Report: Government may soon back Fannie Mae, Freddie Mac

Report: Government may soon back Fannie Mae, Freddie Mac

www.usatoday.com

The government may soon step in to provide a financial boost to mortgage finance companies Fannie Mae and Freddie Mac, The Wall Street Journal reported late Friday.

The paper said an announcement "could come as soon as this weekend" but said exact details of the plan couldn't be learned. It said the plan would include executive changes at both companies.

(visit the link for the full news article)

I personally have no comments on this, but I figured other people may, so here it is.

www.usatoday.com
(visit the link for the full news article)

reply to post by MatrixBaller04


Not that I neccesarily object, but this wil be just another case of socialism for the elite and capitalism (foreclosures) for the middle and lower classes. How about a little help for those losing their homes?

It seems that Fanny and Freddy are not the only ones lining up for a bail now the auto industry is also asking for billions.

Automakers seek $50 billion in low-interest loans to convert plants from trucks to fuel efficient cars; presidential election could help their chances.

money.cnn.com...

reply to post by disgustedbyhumanity


In a way, this will actually help distressed mortgage holders. Right now they can't refinance into more favorable loans because the banks can't resell new mortgages easily, hence the 'credit crunch'. Fannie and Freddie's purpose is to buy up mortgages from the banks, so if they have more capital to do that the banks can start writing new home loans. Both companies actually have adequate capital to keep doing business but because of the loss of investor confidence, they have to pay much higher returns to entice buyers to invest in their bonds. If they're federally funded, the taxpayers will probably make a profit in the long term, and it could kick start the housing market and a big part of the economy in the short term.

It's small investors (like me) who will be wiped out by this, their stock value (already down about 85% this year) will be worthless on Monday.

What does this tell the other private business owners in America? It says hey, you can only get bailed out if your owned by the elite, they own the money and only they can get our help.

So you think about it for a moment. Even though the government is taking it over, it is still under the control of the elite, just what they want. This way it`s more lawful to take your money away from you in taxes to pay for their mistake.

They have it all figured out, don`t they? You better grab ahold of your backsides people, their coming for us, and were going to pay for it big time. Would they do this for the small private business owners? In one word, no.





[edit on 6-9-2008 by FiatLux]

It is not the responsibility of the government to BAIL OUT anyone. Especially, when that bail out will automatically push us over our debt ceiling limit, and cause us to have to raise the debt ceiling yet again. This current debt ceiling is 9.5 Trillion not including the off sheet categories that the government is on the hook for,

www.thestreet.com...

Looking at this scenario, that would have to raise the debt ceiling from 9.5 to 12 trillion, additionally, the government would go from being on the hook from 55 trillion to 67 trillion. Thats an 18% increase in total liabilities. This would collate into another depreciation of the dollar by the same token amount, if not more just based on the fact that we don't have the assets to support the debt that we have.

I am against any and all bail outs. Corporations shouldn't be bailed out. Anti-monopoly laws should be enforced, and these corporations should be allowed to sink, assets seized, and used to pay off its debts. The government should step in only to do this, and restructure the mortgages to reduce interest rates so that the buyers of the houses can actually afford the houses that they live in and stop the foreclosure process. My opinion is if any corporation would significantly damage the U.S. economy, then they are a monopoly and they violated those laws and should be broken up. NO COMPANY should be responsible for the destruction of the economy. This is just piss poor management on the governments side which was charged with monitoring these things in the interest of the American people. If its not poor management then its corruption at the highest level, either way, the people charged with overlooking this should either be FIRED, or SHOT for treason.

As far as the 2 candidates go, both are just more of the same. McCain is 4 more years of Bush, and Obama is 4 more years of Bush lite. Neither got to the position that they are in by being willing to actually put serious change in place. When the election comes write in "None of the Above" Lets see that win a majority. Keep doing that till we get people in there that are interested in the American people's interest.

I understand the point of view that not bailing out these corps with destroy our economy, the point is, bailing them out will destroy it regardless. There is no good solution to this situation, the Bail out will only created a delayed destruction, while not bailing them out brings the immediate. What does this mean, we are throwing more cash at a problem either way that has no good solution. Bailing them out though has long term repricussions to the federal government, as USUALLY, a fascist state usually first seeks to control the banks before controlling the other aspects of society. The banks control the businesses, the businesses control the peoples money. When you control the people's monies, you control there livelihoods. Control that, you control the population.

No, I disagree with this bail out and all others. Corporations were the death of the small business owner, which was the creator of the American economy. I have often thought about writing about the new monarchy here in the U.S., as currently Our form of government is nothing more the Corporate Feudilism, where the crown is bought, paid, and maintained, by corporations seeking to carve us up, and enslave us.

Just my 2 cents,

Camain

reply to post by camain


I agree Camain, and to further this, let us remind ourselves of a couple items.

Who has been commissioned with overseeing the financial technicalities and (for lack of a better term if you will) consultants to the entire process? Morgan Stanley! This makes PERFECT sense doesn't it? leaving the fox to watch over the henhouse?

Also, WE the US public are on the hook to PAY FOR these failed policy chiefs to end their careers in a cushy "i never need to work again" buyout?!?!

I find it incomprehensible that we are just sitting by idle and letting it happen. The taxpayers money is OUR money, it belongs to the Republic of the United States' people, and ULTIMATELY WE have the final say on where it goes! Have we forgotten that? Apparently.


AB1

Originally posted by mythatsabigprobe

Both companies actually have adequate capital to keep doing business but because of the loss of investor confidence, they have to pay much higher returns to entice buyers to invest in their bonds.

Right, so further deteriorate all confidence whatsoever by having the fed's step in, bail them out, not only have the investors lose their investments, BUT all the while making US pay for their 'oops'.

Originally posted by mythatsabigprobe
If they're federally funded, the taxpayers will probably make a profit in the long term, and it could kick start the housing market and a big part of the economy in the short term.

How do you figure that? The taxpayers who still DO have jobs and are keeping current, are the one's who will be footing the bill? What and where exactly do you see their ROI?

Originally posted by mythatsabigprobe
It's small investors (like me) who will be wiped out by this, their stock value (already down about 85% this year) will be worthless on Monday.

Well, to be perfectly frank with you, if you're going to be "wiped out by this" then you should sincerely stop investing as a source of income. The reason that there IS loss of confidence is simply because the fed had to open their big mouths. However, once they did, the investors who kept their ear to the ground knew damn well the only way out was to start dumping fannie and freddie long before an 85% yearlong failure.

AB1

Think about what you said, the money belongs to us, the tax payer. No it doesn`t, it does belong to the Fed. The only way it would belong to the people or the republic, would be if it was run by the government of the people. The Fed is privately owned, and the money belongs to them, they print it, and pass it out, just plain old paper with no backing to it. As far as I`m concerned, they can keep their worthless paper, and let us start a new banking system where gold backs the new paper bills and coins.

Wow, this actually suprises me big time. Like, something I never knew. I thought that Fannie Mae made like cookies and chocolates and stuff, not mortgages.

This is going to make "our" dollar almost worthless now right? Which in turn will jack the prices up everywhere for joe blow?

Edit: In reply to Finn 1916


OT: LOL, yes, they invested big time in the people. I love the new chocolate flavored 1 dollar bills myself, and the nickel, dime and quarter sized cookies.

[edit on 6-9-2008 by FiatLux]

Originally posted by scarrr
This is going to make "our" dollar almost worthless now right? Which in turn will jack the prices up everywhere for joe blow?

The dollar has been worthless for some time now, when they stopped backing it with gold and silver. It`s just a lot of worthless paper floating around right now. Nothing like being handed worthless paper for all the labor people do. But, hey, it payes the bills and puts food on the table, right?

reply to post by MatrixBaller04


It seems that ATS members seem to be a little misinformed as to what is truely going on behind the scenes here and the motives of it's players. I've been involved in the finance industry for quite some time now and wish to share a little unknown facts with those of you who wish to know what is really going on behind the scenes.

Economics seems to be a weak topic on ATS for some reason. Though this is expected since this was by design by those who have designed this scenario of economic terrorism to achieve another step toward their so-called NWO.

The true NWO have been and will always be the international banking cartel namely the (Rothschilds, Morgans, Rockefellers) of whom control and privately own the Federal Reserve etc.

The article link below makes it sound like the US Treasury is taking over Freddie Mac and Fannie Mae though the truth is they're bankrupt and have been for over 60 years. The US Treasury is run by the Federal Reserve of which is privately owned by the international banking cartel of whom have a keen interest in 'controlling' half of the US mortgage/real estate market with one bold move of which they organized/financially engineered in the first place. I have spoken at length here on ATS about the effects of the international banking cartel (Federal Reserve) on the US financial system as well as the worlds central banks of which they operate and own.

Another point for discussion; the 'consultant' for this massive takeover of US assets is none other than the Morgan's. They are one of the partners of the International banking cartel I mentioned above. They are one of the founding members of this international banking cartel of whom's plan all along was to crash the US economy by issuing currency (debt obligations backed by nothing tangible such as gold/silver) creating hyperinflation and hyperinflated Mortgage backed securities of which many 'other' investments were supposedly backed (though at inflated real estate values by design) were designed to fail and thus causing a subsequent crash in the housing market and stock markets.

Structure:
The IMF, The World Bank are both collection agencies for the International Bank of International Settlements of which all of these entities are majority owned by the only Trillionare banking family....the Rothschilds....of whom's financial empire comprises all the worlds central banks, most of the worlds gold of which they directly own and are stored in their central banks of G8 nations. They print the money, they buy the political parties, they tell politicians what choice they have...they 'edit' all outgoing media press releases (except some internet in some countries) so as to ensure the public at large remain either misinformed or disinformed as to their agenda since the 1780's when it all began in the City of London of where the head of the Rothschilds reside today in that 'sovereign' city of which has been its own jurisdiction since it was created.


This enormous hostile takeover of half the US's mortgage industry is nothing more than a repeat of the Depression of 1929 though on a much larger scale. The international bankers are once again acquiring ownership and control over U.S assets (half the US mortgage industry 5 trillion in loans) in one giant swoop for PENNIES ON THE DOLLAR of 'real value'. This 'investment' once realized will prove to be another takeover of US Assets by a private self serving entity (Fed. Reserve) of which will now be enslaving mortgagees for most likely the rest of their lives through the collection of interest payments on their terms. You don't pay....they lien their way to claim that which they knew you couldn't afford in the first place. They win either way in the end.
IT WAS BY DESIGN FOR THE FEDERAL RESERVE TO FLOOD THE MARKET WITH EASY CREDIT VIA EXTREMELY LOW FEDERAL FUNDS RATE (1-2%) TO ITS MEMBER BANKS OF WHOM ISSUE AND CREATE MORE MONEY THROUGH OFFERING THE LOANS/MORTGAGES TO THE END USERS (citizens) THUS INFLATING THE HOUSING MARKET WITH EASY LOANS. THESE EASY LOANS WERE DESIGNED WITH FAILURE IN MIND. A HOUSE WITH AN INFLATED VALUE AT CONCEPTION OF THE LOAN/MORTGAGE IS HIGHLY LIKELY TO BE DEFAULTED ON AS THE VALUE OF THE HOUSE BECOMES WORTH MUCH LESS THAN THE OUTSTANDING LOAN/MORTGAGE HELD AGAINST IT BY THE BANKSTERS. THE FELLOW LEFT HOLDING THE BAG SUBSEQUENTLY DEFAULTS ON THE MORTGAGE AS THEY ARE CURRENTLY DOING BY THE MASSES. Who in their right mind would hold onto a house/property of which is all the sudden worth much less than the outstanding mortgage/loan placed against it?

When these banksters inject their fundage into half of the US mortgage industry and thereby increasing liquidity and strengthening the mortgage 'industry's' capital base, they realize a huge return on investment from day one while establishing a perpetual interest revenue stream in perpetude.

Amazing the public is STILL unaware of what is transpiring here.

The media of which is owned and controlled by these banksters of whom are majority share owners of these institutions are paid well to keep the public in the dark. These international bankers hide their identities by creating shell corporations in offshore banking countries to mask their true identies as well as ensure privacy of ownership disclosure.
You will discover thru research that these same bankers own the worlds gold and gold producers as well as refiners. They also own and control the world's diamond industry De'Beers as well.
You will discover that the world's currencies, gold and other PGM (platinum group metals) diamonds, virtually all of the worlds commodities including oil and nat. gas, defense industry stocks, intelligence software companies (of which spy on our political reps. emails/interdepartmental and external communications) , financial software co's of which record most of the worlds financial transactions, and don't forget the real estate industry are directly owned or majority owned (thereby controlling shareholders) by this international banking cartel.

The first step is to dissolve the Federal Reserve system of which is an illegal and clear violation of the US Constitution and a threat to our collective sovereignty as a nation.

The video below explains this topic in detail.
Too much to say here though I've spoken quite a bit of this topic in previous posts here on ATS.
The truth is out there for those who seek it. Now is the time to PAY ATTENTION!!
Pay close attention to the video below and you may be counted as one of the 1000th of 1% of the population that has a clue of what has transpired in the world financial system historically as well as present and ....if up to 'them' the future of a one world currency of which these international bankers will truely run the world's financial system and thus control every political and economic decision made among any nation in the world at any time.
It is a clear violation of the US Constitution for any foreign, private entity (FED RESERVE) to not only issue currency but controll its supply as well. This allows them to manipulate the world's assets at their discretion.
The problem is....no one other than this cartel of banksters can afford to bail out Fannie Mae and Freddie Mac. They know this well and did their best to keep you in the dark. Need a little light? Click below.

video.google.com...

You don't have to take my word for the above...take theirs!:

quotes.liberty-tree.ca...

Don't feel left out for not knowing the above. They don't 'teach' this kind of stuff in business school. They're network controls the Dept. of Education as well. Only the elite in the top Universities get a glance into this world though even within the top institutions you won't hear the details. Most University finance faculty have no clue of what is presented in the video in prior post. You are NOT supposed to know this information for good reason...if their game is exposed...they can't hide any more...and the citizenry will DEMAND the dissolution of the illegal Federal Reserve System.
I can't imagine a more important video to circulate amongst the American populace at this point in time.
What we do right now....will affect our nation in perpitude.
Spread the truth and the truth will set this country and its people free of the schackles it was designed to bear.

What they need to do is split these companies up into many companies so that if one portion goes under it doesn't destroy the U.S. economy. As it stands how, Fannie and Freddie back way too many mortgages to let them fail...and that's NOT good...so splitting them up is the only way to have a stable system.

Originally posted by oceanaut1
You don't have to take my word for the above...take theirs!:

quotes.liberty-tree.ca...

Don't feel left out for not knowing the above. They don't 'teach' this kind of stuff in business school. They're network controls the Dept. of Education as well. Only the elite in the top Universities get a glance into this world though even within the top institutions you won't hear the details. Most University finance faculty have no clue of what is presented in the video in prior post. You are NOT supposed to know this information for good reason...if their game is exposed...they can't hide any more...and the citizenry will DEMAND the dissolution of the illegal Federal Reserve System.
I can't imagine a more important video to circulate amongst the American populace at this point in time.
What we do right now....will affect our nation in perpitude.
Spread the truth and the truth will set this country and its people free of the schackles it was designed to bear.

Blah Blah Blah, the Federal Reserve System is a brilliant system...but it's corrupt. The only scheme is that it plays politics, and I think it should be dissolved and the market should set the rates...I think the Federal Reserve System should still exist, but it should exist only as a lender of last resort along with some of it's other powers that do not have enough power on the markets to control the money supply...it should not be able to control interest rates.

Only the Dept. of the Treasury is 'authorized' in the Constitution to issue/regulate the supply of currency. The video provides a good explanation as to how the Treasury became insolvant and controlled by the international banking cartel.
Did you watch it in full?
I don't know where blah blah is coming from?
Would you care to explain?