AMERICAblog: U.S. Plans to Seize Fannie and Freddie
tbhull
· 1 year ago
In true republican fashion good mother government comes to therescue with an unlimited supply of taxpayer dollars to rescue debt holders and preferred shareholders. Basically this a wheel barrow full of gubment cheese for preferred shareholders and debt holders. Common shareholders may get a few shreds of cheese, but do not count on it..
As a taxpayer I am about as proud paying for the box of government cheese for a fat welfare momma residing at Cabrini Green as I am for DC using taxpayer dollar to ensure payment for Fannie Mae and Freddie Mac debt holders and preferred holders. These welfare mommas should be wiped out.
Wild_Weasel
· 1 year ago
It was only a matter of time.
Thanks to NeoCon theory of NO REGULATION, we are in a global mess that threatens to be the tipping point for the downfall of America.
unrepentant_expat
· 1 year ago
Considering the damage done to the economy, they ought to take the reins of ExxonMobil while they're at it!
ADLEED
· 1 year ago
All this sounds good but who was responsible for the mortgage meltdown. Yep, Fannie and Freddie have their problems, but they are not wall street investment bankers who just happen to invest in a lot of questionable and sub prime home mortgages in recent years.
donotmakemecomedownthere
· 1 year ago
"The plan, effectively (is) a government bailout..."
This sounds like WAY more than a bailout. It sounds like BushCo. is assuming the exhorbatant loans issued on American homes already facing foreclosure.
Their special interests are now taking over the landscape (real estate) of America. For drilling, drilling, drilling and such.
tbhull
· 1 year ago
The government just became the largest homeowner in the nation.
sukabi1
· 1 year ago
Here's an article from the Guardian from July, when the emergency meeting was called to "shore up" freddie and fannie...
The US government moved last night to shore up the finances of the beleaguered lenders Fannie Mae and Freddie Mac in a desperate bid to prevent them defaulting on billions of dollars of mortgage debts.
Hank Paulson, the treasury secretary, called on Congress to support a plan that would allow the government to buy shares in the lenders during the next two years and underwrite their ballooning debts.
As part of the plan, the administration will call on Congress to raise the limit on government borrowing. It will also ask for powers for the Federal Reserve to insist that the lenders - which between them lend or guarantee more than $5 trillion of mortgages - hold a larger capital cushion to reassure nervous markets.
The debts of both institutions dwarf those of rivals. Fannie Mae has total debts of about $800bn (£400bn), while Freddie has about $740bn. They account for more than 50% of the US mortgage market.
Fannie Mae was due today to carry out a pre-planned sale of $3bn of short-term debt. US treasury officials were telephoning Wall Street banks at the weekend to ensure that they still planned to bid for the securities, as they would in more normal times. It is understood that treasury officials were disappointed by the reaction and moved quickly to bring forward government rescue plans
I guess that "rescue plan" didn't work out so well after all... Is this another one of those "no one could have predicted" moments?
Busboy
· 1 year ago
Drill Baby, Drill! Can't wait for the bumper sticker!
unrepentant_expat
· 1 year ago
Gonna slap it on yer backside?
Busboy
· 1 year ago
Gonna put it on your bumper or windshield. Why would I want to be a target?
Busboy
· 1 year ago
Freddie and Fannie are protecting the "little people" from foreclosure. Do you really want those people out in the street. WELL, yes, I guess you do; if you want "regime change" in the USA...
sukabi1
· 1 year ago
It is not possible to calculate the cost of any government bailout, but the huge potential liabilities of the companies could cost taxpayers tens of billions of dollars and make any rescue among the largest in United States history.
Ummm, not possible to calculate... seems that's the kind of "thinking" that's gotten us into this mess.... and from the Guardian article's figures that I linked to below from this summer.... Fannie Mae has total debts of $800 billion and Freddie Mac has debts in excess of $740 billion.... this bailout will cost the US taxpayer a bit more than 10s of billions of dollars, try a couple of trillion dollars...
mikeston
· 1 year ago
Things Democrats could never do:
1) It took Nixon to start the relationship with China. Democrats would have been called weak for doing the same. 2) Nationalize the financial sector of the American economy. That took Bush. Democrats would be pummeled for moving the US economy toward socialism. Any guesses on which sector will be nationalized next? My bet is the auto industry.
unrepentant_expat
· 1 year ago
And your point is?
donotmakemecomedownthere
· 1 year ago
Have you even tried this century?
gate82
· 1 year ago
John, What this ultimatley means is more $'s created out of thin air to paper over a problem that has been in the works for quite awhile. Yes this is the sad legacy of the Bush "Ownership Society" but others like Barney Frank didn't help either as they helped in creating a situation where the taxpayer is on the hook while others like franklin Raines and other washington insiders walk away with millions. I'd like to blame this all on Bush but infortunately their is blame to go around for both parties
tbhull
· 1 year ago
The feds have implicitly guaranteed mortgages issued by Fannie Mae and Freddie Mac for years, now this has become explicit. The fed had to guarantee this debt or banks holding budled versions of it would fail and the government would be on the hook for their depositors.
The difficulty with the bailout is that it appears that the government are protecting to topo tier equity and debt holders that invested in these two publicly traded companoies. These investors should and their holding of debt and/or preferred shares must be disclosed so that the taxpayers know whose investments they are paying to save.
This republican bailout is clear socialism and close to facism.
tbhull
· 1 year ago
reply retry:
The feds have implicitly guaranteed mortgages issued by Fannie Mae and Freddie Mac for years, now this has become explicit. The fed had to guarantee this debt or banks holding budled versions of it would fail and the government would be on the hook for their depositors.
The difficulty with the bailout is that it appears that the feds are protecting top tier equity and debt holders that invested in these two publicly traded companoies. These investors should be disclosed as should the current value of their debt and/or preferred shares so that the taxpayers know whose investments they are paying to save.
This republican bailout is clear socialism and close to facism.
ZennButtKicker (tlhwraith)
· 1 year ago
wait, weren;t we told everything was A-OK? The economy is fundamentally sound right? Government regulation of the mortgage and securities industries is wrong right?
What a load of shit!
The GOP can't be allowed to wholesale rip this country apart, at this point even the millionaires are starting to smell the stench.
unrepentant_expat
· 1 year ago
OrThe GOP can't be allowed to wholesale rip this country"off
blackwolf
· 1 year ago
You'd think we'd wake up. No oversight--courtesy of the Bush Administration
Busboy
· 1 year ago
As of today? I think the bailout is ancient history. Time to relax with a cold one and watch Seinfeld re-runs......
unrepentant_expat
· 1 year ago
I can't afford a cold one and my cable has been cut... but wait my gas has been cut too, so this winter I'll have a cold one after all.
Busboy
· 1 year ago
For some reason; my radar is telling me that you're self sufficient and not a victim in any sense of the way......
unrepentant_expat
· 1 year ago
Yah, I guess. If you've got lemons, ferment them.
WindmillChasr
· 1 year ago
Hey look, Friday afternoon! Time to release some bad news!
nybri
· 1 year ago
Not so much for bad news....it's to protect the markets. If this was release mid-week...the markets would collapse totally.
The government must reveals the identity of FNM/FRE preferred shareholders/debtholders and the value of their investments being protected so that taxpayers know the names of their masters.
tbhull
· 1 year ago
reveal
AdmNaismith
· 1 year ago
They should be turned into govt holdings so that when they make money, the US govt (us) get's the profits. The whole 'being on the hook for it's failures while seeing none of the profits' is bullshit.
Guess economics doesn't run in the McCain family.... and you'd think after that whole Keating thing the McCains would have studied up a bit....
mf_roe
· 1 year ago
Why do you think Cindy wanted that prenup?, even she knew better than to let a Repug touch her money.
donotmakemecomedownthere
· 1 year ago
The apple doesn't fall far from the snake in the tree.
mf_roe
· 1 year ago
If you have to ask who is being protected here you have not been paying attention, and I promise you that it isn't you who will benefit.
Busboy
· 1 year ago
mf? another miserable victim? Will they seize your computer?
nybri
· 1 year ago
No need to wait for Chris. This is fucking huge.
Bubbles
· 1 year ago
Bush is "Nationalizing" these companies? Isn't that socialism?
I thought socialism was always bad?
That's what the Republicans always taught me.
tbhull
· 1 year ago
A real chance exists that China and/or Russi or sovereign funds hold a substantial portion of the preferred shares and debt, both of which securities are being protected by the bailout funded by US taxpayer dollars.
Wild_Weasel
· 1 year ago
WHEN will Americans wake up?
The Bush family is a bunch of CROOKS.
Neil Bush was part of the Savings and Loan disaster that cost U.S. taxpayers mega-billions to fix.
Neil Bush was on the board of SILVERADO bank, which alone cost the taxpayers over one billion dollars.
For his criminal part in that debacle, Neil Bush paid a paltry $50,000 fine.
GEORGE W. BUSH has topped his brother Neil.
The failure to regulate Wall Street, the real estate industry, the Wall Street rating agencies, the mortgage banking industry, the real estate broker industry, and the real estate appraiser industry, have all contributed to the largest financial failure in U.S. history.
This financial meltdown will take a year, perhaps a decade to stabilze.
Thanks BUSH FAMILY for bringing down America.
tofubo
· 1 year ago
wasn't it like, two weeks ago, that fannie and freddie were being charged with undrereporting their income by like a couple of billion ??
my, how time flies when you're totally fucking up the fundamentals of the economy
ivyfree
· 1 year ago
Doesn't it make you wonder who they'll pick to run Fannie and Freddie? I'm sure whoever they'll pick will do a heckuva job.
Andon
· 1 year ago
Nationalization of the two big mortgage institutions (that used to be government agencies) with the private share holders left with nothing at all is a big desperation move. There must be signs of the big banks starting to crack as well. The twins should never have been privatized in the first place. When all this gasified debt is fully shaken out in 18-24 months time a lot of American assets are going to be in government or foreign hands because of the need to replenish capital. The gulf arabs are buying up the solid assets as we speak. The Carlyle Group facilitates and takes a fee as comprador.
All Comments
As a taxpayer I am about as proud paying for the box of government cheese for a fat welfare momma residing at Cabrini Green as I am for DC using taxpayer dollar to ensure payment for Fannie Mae and Freddie Mac debt holders and preferred holders. These welfare mommas should be wiped out.
Thanks to NeoCon theory of NO REGULATION, we are in a global mess that threatens to be the tipping point for the downfall of America.
This sounds like WAY more than a bailout. It sounds like BushCo. is assuming the exhorbatant loans issued on American homes already facing foreclosure.
Their special interests are now taking over the landscape (real estate) of America. For drilling, drilling, drilling and such.
The US government moved last night to shore up the finances of the beleaguered lenders Fannie Mae and Freddie Mac in a desperate bid to prevent them defaulting on billions of dollars of mortgage debts.
Hank Paulson, the treasury secretary, called on Congress to support a plan that would allow the government to buy shares in the lenders during the next two years and underwrite their ballooning debts.
As part of the plan, the administration will call on Congress to raise the limit on government borrowing. It will also ask for powers for the Federal Reserve to insist that the lenders - which between them lend or guarantee more than $5 trillion of mortgages - hold a larger capital cushion to reassure nervous markets.
The debts of both institutions dwarf those of rivals. Fannie Mae has total debts of about $800bn (£400bn), while Freddie has about $740bn. They account for more than 50% of the US mortgage market.
Fannie Mae was due today to carry out a pre-planned sale of $3bn of short-term debt. US treasury officials were telephoning Wall Street banks at the weekend to ensure that they still planned to bid for the securities, as they would in more normal times. It is understood that treasury officials were disappointed by the reaction and moved quickly to bring forward government rescue plans
I guess that "rescue plan" didn't work out so well after all... Is this another one of those "no one could have predicted" moments?
Ummm, not possible to calculate... seems that's the kind of "thinking" that's gotten us into this mess.... and from the Guardian article's figures that I linked to below from this summer.... Fannie Mae has total debts of $800 billion and Freddie Mac has debts in excess of $740 billion.... this bailout will cost the US taxpayer a bit more than 10s of billions of dollars, try a couple of trillion dollars...
1) It took Nixon to start the relationship with China. Democrats would have been called weak for doing the same.
2) Nationalize the financial sector of the American economy. That took Bush. Democrats would be pummeled for moving the US economy toward socialism. Any guesses on which sector will be nationalized next? My bet is the auto industry.
What this ultimatley means is more $'s created out of thin air to paper over a problem that has been in the works for quite awhile. Yes this is the sad legacy of the Bush "Ownership Society" but others like Barney Frank didn't help either as they helped in creating a situation where the taxpayer is on the hook while others like franklin Raines and other washington insiders walk away with millions. I'd like to blame this all on Bush but infortunately their is blame to go around for both parties
The difficulty with the bailout is that it appears that the government are protecting to topo tier equity and debt holders that invested in these two publicly traded companoies. These investors should and their holding of debt and/or preferred shares must be disclosed so that the taxpayers know whose investments they are paying to save.
This republican bailout is clear socialism and close to facism.
The feds have implicitly guaranteed mortgages issued by Fannie Mae and Freddie Mac for years, now this has become explicit. The fed had to guarantee this debt or banks holding budled versions of it would fail and the government would be on the hook for their depositors.
The difficulty with the bailout is that it appears that the feds are protecting top tier equity and debt holders that invested in these two publicly traded companoies. These investors should be disclosed as should the current value of their debt and/or preferred shares so that the taxpayers know whose investments they are paying to save.
This republican bailout is clear socialism and close to facism.
What a load of shit!
The GOP can't be allowed to wholesale rip this country apart, at this point even the millionaires are starting to smell the stench.
Time to relax with a cold one and watch Seinfeld re-runs......
Guess economics doesn't run in the McCain family.... and you'd think after that whole Keating thing the McCains would have studied up a bit....
I thought socialism was always bad?
That's what the Republicans always taught me.
The Bush family is a bunch of CROOKS.
Neil Bush was part of the Savings and Loan disaster that cost U.S. taxpayers mega-billions to fix.
Neil Bush was on the board of SILVERADO bank, which alone cost the taxpayers over one billion dollars.
For his criminal part in that debacle, Neil Bush paid a paltry $50,000 fine.
GEORGE W. BUSH has topped his brother Neil.
The failure to regulate Wall Street, the real estate industry, the Wall Street rating agencies, the mortgage banking industry, the real estate broker industry, and the real estate appraiser industry, have all contributed to the largest financial failure in U.S. history.
This financial meltdown will take a year, perhaps a decade to stabilze.
Thanks BUSH FAMILY for bringing down America.
my, how time flies when you're totally fucking up the fundamentals of the economy