Comments for Government takes over embattled Fannie, Freddie »
Posted By STONERS 1 year, 2 months ago in Business & FinanceThe U.S. government on Sunday seized control of mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N) in an aggressive move to help the distressed U.S. housing market and economy.
Read Full Story at news.yahoo.com »
RSS Join the Discussion
+ Add CommentComments So Far: 41
-
88%
STONERS1 year, 2 months ago
This comment is below the standard viewing threshold View It »
"Our economy and our markets will not recover until the bulk of this housing correction is behind us," Treasury Secretary Henry Paulson said at a news conference. "Fannie Mae and Freddie Mac are critical to turning the corner on housing."
Reply
"The decision to take control of the companies, which have $1.6 trillion in debt outstanding, and place them into a conservatorship under their regulator could amount to the largest financial bailout in U.S. history. The Treasury Department, which is taking an equity stake in the two firms, said there was no reason to expect that taxpayers would have to shoulder losses."-
altruisms-enemyComment removed: Hard Banned
-
-
-
-
80%
Dionys1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Word is that Repugnant Cons are already thinking up ways to deny those that have lost their homes in foreclosure votes in the next election due to their address having changed but their having had not enough time to register their new address.
Reply
How very honorable.
-
-
-
0%
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
BOTH sides of the aisle are responsible for this mess!
Reply
Look what Sheila Jackson Lee said - you don't have many members of Congress more liberal than Lee
Notice she actually applauds dismantling depression era regulation!
This mess goes back to the Financial Services Competition Act of 1999
CONGRESSIONAL RECORD: Extensions of Remarks HON. SHEILA JACKSON-LEE
Today I rise in support of H.R. 10, the Financial Services Competition Act of 1999
Today's vote represents groundbreaking financial services legislation that would dismantle many of the depression era laws currently hindering the financial services industry from engaging in a modern global marketplace.
CRA is a success story. Between 1993 and 1997, the number of home purchase loans to African Americans soared 62%; Hispanics saw an increase of 58 percent, Asian Americans nearly 30%; and loans to Native Americans increased by 25%
In Congress, we have spent more than twenty years debating how to update the Nation's antiquated banking laws that prohibit banks, securities firms and insurance companies from entering into another's businesses.
http://64.233.167.104/search?q=cache:BbjQwpXE_UsJ:...-
Neutral
vor1 year, 2 months ago
This comment is below the standard viewing threshold View It »
You are correct! This is no partisan issue. It is the belief espoused by nearly all politicians that we are entitled to spend more than we take in. Both as consumers and federal agencies.
Reply
At least, however, the Dems prevent a greater accumulation of debt by insisting that a reasonable tax is levied. The Bush Tax Cuts (and Reagan's before) both created massive deficits. The can throw in all their fuzzy math but the numbers just don't seem to add up in the end. We must learn to pay as we go. Soon the public would realize that we are in way over our heads and this excessive spending by government and by osmosis, the consumer, would end.-
100%
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Govenment spending will never be under control until every single program run by the Feds is honestly assessed for effectiveness. Every program should have a sunset provision - assessed even every 10 years would be better than the current automatic pilot with yearly increases
Reply
Ineffective programs need to be abolished
No new government programs started unless an old program is abolished
How many Federal jobs programs are there?
Are they effective?
No one knows
I doubt that there is a single member of Congress who could list every Federal jobs program and which department runs each one
The Federal govenment is totally out of control-
100%
wtagg1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Though you are correct, can you really support what you have just suggested? You seem to focus on social programs and though they are certainly significant contributors to the problem, there are others that demonstrate almost perfectly the principles to speak of above. The war on drugs is a great example as is the Iraq effort. The Pentagon is another area where waste and mismanagement has cost hundreds of billions.
Reply
All programs need to be revised, trimmed, or eliminated. Plan on getting a lot of cut and run comments since that word bite can be applied to any change in the status quo. That is the flaw in embracing the idea for one issue.
The other question is who do you think will work to accomplish such a task? It is obvious from the effort put forth by the republicans from 2001-2007 that one party controlling both the admin and congress cannot do such a thing. Actually, the only thing that has ever come close is the efforts of the Clinton admin and a very budget conscience republican congress. Ironically, accusations are made about the slashing of the budgets for certain programs (which is hardly the case and even if so, were approved by the republican congress) will have a door blocking effect on any attempt to do this now. It is a shame, because as you state, it is needed to get our country back on track and will not come from either of the two main candidates.
Even a candidate like Paul is unlikely to accomplish such a task since he would need to work with congress to accomplish this and each member would see it as taking away something from them and their pet programs. Even Paul's record in congress shows that he has and needs to play the game in bringing back pork and entitlements to those he represents. The only way it will happen is if everybody decides that it is needed. I think there is too much selfishness to ever reach that point unfortunately.-
Neutral
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
I'd like to see every single government program re-evaluated
Reply
Congress attaches sunset provisions to some programs - like the Bush tax cuts
Why shouldn't every program be treated the same?
How can government ever be efficient and effective if new programs continue to be piled on top of old programs?
"Ironically, accusations are made about the slashing of the budgets for certain programs (which is hardly the case"
LOL that's just Washington "budget speak"
They decide to increase spending on a program by 6%. Instead the increase is 4%. The next thing you know, members of Congress are running to the cameras complaining that the program is being cut!
Amazing how many voters still fall for that nonsense!
Zero based budgeting and periodic program review would go a long way to stopping this nonsense
I had a House member a number of years ago. I certainly didn't agree with him much of the time BUT he actually campaigned on NO PORK
He never brought back a dime of pork for his district and got elected term after term
Maybe they should switch to "revenue sharing" and let the states decide where to spend the money-
100%
wtagg1 year, 2 months ago
This comment is below the standard viewing threshold View It »
I completely agree, but I think that projects like the Iraq effort are part of the government spending that many will attempt to prevent that type of management from being applied. It is a perfect example of a project being created and implemented to obtain certain requirements and goals. The information provided, for whatever reason, is bad/false/misleading/etc..., yet the creators/sponsors of the project want to continue and attempt to create another set of goals, which ironically, are needed due to the implementation of the original project (fighting a new al qaeda presence when one did not exist). Instead of the project being used to reach and obtain goals, goals are created to sustain the need for the project.
Reply
That is horrible project management and can only lead to cost-overruns and total project failure. This is where government has failed us. This type of project management runs rampant throughout the military and social programs.
I could not agree more about the spinning of numbers that both parties take part in. Also the media has much to answer for and when I say media, I mean all media. They are all culpable. It is what allows them to generate huge amounts of income, which is not derived from bringing opposing views together, but by polarizing those views.
-
-
-
-
-
-
-
-
50%
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
And it doesn't end here
Reply
Auto Executives to Seek Government Help
Top auto executives, including General Motors Corp. Chief Executive Rick Wagoner, will launch a lobbying push this week for billions in government loans to help beleaguered auto makers and their suppliers.
They aim to get as much as $50 billion in low-cost loans, and will try to play down the idea they are seeking a bailout, arguing that Washington has offered similar help to a range of other troubled industries, people familiar with the auto makers' lobbying plans said.
http://online.wsj.com/article/SB122083515707008703... -
Neutral
wtagg1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Yes, there is irony in the admin to continue to expand the reach of our government. I fear that this can overflow into other areas of speculation, including commodities.
Reply
Trading oil and other energy sources like natural gas/coal/etc... as a commodity does exactly what for our nation's security?
-
-
80%
quackpot1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Deregulate the markets to allow the crooks to suck in the profits in the good years and leave the tax payers holding the bag in bad years?
Reply
Bush-economic theory is great for the ultra-rich, bad not for the rest, and really horrendous for the yet unborn that will have to pay off the debt.
We do not need another four years of McSame bankrupt economics. -
-
50%
moxxxxxxxxxx1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Deregulations, privatization a favorite game of republicans to take away money from the government and place in the pockets of corporate elite. Market economics needs to get back to the business that it was intended for- making widgets.
Reply -
Neutral
silvera1 year, 2 months ago
This comment is below the standard viewing threshold View It »
To all you cons out there that throw the word, Socialism", around like you know what you were talking about, this is what it really smells like. Soon the distinctions between corporations and the government will be completely erased and you won't have Obama or Karl Marx to blame, only yourselves, for putting that bozo and his pals in the White House.
Reply-
Neutral
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
This takeover was set up by the housing bailouts bills - Dodd in the Senate and Barney Frank in the House
Reply
Look what Frank said about this takeover
Frank Confirms Treasury Intervention
To Shore Up Fannie Mae, Freddie Mac
Rep. Barney Frank (D., Mass.) confirmed that Treasury Secretary Henry Paulson is planning government intervention to back troubled mortgage giants Fannie Mae and Freddie Mac.
The chairman of the House Financial Services Committee said in a statement Saturday that Mr. Paulson "intends to use the powers that Congress provided it" in a law passed in July to keep Fannie Mae and Freddie Mac stable and functioning
http://online.wsj.com/article/SB122072588739407007...-
-
-
100%
quackpot1 year, 2 months ago
This comment is below the standard viewing threshold View It »
The need to fix the problem is obvious.
Reply
It should also be obvious, however, that steps need to be taken to make sure that similar problems don't happen again.
The Republican approach of deregulation has placed the most sensitive areas of the economy in the hands of a few con artists, and the public is now paying the bill. The voters need to JUST SAY NO to more of the same.-
altruisms-enemyComment removed: Hard Banned
-
-
-
-
-
Neutral
vor1 year, 2 months ago
This comment is below the standard viewing threshold View It »
I thought the total together was more like 25 million? If this had occured several centuries ago their heads would be appearing on pikes in the public square.
Reply
What do these people do with all this money? It appears to me they use it to pull in and out of the markets (for profit taking purposes) causing my relatively meager money wagered to become incredibly unstable. That has been the pattern in the last year but has been a grand tradition for decades. They simply create more unearned funds from money they never truly deserved. Vacuuming away further wealth to the top percentile and leaving an ever smaller piece of the pie for the common man to fight over. . -
Neutral
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Don't count on it!
Reply
Fannie Mae Buys Immunity via Rahm Emmanuel, Acorn, Operation Push, Harvard...
President Bush is poised to sign the housing and Fannie Mae bailout bill, after the Senate passed it with 72 votes on the weekend. But an underreported part of this story is that Majority Leader Harry Reid refused to allow a vote on Republican Jim DeMint’s amendment to bar political donations and lobbying by Fannie and its sibling, Freddie Mac.
Freddie Mac Political Donations Have Been Scrutinized Before
Freddie Mac, the home mortgage powerhouse, agreed on Tuesday to pay $3.8 million in civil penalties to the Federal Election Commission, which had accused it of improperly funneling corporate executives’ donations to candidates and holding lavish fund-raisers that often benefited congressmen on an influential House committee.
Freddie Mac Support for Rahm Emanuel
There does seem to be a pattern of distraught companies under the influence of politicians, and successful politicians in Washington DC.
Perhaps the politicians are also under the influence of the distraught companies, or previously on the Board of Directors of a very distressed bank, as in the case of Rahm Emanuel at Freddie Mac.
Link to these and other articles on Fannie and Freddie can be found here
http://www.cdobs.com/archive/tags/Emanuel/
VERY interesting reading
-
-
-
-
Neutral
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Fannie and Freddie should be dismantled after the housing market is stabilized
Reply
Interesting history on these 2 monstrocities:
http://www.creativeinvest.com/fnma/fnmapr12.html -
Neutral
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Hold on to your hat!
Reply
Freddie and Fannie currently hold $5.2 trillion in mortgage loans and guarantees. The riskiest loans, known as the alt-A and subprime mortgages, constitute about 15 percent of that portfolio, worth about $780 billion
http://tpmcafe.talkingpointsmemo.com/2008/07/25/fr...
-
-
-
Neutral
tchef1 year, 2 months ago
This comment is below the standard viewing threshold View It »
This is from a CNN article this morning. "With Friday's report that foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon."
Reply
These lending standards should have never been relaxed. Common sense tells you that if someone can't pay the bills they have and save enough for a down payment they are not going to be able to pay a mortgage to term. When I bought my house in 1992 I was required to put 5% down and I had to show where that money came from to prove that I didn't borrow it.-
Neutral
wtagg1 year, 2 months ago
This comment is below the standard viewing threshold View It »
When my wife and I bought our home, we had to put down 30% and that was with a stellar credit history because I was self-employed. We've gone from that to 0% down and get money back. A speculative environment was created and that is a high risk environment. The loan companies help that environment due to competing with each other. To compete, they relaxed (an understatement) their requirements to obtain a loan. Couple that with a stagnant economy and you have a scenario ripe with financial disaster.
Reply
Yes, it is terrible to see people lose their homes while the executive management that helped those people get loans they shouldn't had get plump exit buyouts that will in the end be funded from taxpayer funds.
-
-
MyCampingMallComment removed: Spam
-
-
-
Neutral
nostalgia1 year, 2 months ago
This comment is below the standard viewing threshold View It »
Fannie and Freddie were never REALLY private
Reply
Everyone knew that if they got into trouble the Feds would bail them out
High time to stop having "quasi" private organizations
You've been bailing out Amtrak for years
And since it is election time, do you really think that homeowners who were such poor risks they didn't qualify for Federal help under the bailout legislation will actually be denied? -
-
loading ...
Add a Comment
Sign In With Your Propeller Account
Please keep your comments relevant to this story.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.