Bailouts To Continue

[NaughtyGeek]

Link to NYTimes

WASHINGTON ? Alarmed by the growing financial stress at the nation?s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.

The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt.

Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee ? which could be staggering ? would be paid by taxpayers.

Why, oh freaking why does this come back on us? I didn't make a poor lending decision. I didn't borrow more than I could afford. So why in the name of all that is capitalist do I have to pay these freaking people's bills? How can this BS even be considered? Does it not fly in the face of our entire economic system? Where is the price for failure on the folks that got these companies into this position? Are they going to prison and having all their assets seized? When does it end?

 

[Aimster]

Where are we getting this money?

 

[Slew Foot]

Told you the taxpayers were going to be on the hook for it, but noooooooo one would listen to me.

Rumors are that Freddie and Fannie are leveraged 50-1, all it takes is a 2% loss to completely wipe them out.

 

[HeXploiT]

Originally posted by: Aimster
Where are we getting this money?

It's free.

 

[Dissipate]

Originally posted by: NaughtyGeek
Link to NYTimes

Why, oh freaking why does this come back on us? I didn't make a poor lending decision. I didn't borrow more than I could afford. So why in the name of all that is capitalist do I have to pay these freaking people's bills? How can this BS even be considered? Does it not fly in the face of our entire economic system? Where is the price for failure on the folks that got these companies into this position? Are they going to prison and having all their assets seized? When does it end?

You can say the same thing about almost anything government does. Personally, I only use roads, occasionally public transportation, and possibly police & fire (if I am having a really bad day). But the state takes over 25% of my income. It doesn't matter where it goes to me, because I'm not getting any of it back, SS, Medicare etc. will all be bust by the time I retire.

 

[RichardE]

Originally posted by: Aimster
Where are we getting this money?

We print it of course.

 

[Slew Foot]

Originally posted by: Aimster
Where are we getting this money?

Well it said TAXPAYER bailout, so either higher taxes or more debt. It doesnt come from the magical money making machine, it comes straight out of your pocket.

 

[babylon5]

How many billions is this one going to be?

Where is the outrage from Americans?

 

[HeXploiT]

Originally posted by: Slew Foot

Originally posted by: Aimster
Where are we getting this money?

Well it said TAXPAYER bailout, so either higher taxes or more debt. It doesnt come from the magical money making machine, it comes straight out of your pocket.

Are you sure about that?

 

[Slew Foot]

Originally posted by: babylon5
How many billions is this one going to be?

Where is the outrage from Americans?

Billions?


Today the companies hold or guarantee around $5.3 trillion in home-loan debt, though under a 1992 law they are required to hold only a fraction of what is mandated for commercial banks as a financial cushion against risk.

 

[BoomerD]

We had a rather significant bank bail out under the last BushCo administration; why should this one be any different?

http://rationalrevolution.net/...h_family_and_the_s.htm
(if you find that site...questionable...just google "neil Bush bailout" for much more informatino)

 

[mxyzptlk]

How does this help me? If I have one of those shitty ARM loans, does this mean that I get to just go scott free and keep my house? or is this "bailout" just for CEO's and investors??

 

[child of wonder]

Originally posted by: mxyzptlk
or is this "bailout" just for CEO's and investors??

This.

Politicians jerk off execs, execs jerk off politicians... one big circle jerk. That's how the world works. The rich and powerful take care of each other to make sure they stay that way.

 

[RightIsWrong]

Originally posted by: child of wonder

Originally posted by: mxyzptlk
or is this "bailout" just for CEO's and investors??

This.

Politicians jerk off execs, execs jerk off politicians... one big circle jerk. That's how the world works. The rich and powerful take care of each other to make sure they stay that way.

Fresh off of the wire..

WASHINGTON (Dow Jones)--The White House on Friday repeated its call for Congress to send President George W. Bush housing legislation he can sign but declined to answer questions on a potential bailout of Fannie Mae and Freddie Mac. White House spokeswoman Dana Perino said Treasury Secretary Henry Paulson will make a statement on government-sponsored enterprises Friday morning. She said she didn't know what Paulson would say, and deferred questions on the GSE's capital to Treasury. The statement will come in written form, rather than a public appearance, Perino said.[/q[

 

[Engineer]

Originally posted by: child of wonder

Originally posted by: mxyzptlk
or is this "bailout" just for CEO's and investors??

This.

Politicians jerk off execs, execs jerk off politicians... one big circle jerk. That's how the world works. The rich and powerful take care of each other to make sure they stay that way.

From the looks of this. the government is looking at taking over Fannie/Freddie in which case the stock would be WORTHLESS. Of course, the government would then be responsible for trillions of debt in case of default by those having a mortgage.

 

[RightIsWrong]

Latest from Paulson on this:

Secretary Henry M. Paulson Jr. made the following comment today on news stories about "contingency planning" at Treasury:"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission."We appreciate Congress' important efforts to complete legislation that will help promote confidence in these companies. We are maintaining a dialogue with regulators and with the companies. OFHEO will continue to work with the companies as they take the steps necessary to allow them to continue to perform their important public mission."

 

[child of wonder]

"Important public mission?" LMFAO

In other words:

"We recognize that the CEOs and high level executives may have to start using $50's to wipe their asses instead of $100's. Since we want their campaign contributions and perks once we're out of office, we felt it best to ensure those kind hearted souls are taken care of during this time of record setting debt and impending recession."

 

[lupi]

I heard what sounded like an economist talking about this on an hourly news update, and he said something that sounded like these bailouts were being considered because in their current condition it would take "chump change" to buy them out.

Why the hell wouldn't you then just allow someone to buy them if the current leadership fubared it so badly.

 

[smack Down]

Originally posted by: BoomerD
We had a rather significant bank bail out under the last BushCo administration; why should this one be any different?

http://rationalrevolution.net/...h_family_and_the_s.htm
(if you find that site...questionable...just google "neil Bush bailout" for much more informatino)

They already bailed out their buddies at bear.

 

[Golgatha]

They are 95% institutionally owned. I say let both fall flat on their face and declare bankruptcy.

Also, if we bail them out, 1.3 trillion taxpayer dollars of the 5 trillion are going to get shipped overseas to cover mortgage bonds. The number one buyer of these bonds is China. Second up is Japan. As a responsible homebuyer who pays his mortgage every month, I am quite furious at this situation. Not only are home loans more expensive for me, but my investments all are severely suffering because of this fucking mess.

 

[HeXploiT]

Originally posted by: Engineer

Originally posted by: child of wonder

Originally posted by: mxyzptlk
or is this "bailout" just for CEO's and investors??

This.

Politicians jerk off execs, execs jerk off politicians... one big circle jerk. That's how the world works. The rich and powerful take care of each other to make sure they stay that way.

From the looks of this. the government is looking at taking over Fannie/Freddie in which case the stock would be WORTHLESS. Of course, the government would then be responsible for trillions of debt in case of default by those having a mortgage.

I've never thought about that before!:Q
What happens to the stock if the government takes them over?
Interesting.

 

[Golgatha]

Originally posted by: Perry404

Originally posted by: Engineer

Originally posted by: child of wonder

Originally posted by: mxyzptlk
or is this "bailout" just for CEO's and investors??

This.

Politicians jerk off execs, execs jerk off politicians... one big circle jerk. That's how the world works. The rich and powerful take care of each other to make sure they stay that way.

From the looks of this. the government is looking at taking over Fannie/Freddie in which case the stock would be WORTHLESS. Of course, the government would then be responsible for trillions of debt in case of default by those having a mortgage.

I've never thought about that before!:Q
What happens to the stock if the government takes them over?
Interesting.

It will become a government ran conservatorship and the stock will become a penny stock.

 

[ericlp]

Originally posted by: mxyzptlk
How does this help me? If I have one of those shitty ARM loans, does this mean that I get to just go scott free and keep my house? or is this "bailout" just for CEO's and investors??

Haven't you figured it out yet? If your the little guy then they don't care about you.


The little guy always gets squeezed (MORE MORE MORE!!!) ... How much can we get? If your rich then no problem your ok since well, your in the big club....

Originally posted by: Perry404

Originally posted by: Engineer

Originally posted by: child of wonder

Originally posted by: mxyzptlk
or is this "bailout" just for CEO's and investors??

This.

Politicians jerk off execs, execs jerk off politicians... one big circle jerk. That's how the world works. The rich and powerful take care of each other to make sure they stay that way.

From the looks of this. the government is looking at taking over Fannie/Freddie in which case the stock would be WORTHLESS. Of course, the government would then be responsible for trillions of debt in case of default by those having a mortgage.

I've never thought about that before!:Q
What happens to the stock if the government takes them over?
Interesting.

What happened to the stock of B&S when the feds stepped in? Basically the stock becomes worthless and again people that invested get screwed but ...

Don't worry, LK will come in and tell you how it's gonna work out and everything smells like roses!



Just Nod in agreement! There that wasn't so hard? Now take a DEEP breath ... Ready? The feds are gonna butt f**k the american people again... Enjoying it yet?

 

[HeXploiT]

Yesterday Ron Paul questioned Treasury secretary Henry Paulson and Federal reserve chairmen Ben Bernanke. In his questioning Paul mentioned that the fed has printed $4 Trillion dollars out of thin air in the past three years and neither Bernanke nor Paulson denied it.
If this is not a good enough confirmation for those of you who don't believe there is a magic money machine then you are fooling yourselves and you will never be convinced.
C-Span Video Congressman Paul speaks at 1:26.

EDIT: I don't know why but I can't get the link to load.
If you copy and paste this into your browser it should work.
rtsp://video1.c-span.org/project/economy/econ071008_financial.rm

 

[RightIsWrong]

Originally posted by: lupi
I heard what sounded like an economist talking about this on an hourly news update, and he said something that sounded like these bailouts were being considered because in their current condition it would take "chump change" to buy them out.

Why the hell wouldn't you then just allow someone to buy them if the current leadership fubared it so badly.

Because he is lying his ass off and just trying to reassure the listening audience to continue to dump your money into a vast pit that is financials to keep the market afloat long enough so that the big players can take it from you.