US Considers Takeover Of Fannie Mae, Freddie Mac

2008-07-16 22:50:05

#1

ATG: Banned; +5,233|6950|Global Command

But I am confused;

Fannie Mae and its smaller cousin, Freddie Mac, were created by Congress to provide financing for the $8 trillion home-mortgage market. They are called "government-sponsored enterprises," or GSEs

http://www.creativeinvest.com/fnma/
So, how does government take over something they created and controlled?

Fannie and Freddy have been being investigated since 2004 for accounting irregularities. http://money.cnn.com/2005/05/19/news/ec … an_fannie/

At the time of his death in July, 2006 the U.S. Securities and Exchange Commission (SEC) had been seeking more than $90 million from Lay in addition to civil fines in regards to exactly the same kind of financial crimes. http://en.wikipedia.org/wiki/Enron_scandal#Trials

Did he forget to make a campaign contribution?

Our financial system is a house of cards built on a foundation of lies.

What, exactly determines the value of our dollar? The Federal reserve?

I have lost track.

Last edited by ATG (2008-07-16 22:51:31)

2008-07-16 22:52:16

#2

S.Lythberg: Mastermind; +429|6868|Chicago, IL

can i get my next paycheck in euros or wan please?

2008-07-16 22:52:51

#3

fadedsteve: GOP Sympathizer; +266|6912|Menlo Park, CA

I really hate whats fucking going on here!!

Bunch of arrogant muther fucking pricks ruining our fucking government and country! I am so sick of it I could spit!

2008-07-16 22:53:04

#4

(T)eflon(S)hadow: R.I.P. Neda; +456|7250|Grapevine, TX

i think its based on failed/ failing policies, written into law by lawyers and politicians behind closed private doors. Or is that just about everything else that is wrong with the US Government?

2008-07-16 22:56:00

#5

ATG: Banned; +5,233|6950|Global Command

I keep hearing about the bailout.
I keep not hearing that these are government programs to begin with.

Doesn't that create a paradox wherein a spiral vortex opens up and sucks us all into the cool cold inky blackness of space

2008-07-16 22:57:38

#6

Kmar: Truth is my Bitch; +5,695|7022|132 and Bush

http://www.latimes.com/news/printeditio … 9094.story

There is a great amount of confusion. Indymac was never managed by the government.

Xbone Stormsurgezz

2008-07-16 22:57:38

#7

S.Lythberg: Mastermind; +429|6868|Chicago, IL

ATG wrote:
I keep hearing about the bailout.
I keep not hearing that these are government programs to begin with.

Doesn't that create a paradox wherein a spiral vortex opens up and sucks us all into the cool cold inky blackness of space

blackness filled with your tax dollars

2008-07-16 23:04:21

#8

ATG: Banned; +5,233|6950|Global Command

Kmarion wrote:
http://www.latimes.com/news/printedition/front/la-fi-indymac16-2008jul16,0,5489094.story

There is a great amount of confusion. Indymac was never managed by the government.

I...wasn't referring to Indymac.

2008-07-16 23:09:38

#9

Kmar: Truth is my Bitch; +5,695|7022|132 and Bush

I know you weren't. You've been misled.. I was showing you why.
http://www.wlos.com/template/inews_wire … .com.shtml

Xbone Stormsurgezz

2008-07-16 23:16:15

#10

ATG: Banned; +5,233|6950|Global Command

Kmarion wrote:
I know you weren't. You've been misled.. I was showing you why.
http://www.wlos.com/template/inews_wire … .com.shtml

About what though?
That fanny and freddie are fine because they are federally owned/managed? Or are you saying they were federally created but privately managed? Or are you saying Indymac failed because it wasn't federally managed?

We know the feds do such a kick ass job of managing things.

2008-07-16 23:18:30

#11

Reciprocity: Member; +721|7002|the dank(super) side of Oregon

all this money doesn't just evaporate. The rich fucks that run this country also run all these banks, they run their companies into the ground, while taking a big fat cut, then hook themselves up with a nice bail out at our expense. All the while explaining how critical it is to the American economy to keep these schemes afloat.

It will all fix itself or we'll collapse into some kind of wonderful apocalypse.

2008-07-16 23:25:33

#12

Kmar: Truth is my Bitch; +5,695|7022|132 and Bush

ATG wrote:
Kmarion wrote:
I know you weren't. You've been misled.. I was showing you why.
http://www.wlos.com/template/inews_wire … .com.shtml
About what though?
That fanny and freddie are fine because they are federally owned/managed? Or are you saying they were federally created but privately managed? Or are you saying Indymac failed because it wasn't federally managed?

We know the feds do such a kick ass job of managing things.

You sort of answered your own question. Yes, Fannie/Freddie are managed by the government. Freddie buys home loans on the secondary market. There was confusion when it was announced the the Fed was going to take over indymac. (Since the bank failed and now they were responsible for FDIC)
http://media.putfile.com/FM-13 that might help.

Xbone Stormsurgezz

2008-07-16 23:28:06

#13

Kmar: Truth is my Bitch; +5,695|7022|132 and Bush

Reciprocity wrote:
all this money doesn't just evaporate. The rich fucks that run this country also run all these banks, they run their companies into the ground, while taking a big fat cut, then hook themselves up with a nice bail out at our expense. All the while explaining how critical it is to the American economy to keep these schemes afloat.

It will all fix itself or we'll collapse into some kind of wonderful apocalypse.

No it doesn't. Just like the money didn't just magically appear for the millions of home buyers during the 2004 boom. It's now sitting in the thousands of now empty homes all across the country.

Xbone Stormsurgezz

2008-07-16 23:29:12

#14

ATG: Banned; +5,233|6950|Global Command

Kmarion wrote:
ATG wrote:
Kmarion wrote:
I know you weren't. You've been misled.. I was showing you why.
http://www.wlos.com/template/inews_wire … .com.shtml
About what though?
That fanny and freddie are fine because they are federally owned/managed? Or are you saying they were federally created but privately managed? Or are you saying Indymac failed because it wasn't federally managed?

We know the feds do such a kick ass job of managing things.
You sort of answered your own question. Yes, Fannie/Freddie are managed by the government. Freddie buys home loans on the secondary market. There was confusion when it was announced the the Fed was going to take over indymac. (Since the bank failed and now they were responsible for FDIC)
http://media.putfile.com/FM-13 that might help.

Oh.
I wasn't confused about that part myself.
When the feds seize a bank it is usually to try and stop a run.

2008-07-16 23:31:33

#15

Kmar: Truth is my Bitch; +5,695|7022|132 and Bush

ATG wrote:
Kmarion wrote:
ATG wrote:

About what though?
That fanny and freddie are fine because they are federally owned/managed? Or are you saying they were federally created but privately managed? Or are you saying Indymac failed because it wasn't federally managed?

We know the feds do such a kick ass job of managing things.
You sort of answered your own question. Yes, Fannie/Freddie are managed by the government. Freddie buys home loans on the secondary market. There was confusion when it was announced the the Fed was going to take over indymac. (Since the bank failed and now they were responsible for FDIC)
http://media.putfile.com/FM-13 that might help.
Oh.
I wasn't confused about that part myself.
When the feds seize a bank it is usually to try and stop a run.

Yes.. u got it . There will be more. But hopefully not any big ones.. any more big ones at least.

Xbone Stormsurgezz

2008-07-16 23:53:02

#16

Reciprocity: Member; +721|7002|the dank(super) side of Oregon

Kmarion wrote:
No it doesn't. Just like the money didn't just magically appear for the millions of home buyers during the 2004 boom. It's now sitting in the thousands of now empty homes all across the country.

well, it did sort of magically appear for the millions of home buyers during the 2004 boom who had no business taking out home loans. And lenders selling their junk loans to firms like Bear Stearns so they can shill even more bad mortgages.

Throw on an absurdly low fed rate with an ARM fanboy the likes of Alan Greenspan, and you've got magic.

well, not really magic. more like bullshit.

2008-07-16 23:55:44

#17

Kmar: Truth is my Bitch; +5,695|7022|132 and Bush

Reciprocity wrote:
Kmarion wrote:
No it doesn't. Just like the money didn't just magically appear for the millions of home buyers during the 2004 boom. It's now sitting in the thousands of now empty homes all across the country.
well, it did sort of magically appear for the millions of home buyers during the 2004 boom who had no business taking out home loans. And lenders selling their junk loans to firms like Bear Stearns so they can shill even more bad mortgages.

Throw on an absurdly low fed rate with an ARM fanboy the likes of Alan Greenspan, and you've got magic.

well, not really magic. more like bullshit.

That's like kicking someone in the nuts and going "look, magic".

Xbone Stormsurgezz

2008-07-17 00:00:39

#18

Spark: liquid fluoride thorium reactor; +874|7096|Canberra, AUS

Slash it all down and start again. With a much, much simpler system. You can't expect something that no one understands to work.

The paradox is only a conflict between reality and your feeling what reality ought to be.
^{~ Richard Feynman}

2008-07-17 00:06:30

#19

Reciprocity: Member; +721|7002|the dank(super) side of Oregon

Spark wrote:
Slash it all down and start again. With a much, much simpler system. You can't expect something that no one understands to work.

It's so bloated and corrupted with money and power that I dont think you could simply slash and burn. You also have to remember that in many parts of this country, and the world, housing prices are no longer rooted in reality, so our mortgage and lending system cannot be based in reality.

2008-07-17 09:46:27

#20

Phrozenbot: Member; +632|7037|do not disturb

* Fannie Mae has failed to help make housing affordable (its primary mission)
* Fannie Mae's CEO was forced out in disgrace
* Fannie Mae and Freddie Mac were both involved in multi-year derivative scandals where they had no idea what their derivative books ever were.
* Government sponsorship of housing is absolutely guaranteed to drive up prices (until things implode as they did in the US).
Mish Blog.

The DTI (debt to income) ratios they gave out on some of these loans were as high as 65%. That is not "affordable" for any average American. AMBAC and MBIA were also government sponsored, giving these risky loans AAA ratins (most secure). Government sponsorship has failed, and now people are clamoring for more regulation? The gov needs to gtfo and stop giving these people a monopoly. Anyone who thinks they are too big to fail will over leverage themselves (Fannie Mae was leveraged 65 to 1).

And now it looks like we will be bailing out all the foreigners as well like the Chinese and Japanese (but not the Arabs, they are smarter than that) who have invested in the two mortgage giants. We shouldn't bail out PIMCO either.

Last edited by Phrozenbot (2008-07-17 09:49:12)

2008-07-17 09:54:40

#21

CameronPoe: Member; +2,925|6976

The upshot of all this is that the middle east, China and Japan will own western economies.

2008-07-17 10:00:13

#22

Phrozenbot: Member; +632|7037|do not disturb

I agree, a transfer of wealth from the west to the east is in action. The standard of living in Asia is increasing, while ours is declining.

2008-07-17 17:04:27

#23

Turquoise: O Canada; +1,596|6826|North Carolina

CameronPoe wrote:
The upshot of all this is that the middle east, China and Japan will own western economies.

That's not exactly an upshot, but it is true.

Of course, if we ditch the government's involvement in mortgages, the market will naturally create an environment where unnecessary risks are mostly shunned and safe investments are mostly favored.

2008-07-17 17:07:34

#24

usmarine2: Banned; +233|6212|Dublin, Ohio

CameronPoe wrote:
The upshot of all this is that the middle east, China and Japan will own western economies.

well its about time. only been around like thousands of years more than us ffs.

2008-07-17 17:25:19

#25

deeznutz1245: Connecticut: our chimps are stealin yo' faces.; +483|6914|Connecticut

ATG wrote:
cold inky blackness of space

Racist

Malloy must go

BF2S Forums US Considers Takeover Of Fannie Mae, Freddie Mac

ATG wrote:

Kmarion wrote:

Kmarion wrote:

ATG wrote:

Kmarion wrote:

Reciprocity wrote:

Kmarion wrote:

ATG wrote:

Kmarion wrote:

ATG wrote:

Kmarion wrote:

ATG wrote:

Kmarion wrote:

Reciprocity wrote:

Kmarion wrote:

Spark wrote:

CameronPoe wrote:

CameronPoe wrote:

ATG wrote:

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