Here we are talking of a 200 billion dollar bailout. My understanding - correct me if I'm am wrong - is that 100 for Freddie and 100 for Fannie.
BUT... the problem is not this 200 billion. The problem is that you can kiss goodbye to US lending procedures. Only God knows what will happen tommorrow when somebody will ask for money to buy a house.
The other problem is this. You have Mike (A) and John (B). So let's say that (A) loves hanging arround and (B) is a hard working middle class descent parent. Now (A) is unable to pay the loan. Well that's not a problem anymore. The US goverment has bail'emout everybody. So now (B) has to pay his own loan and taxes for (A). What do you think will happen next?
GREY LENSMAN User ID: 499458 9/8/2008 7:26 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
"It emerged today that Daniel Mudd, the departing head of Fannie Mae and Richard Syron, who is set to leave Freddie Mac, will share in a combined payoff of $23 million (£13 million) when they leave the mortgage groups.
Mr Mudd is expected to receive $9.3 million in pay and retirement benefits under the terms of his contract, while Mr Syron could walk away with $14.1 million."
[link to business.timesonline.co.uk]
Anonymous Coward User ID: 339051 9/8/2008 9:09 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
Then, last week, advisers from Morgan Stanley hired by the Treasury Department to scrutinize the companies came to a troubling conclusion: Freddie Mac’s capital position was worse than initially imagined, according to people briefed on those findings. The company had made decisions that, while not necessarily in violation of accounting rules, had the effect of overstating the firm’s capital resources and financial stability.
Indeed, one person briefed on the company’s finances said Freddie Mac had made accounting decisions that pushed losses into the future and postponed a capital shortfall until the fourth quarter of this year, which would not need to be disclosed until early 2009. Fannie Mae has used similar methods, but to a lesser degree, according to other people who have been briefed.
UNQUOTE
WHY DID IT TAKE MORGAN STANLEY TO REVEAL THIS. I HAD READ THE SELF SAME MONTHS AGO
WHERE HAS THE REGULATOR BEEN FOR THE PAST 30 YEARS. HUH WHY THE SUDDEN RUSH TO REGULATE.
SORRY FOLKS BUT IT IS OVER BIG TIME.
I KNOW FOLKS THAT WANTED TO BUY CALIFORNIAN PRIME MORTGAGE BONDS. 100 PROPERTIES ALL MILLION PLUS WITH TOP TOP RATE RATINGS. THEY WERE NEGOTIATING 20 CENTS IN THE DOLLAR BUT QUIT WHEN THEY REALISED BIGGER PICKINGS WERE TO BE MADE.
GL
Anonymous Coward User ID: 495109 9/8/2008 9:39 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
LSE's Computer Fix Is 'Taking Longer Than Expected' (Update3)
By Sarah Thompson and Ambereen Choudhury
Sept. 8 (Bloomberg) -- London Stock Exchange Group Plc, Europe's oldest independent exchange, said attempts to fix its biggest computer failure in more than eight years is ``taking longer than expected.''
Anonymous Coward User ID: 357529 9/8/2008 10:53 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
LSE's Computer Fix Is 'Taking Longer Than Expected' (Update3)
By Sarah Thompson and Ambereen Choudhury
Sept. 8 (Bloomberg) -- London Stock Exchange Group Plc, Europe's oldest independent exchange, said attempts to fix its biggest computer failure in more than eight years is ``taking longer than expected.''
the brits lost the Amiga 2000 manual.
Anonymous Coward User ID: 492467 9/8/2008 10:55 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
Let all the banks fail and we will have nobody to pay - your house will belong to you, not the bank.
Instead, we bail out the investors at further expense to the people.
Bend over again for another conservative screwing.
Maybe John McCain will change things and make these wealthy white people start taking responsibility for their behavior like only a wealthy white man with 9 houses can.
O
Anonymous Coward User ID: 417517 9/8/2008 11:17 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
Some thing fishy going on here the £ondon markets opened and went bonkers, looked like being a good day, not what they need when they are trying to engineer a crash.
Anonymous Coward User ID: 417517 9/8/2008 11:19 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
Mike Morgan's blog went furthur to describe what Paulson did! We have a theif trashing our economy and no one in Washington will stop him!@!
Barbarian Behind the Gates - Paulson lowered the moat and invited all of his Pals in. He has basically delayed addressing the problems for two years. Instead of a receivership and wipe-out, Paulson opted for a conservatorship and -give-away. He brought in two of boys from the financial industry that have facilitated the financial crisis, instead of going to the corporate world to find two honest men with clean hands.
Paulson left the doors open for two years. He didn't use the bazooka. He used the squirt gun, and he filled it with Kool-Aid. Instead of pointing the bazooka at the guys that created the mess, he has dumped the fix on the taxpayers with a blank check.
Bill Gross has been bragging about how much money he is going to make on this . . . at the expense of the taxpayers. Moreover, he has a blank check to write whatever he wants moving forward.
Here's the worst cut of this. If Fannie and Freddie are going to mark their losses to market, why don't the financial institutions have to do the same? Why don't the community and regional banks?
The end result is ugly for short term traders with short positions and PUTs on the financials. The markets will rally this morning as Paulson has lowered the gates to the moat. The financial institutions will run up stocks here, just as they have in Asia and Europe. These markets are up 3-5%, so look for a huge rally here and wipe outs for many shorts.
I want to believe the system will come to its senses and realize the housing problem is not fixed. In fact, it is getting worse, and nothing Paulson has done will have stabilize this market. Mortgages will continue to go toxic and commercials loans will be the next thing Paulson will need to bail out, followed by the FDIC, FHA and the Student Loan programs.
The smart move this weekend would have been to wipe out common and preferred, then to put a receivership in place . . . not a conservatorship.
I believe we are now one step closer to the Greater Depression. No - strike that. Two steps. One, because Paulson pulled it off. Two, because Washington let him do it. Essentially, Washington has just turned over the United States to a Band of Brothers . . . but not the Brothers we need. This Band of Brothers is a Band of Thieves.
WalkerTalker User ID: 489888 9/8/2008 11:28 AM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
The reports I have read and also posted here make it clear. This is a government recapitalization of a failed private lender, so for a few months we will be fooled to thinking its ok- thats what the jump in stocks is...people being fooled. But after a while we will be in a realization and out finacial doom will be evident. Uh-- about right sfter the elections!! And then the damage will keep unfurling for years!!
Anonymous Coward User ID: 499198 9/8/2008 12:11 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
You so called "conservatives" actually elected these evil traitors. McBush and his pinup whore will gut the last shreds of what was america. Thanks for your "intelligent moral" decisions traitors!
Anonymous Coward User ID: 331367 9/8/2008 12:21 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
That's good I have no money so couldn't give a shit, in fact seeing rich scum loose everything will fill me with joy.
Quoting: Anonymous Coward 417517
Or you could get off your lazy ass and earn some money. No one handed me a damn thing I worked my ASS off for what I have through 10 years of college and full time work; simultaneously. I think it sucks that you would get joy out of people's hardships simply because you are to stupid or lazy to make your own.
Anonymous Coward User ID: 183770 9/8/2008 1:09 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
That's good I have no money so couldn't give a shit, in fact seeing rich scum loose everything will fill me with joy.
Quoting: Anonymous Coward 417517
Wrong, Bucko. The 'rich scum' will become even richer and the rest of us will be paying for it through stealth inflation of the money supply - paying for bailouts for the rich. Even you own squat, you will still be paying.
Our Money Masters are partying on, you're just picking up the tab for it.
Anonymous Coward User ID: 183770 9/8/2008 1:12 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
Or you could get off your lazy ass and earn some money. No one handed me a damn thing I worked my ASS off for what I have through 10 years of college and full time work; simultaneously. I think it sucks that you would get joy out of people's hardships simply because you are to stupid or lazy to make your own.
Quoting: MrJoshua
Completely lost the plot, there, haven't you Skippy?
Better find the right place to put the boots, as opposed to your fellow man. You'll be smarter if you do.
Or you could get off your lazy ass and earn some money. No one handed me a damn thing I worked my ASS off for what I have through 10 years of college and full time work; simultaneously. I think it sucks that you would get joy out of people's hardships simply because you are to stupid or lazy to make your own.
Completely lost the plot, there, haven't you Skippy?
Better find the right place to put the boots, as opposed to your fellow man. You'll be smarter if you do.
Quoting: Anonymous Coward 183770
Nope anyone who gets pleasure from the pain of others is meaningless to me. Especially when it is just sour grapes.
Anonymous Coward User ID: 193501 9/8/2008 1:29 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
"Well, McCain campaign advisor Todd Harris said they didn't want Alaska Governor Sarah Palin to make a mistake early on, and that's exactly what happened today. Palin, commenting on the news that the Federal Goverment was going to take over the poortly performing loan organizations Freddie Mac and Fanny Mae, apparently did not know that the firms were privately owned and held. Palin said this, as written by the McClatchy Washington Bureau:
McCain's running mate, Alaska Gov. Sarah Palin, speaking in Colorado Springs, Colo., said Fannie and Freddie had "gotten too big and too expensive to the taxpayers." The companies, however, aren't taxpayer funded but operate as private companies. The takeover may result in a taxpayer bailout during reorganization.
It's this basic lack of knoweldge of Federal Government operation that both Obama / Biden supporters and GOP backers who questioned McCain's logic in selecting Palin are concerned with. Palin has no experience in talking about, let alone working to solve, Federal Government problems and policy matters on a regular basis that many wondered if McCain would have to engage in "on the campaign trail" training.
It appears that's the case.
Anonymous Coward User ID: 495109 9/8/2008 2:13 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
NEW YORK, Sept 8 (Reuters) - Fannie Mae and Freddie Mac were based on a troubled business model with conflicts of interest between private profits and public services, Treasury Secretary Henry Paulson told CBS television on Monday.
"This was a flawed business model," he said. "It never should have happened."
The mortgage giants had to be bailed out because of their importance to the mortgage market and the financial system, Paulson said.
The government's plan made sure that taxpayers were protected, but that stockholders would not be insulated from losses, Paulson said.
======================================
stockholders are set up to fall... chumps
Lastone User ID: 499679 9/8/2008 2:46 PM
Re: WTF !! WTF !! WTF !! WTF !!! NTY .- FANNIE/FREDDIE : THE MOST EXPENSIVE RESCUE EVER FINANCED BY TAXPAYERS !!!
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