Nothing to worry about. We (the taxpayers) will keep them going. It will be business as usual. With all the loan programs that have gone away, the govt will not allow them to tighten guidelines. Remember the govt's motto: Keep throwing money at the problem until it goes away. Of course this usually means we now have another pig at the money trough and it is business as usual so therefore no longer a problem.
_________________ Failure is only a new opportunity to succeed.
Since1989 Dyn-o-mite!
Joined: 01 Aug 2007
Posts: 249
Location: Scottsdale AZ
...I'd rather see them "bail-out" FNMA/FHLMC than every domestic (and foreign) gambling house, (errr, I meant investment brokerage house), from their "bad bets"....
_________________ "I never submitted the whole system of my opinions to the creed of any party of men whatever, in religion, in philosophy, in politics, or in anything else, where I was capable of thinking for myself. Such an addiction is the last degradation of a free and moral agent." --Thomas Jefferson to Francis Hopkinson, 1789.
SteveS Dud?
Joined: 22 May 2008
Posts: 18
Location: South Florida
It doesn't look like everyone is on the doom and gloom train for Fannie and Freddie.
July 10 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson said he's been assured by the regulator for Fannie Mae and Freddie Mac that the two government-chartered mortgage companies have enough capital.
The Office of Federal Housing Enterprise Oversight ``has made clear that they are adequately capitalized,'' Paulson said in prepared testimony for the House Financial Services Committee.
Paulson said he is counting on Fannie Mae and Freddie Mac, which own or guarantee about half of the $12 trillion in home loans, to help revive the U.S. housing market. Fannie Mae shares tumbled 13 percent yesterday in New York to the lowest level in almost 14 years, and Freddie Mac has fallen 70 percent this year in New York Stock Exchange composite trading.
``Fannie Mae and Freddie Mac are also working through this challenging period,'' Paulson said. ``They play an important role in housing markets today and need to continue to play an important role in the future.''
In his testimony, Paulson repeated the Treasury's proposals to overhaul U.S. financial regulation and lay out the parameters for the use of government funds for bailouts. Regulators need ``additional emergency authority'' to help ailing firms, along with a resolution process similar to the one already in place for commercial bank failures, he said.
``It is clear that some institutions, if they fail, can have a systemic impact,'' Paulson said.
``Any potential commitment of government support should be an extraordinary event that requires the engagement of the Treasury Department and contains sufficient criteria to prevent costs to the taxpayer to the greatest extent possible,'' he said.
Paulson said that while financial markets will take ``additional time'' to stabilize ``I have confidence in our regulators and markets.''
What would you expect the Treasury Secretary to say? Even if he thinks it is going right down the crapper el pronto, he has to keep the appearance of confidence up.
That being said, I'm no Doom and Gloomer either.
Fight On!!
suetheloanlady Cherry Bomb
Joined: 02 Nov 2007
Posts: 193
Location: Atlanta, Georgia
oh please....this is the same guy that says the economy isnt as bad as everyone thinks!!!!give me a break!!!!Notice that an independent firm looked at the way Fannie & Freddie are keeping their books and is worried about their liquidity....kind of like someone coming to an individual and looking over their checkbook/deposits, income coming in, etc and saying....hey you have more checks out than you can cover....
Paulson is feeding us the government line....the same line that said the stimulus would be enough to pull this country out of the slump...notice that the only increase in retail sales after stimulus checks start arriving....retailers like Walmart, Costco....discounters....not the Best Buy folks,Circuit City, car dealerships, etc....people used their stimulus checks for necessities like food, gas (which you can buy at Walmart,Sams)
The government doesnt want to admit what kind of shape we are in...because then they would have to admit they were asleep at the wheel. Plus they know the outcry that is going to happen when the American people have to bail out Countrywide/aka BofA, Freddie & Fannie....some what was said when they bailed out Lehman's but not enough!!!I say let Fannie & Freddie and the rest of them go under....i am sick of our taxes going up....i dont see the fed. government bailing me out when my employer up and went under leaving me and my family high and dry....not even doing anything to stop those crooks from reopening....
I want the government to spend my money doing something about gas prices!!!
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