Fannie's new watchdog: All bark?

Fannie's new watchdog: All bark?

money.cnn.com

Backers of the housing rescue bill have been trying to reassure skeptics in Congress by pointing to the bill's creation of a new world-class regulator for Fannie Mae and Freddie Mac. But opponents doubt any watchdog will have enough teeth to keep the well-connected mortgage guarantors in line.

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With GWB signing a $300 billion bailout plan for Fannie and Freddie, is this signaling a further decline in the already devastated mortgage industry?

Fannie and Freddie - which together hold $1.4 trillion of mortgages and guarantee some $3.5 trillion in mortgage-backed securities - say the companies must, at the very least, drastically shrink their mortgage holdings to reduce the risk of future taxpayer bailouts.

Will we the taxpayer for ever be strapped with paying for their mistakes?

This is not a doom and gloom thread, what are the options and possible out comes from such a bailout? Chime in!

money.cnn.com
(visit the link for the full news article)

reply to post by pstrron



My biggest problem with these bailouts is when will it stop? When is someone going to say nope, sorry, we have striped every last penny we can from the hard working americans & we just can't help your company.

IMO, it won't stop, more companies are going to "need" this help & eventually, the economy is going to be adversely affected regardless....... So I guess we are in a no win situation.

Surely this isnt helping inflation,

To the US government its simply a digital number, put a few zero's into someone's account, no problem.

But it means the US $ becomes more and more worthless, because its so widley available. if its rare,its expensive if its as common as dogs balls, its worthless.

The banks got themselves into trouble via greed, and because the THE US government pushed them into privatley assisting in funding the Iraq war.

Now, the banks are rotten, the US economy is faltering... the more they bail out, the more accelerated the economic downturn will happen.

its begining to become inevitable.

I believe it was last week when they were forecasting that as many as 150 banks might go under in the next 18 months. Could this in short be due to the situation that Fannie and Freddie are in? Or as one might say, salvaging Fannie and Freddie at the expense of allowing the 150 to fail. Thus leaving the taxpayer high and dry without a penny to spare.