it was in danger of losing its shirt on the ones it already issued? So the government is not just in the mortgage business, it is subsidizing mortgages with taxpayer money when it is so imprudent that private company won't do it, and it's seizing that private company to put a capitalist face on this socialist exercise.

giving people who can afford access to homes, access to homes, isn't a horrible thing.

It's when that practice is abused that it becomes a problem.

 

[43st]

I'm watching the ticker this morning and I'm just amazed that the Fannie/Freddie fallout is causing a huge uptick in stocks?!?! So much for logical markets..

I'll give it until noon to crap out...

 

[theeedude]

Originally posted by: LegendKiller

Originally posted by: senseamp
So basically Fannie was seized because the government thought it should continue issuing more bad loans to promote home ownership even though it was in danger of losing its shirt on the ones it already issued? So the government is not just in the mortgage business, it is subsidizing mortgages with taxpayer money when it is so imprudent that private company won't do it, and it's seizing that private company to put a capitalist face on this socialist exercise.

giving people who can afford access to homes, access to homes, isn't a horrible thing.

It's when that practice is abused that it becomes a problem.

Well, if they can afford access to homes, they wouldn't need government subsidized loans.
Taxpayer is now subsidizing those loans by accepting risk through Fannie and Freddie.
So these people you claim can afford access to homes can actually only afford it if the taxpayer is taking on some of the risk to reduce the interest rates, not if they pay for their own risk. That is like someone saying they can afford food because they got food stamps.

 

[alchemize]

The mortgage markets are LOVING this move.

http://www.mortgagenewsdaily.com/mortgage_rates/blog/

Low mortgage rates will help smooth out the subprime mess and keep the home market somewhat lubricated.

 

[LegendKiller]

Originally posted by: senseamp

Originally posted by: LegendKiller

Originally posted by: senseamp
So basically Fannie was seized because the government thought it should continue issuing more bad loans to promote home ownership even though it was in danger of losing its shirt on the ones it already issued? So the government is not just in the mortgage business, it is subsidizing mortgages with taxpayer money when it is so imprudent that private company won't do it, and it's seizing that private company to put a capitalist face on this socialist exercise.

giving people who can afford access to homes, access to homes, isn't a horrible thing.

It's when that practice is abused that it becomes a problem.

Well, if they can afford access to homes, they wouldn't need government subsidized loans.
Taxpayer is now subsidizing those loans by accepting risk through Fannie and Freddie.
So these people you claim can afford access to homes can actually only afford it if the taxpayer is taking on some of the risk to reduce the interest rates, not if they pay for their own risk. That is like someone saying they can afford food because they got food stamps.

I would agree that the situation is ideal. I would also agree it shouldn't have ever happened to begin with. However, we must deal with the situation at hand, then follow up to make sure it doesn't happen again.

Reality is a bitch.

 

[Slew Foot]

Originally posted by: LegendKiller

Originally posted by: Slew Foot
Let me try and put 2 and 2 together here:

Freddie and Fannie back 5 trillion in home loans

9% of current home loans are behind or in foreclosure

Taxpayers about to be assed out for 500 billion?

Great way of obfuscating reality. First, tell me what % of prime loans are delinquent, then show me recent roll rates for those loans.

According to JPM 4% and rising, and freddie and fannie didnt cherry pick the best and greatest loans out there, they got pretty much a cross section of what everyone else got.

 

[LegendKiller]

Originally posted by: Slew Foot

Originally posted by: LegendKiller

Originally posted by: Slew Foot
Let me try and put 2 and 2 together here:

Freddie and Fannie back 5 trillion in home loans

9% of current home loans are behind or in foreclosure

Taxpayers about to be assed out for 500 billion?

Great way of obfuscating reality. First, tell me what % of prime loans are delinquent, then show me recent roll rates for those loans.

According to JPM 4% and rising, and freddie and fannie didnt cherry pick the best and greatest loans out there, they got pretty much a cross section of what everyone else got.

What is delinquent? Anything not exactly current (0-30 days) versus actual delinquent (30+)?

What is the roll-rate between buckets?

The GSEs only originated conforming loans, compared to what is composed in the prime bucket? The whole prime bucket will include non-conforming.

 

[Vic]

The Bush admin just nationalized the mortgage industry in the United States. Take careful note of that. Next up, the automakers.

George W Bush is now the most socialist President in history.

 

[fskimospy]

Originally posted by: Slew Foot

Originally posted by: LegendKiller

Originally posted by: Slew Foot
Let me try and put 2 and 2 together here:

Freddie and Fannie back 5 trillion in home loans

9% of current home loans are behind or in foreclosure

Taxpayers about to be assed out for 500 billion?

Great way of obfuscating reality. First, tell me what % of prime loans are delinquent, then show me recent roll rates for those loans.

According to JPM 4% and rising, and freddie and fannie didnt cherry pick the best and greatest loans out there, they got pretty much a cross section of what everyone else got.

Actually if I'm not mistaken Fannie and Freddie do get better than average loans. Isn't the whole 'sub-prime' thing pretty much for people that couldn't get Fannie or Freddie backed loans?

 

[Slew Foot]

Originally posted by: Vic
The Bush admin just nationalized the mortgage industry in the United States. Take careful note of that. Next up, the automakers.

George W Bush is now the most socialist President in history.

:thumbsup:

I love my country but hate my government.

 

[LegendKiller]

Originally posted by: eskimospy

Originally posted by: Slew Foot

Originally posted by: LegendKiller

Originally posted by: Slew Foot
Let me try and put 2 and 2 together here:

Freddie and Fannie back 5 trillion in home loans

9% of current home loans are behind or in foreclosure

Taxpayers about to be assed out for 500 billion?

Great way of obfuscating reality. First, tell me what % of prime loans are delinquent, then show me recent roll rates for those loans.

According to JPM 4% and rising, and freddie and fannie didnt cherry pick the best and greatest loans out there, they got pretty much a cross section of what everyone else got.

Actually if I'm not mistaken Fannie and Freddie do get better than average loans. Isn't the whole 'sub-prime' thing pretty much for people that couldn't get Fannie or Freddie backed loans?

The GSEs also purchased 400-600bn worth of asset backed bonds, backed by subprime mortgages. They were allowed to do so in order to increase liquidity in that area.

While these bonds are backed by subprime, they aren't CDOs, and are probably reasonably well structured against losses. I am not positive though.

 

[chrisho]

where are the calls to put their executives into jail like Enron?

or do donors to political parties become immune

 

[jman19]

Originally posted by: alchemize

Originally posted by: Craig234

Originally posted by: alchemize

Originally posted by: Lemon law
Yes on balance, the republican party line of not regulating lenders is the proper policy, a mere 6 trillion dollars is a small price to pay to keep the no regulation mantra alive. Four more years eight more years, anything is better than Bill Clinton and a balanced budget. Ken Lay died an innocent man, a financial guru that should inspire us all, and the embodiment of the American dream.

LOL you are such a tool...

H.R.3221
Title: A bill to provide needed housing reform and for other purposes.
Sponsor: Rep Pelosi, Nancy

Vote Counts: YEAs 72
NAYs 13
Not Voting 15

Um, that's a bill that's already law, introduced Jul 2007.

And Nancy Pelosi is speaker of the house, you posted a Senate vote for some reason.

The corporatocracy runs things, but it's funny, unless the government put out a press release saying that, the public will largely not notice. 'Who do you want to drink beer with'.

Yes, that's the bill that became law, that approved the misnamed "6 trillion" that the OP refers to.

Pelosi introduced it, and it passed the Senate with wide support. So Lemon Law seems a bit confused as to the source of this spending.

Seems like it came from both parties to me, there were plenty of R's that could have voted against this but didn't.

 

[fskimospy]

Originally posted by: chrisho
where are the calls to put their executives into jail like Enron?

or do donors to political parties become immune

Why would we put the CEOs in jail? I'm not aware of any evidence of wrongdoing.

 

[ElFenix]

why do two companies have 50% of mortgages?

 

[waggy]

Originally posted by: Vic
The Bush admin just nationalized the mortgage industry in the United States. Take careful note of that. Next up, the automakers.

George W Bush is now the most socialist President in history.

yeap they are already talking about it.

 

[bamacre]

Originally posted by: Vic
The Bush admin just nationalized the mortgage industry in the United States.

But what choice did he have, Vic? Was Bush supposed to let them fail? What would Obama have done instead?

 

[nergee]

If most of the loans on FF books are assumed to be good, then why did they
have to be rescued?