so the Government is going to get into the housing business eh? HMMMM..... I wonder about that.

The top execs at fannie and freddie are being fired...put out to pasture??? Yeah.... I might believe that if pigs had wings...but you know I just don't buy it. If they go out the door it will be with huge golden parachutes or it will be down the hallway to another office with a different tag name on it and the same salary....where they belong is in jail...but they won't go there.

So....exactly what is the government doing here? Could it be a clever cover up to bail out the managers and share holders of a troubled investment firm that doesn't want to take the consequences for criminal risk taking??? Could it be that some of those shareholders are Big time Washington Politicians like Cheney or Boehner? Why do I really and truly believe that an investigation of this so called take over would uncover a whole list of famous names that banked on a no risk high return gamble that didn't work out with the idea that the government would bail it out later?

Let them go under....why bail them out? There is only one rationale for this...the big boys would get hurt...that's it...that's really the only thing that's at stake here.

Washington wants you to believe that it will take the whole country down if they don't do something...but that's not what will happen. What would happen is this...property that is currently being marketed would be forced to come down to where the real and actual balance of value exists....this in turn would put hundreds and maybe thousands of little CEO scrooges out on their asses..people who built an entire career on false values and invisible assets. These guys collectively have a lot of pull in Washington including plenty of pocket politicians....that's what you are now seeing.

Hell, Chuckie Schumer had no such concern for the execs (or lesser employees) at that California bank. I agree entirely. If there is no risk, because you know you'll get bailed out, you'll make a lot of stupid decisions without consequence to anyone but the taxpayer.

And this "people are losing their homes" is total crap. For one thing, 95% of Americans are paying their mortgages on time, not counting the ones who are slightly late but not in danger of foreclosure. For another thing, most of these are investment properties that people were hoping to flip in an up market. For a third thing, a good number of those are holding back payments in anticipation of a bailout.

Gas prices are a real economic crisis. This is a manufactured one.

being done at a break neck pace just before the end of the current administration and before the next wave of legislative seats exchanges....gotta wonder about that.

jo

If I am the owner of the home and the guy who I borrowed money from goes out of business; does that hurt me? Hell no! I hope he crashes, burns, and no one notices, so I can go scott free of the debt I owe him. But the government says we taxpayers need to step in and save the bastards with our money... so we can still lose our homes to their instruments of debt. Now I ask you, is that for our benefit?

If someone would only burn the bank down, then nobody'd ever know who owed how much, and we'd all be free! The debts held by banks are their primary asset, brainiac - this is what gets sold off to other companies when assets are liquidated. Consumers suffer because the value of notes is deflated by the increased supply, resulting in less incentive for banks to offer new loans, as they've just acquired all they ever wanted. Property owners suffer as properties deflate and they become increasingly topheavy with debt; the prospect of default becomes increasingly attractive, and the whole shebang just snowballs.

so morons like you with no comprehensive understanding of finance can still comprehend what is happening without having to understand the whole picture.

spare me the lecture on how mortgage banking works; I've been a professional mortgage banker for seven years. FANNIE MAE and FEDDIE MAC are troubled GSE's and the corruption that surrounds them is no big secret. Who do you think built the GSE's? It's all Wall Street, and where did Paulson come from? Oh, yeah, CEO of Goldman Sachs. What does Goldman Sachs own more of than anyone else in the world besides FANNIE MAE? Is it starting to tick yet?

So, we seem to be over a barrel. What is your inside, professional analysis of the consequences of allowing fannie and freddie to fail?

Because by your prior post, you seemed to anticipate borrower rejoicing as the notes they owed evaporated in a puff of corporate dissolution. Perhaps you need to clarify that - did I give it an ignorant, uninformed reading? Were you being more subtle than that?

the point was...

Paulson isn't seizing control of FANNIE MAE to resue homeowners (No, I never envisioned folks getting out of their Loan payments; I was just showing that bailing out their Lender does not resue them in any way, if anything it resues the noose around their neck) ...

Paulson was sent to Washington DC to chop up the GSEs and piecemeal them to the highest bidder... part of the bigger scheme of things that have been under way for the past decade. Wall Street decided to grab possession of the residential market... when they started down this path they owned 10% of it, in short order they will own 90% of it. All it took was the biggest housing bubble in the history of the world and a lot of dogged persistance from the FED.

I have a Dream.

That one day, men and women will not judge money not by the content of their checking account but by the system of origination

I have a Dream

That one day people all over this great nation will wake and realize that a debt system of currency issues money through loans

I have a Dream

That one day Americans and all nations will look straight at their central banks and ask the proverbial question: why is our money being created through investment banking?

I have a Dream

That one day the average joe will ask not what his country has done for him lately but ask what he can do to change the system entirely

I have a Dream

That one day, simple people high and low will finally stare up in the sky at night and realize that real money still exists; what's more they will start to discover who took it all and where they hide it

I have a Dream

that idiots like you will stop believing that this ongoing banking clusterfuck from hell that seized hold of our planet in the 1700's WILL EVER GIVE A RATS ASS ABOUT YOU AND ME

I have a Dream

but as youi know the bank's pride and joy is their paper tiger assets files which are apparently a lot more paper and a lot less asset than most wanted to admit.

Something stinks in this woodpile and it smells like the wallets of Washington legislators to me.

But yes you are right....if they just let them go out of business like they should this country would return to a time when blue collar men and their families could actually own a home. In so doing however the entire financial sector built on all of those non-existent assets would fall down around the necks of those power elite. Tough shit I say but apparently those power elite include many powerful legislators.

............BINGO.............­.

:)

What would be the consequences, to ignorant average joe's such as myself, were we to allow fannie and freddie to fail? I don't give a shit about Paulson's motives - I give a shit about the consequences Paulson's actions, or inaction, will have on me and the rest of us uneducated rubes that constitute the bulk of consumers embroiled in this mess.

So please - enlighten me. Tell me how allowing Fannie and Freddie to fail serves my best interests, even by the furthest stretch of your informed imagination.

into the lives of the average man and woman....The dollar would plummet to it's actual value...about 12 cents intrinsically. All of the mortgage backed securities would flush causing hundreds if not thousands of companies who were foolish enough to bank on them to stress into chapter 11 or maybe even full bankruptcy. CEO's would abscond with company pension funds to south America where they would be found by assassins hired by their former employees. It would be an incredibly bloody mess for a while until we re started the economy with real money and real rules. But in the end it would no doubt leave hundreds of thousands of properties drifting for quite a while...I'm not sure who would send the bill at that point...it could turn into a real mess with local regulations and tax claims by city governments too. But in the end I think it will happen just the way I described it sooner or later.

I loved it, but we both know it isn't what's happening. The real answer is this: DUH, that's the bluff, that's the play they made to get you to look the other way while they seized two private corporations that weren't in trouble and had plenty of money on hand and said so just yesterday.

Is it starting to tick, yet?

If the mortgages weren't worth ripping away from the GSEs would they have bothered to go after it? When ever someone goes after 12 trillion, you have to remember what is involved. It's a power play, it's big time maneuvering utilizing big time politics. First they hedged them in and stole the new business only t get burned on the back end of the bubble. But they were big enough to bite that bullet and keep going for the real gold; the mortgages that FANNIE is holding and can no longer protect. Do you see FANNIE MAE trying to sell their paper? Nope. But you sure can see Goldman Sachs drooling over it. So the very next day after FANNIE MAE announces that they are plenty liquid and have no problems the headlines are filled with news of the impending takeover... because FANNIE MAE would otherwise collapse?

banking system.

Unbelievable.

jo