McCain Open to Bailouts for Fannie and Freddie

The Wall Street Journal - Washington Wire ^ | 2008-07-10 | Elizabeth Holmes

[rabscuttle385]

John McCain opened the door for a bailout of Fannie Mae and Freddie Mac should the mortgage giants fail.

“Those institutions, Fannie and Freddie, have been responsible for millions of Americans to be able to own their own homes, and they will not fail, we will not allow them to fail,” McCain said Thursday to reporters during an unannounced stop at the Senate Coney Island restaurant in Livonia, Mich.

[rabscuttle385]

McCain sees no need for Fannie, Freddie bailout now

$800B+ in assets, each, plus derivatives stashed everywhere. A total bailout would cost trillions...to you and me.

[WoofDog123]

Did anyone ever believe ongoing reinterations of the printed fact that washington was not a guarantor for freddie/fannie, only ginnie?

[rabscuttle385]

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[C19fan]

Did anyone ever believe ongoing reinterations of the printed fact that washington was not a guarantor for freddie/fannie, only ginnie?

Until recently obviously not since Fannie and Freddie were able to issue debt only a few basis points above Treasury rates.

[TheThinker]

Is anyone really surprised that we eventually would have to bail out these defaulting borrowers given the fallout of so many borrrowers losing homes and the fact that it’s an election year?

[econjack]

I don't get it. Greedy lenders made bad loans to stupid buyers who couldn’t afford the payments or flip the house like they had hoped. So for reasons I don't understand, I'm supposed to pony up for these private transactions that were founded on simple greed. Come on, John. It's their poo, let them clean themselves up.

[djsherin]

Somehow, I don’t think they care much about the cost. We can always borrow or print more if need be. $9 trillion in debt? Pshhh, we’ll double that! It’s the American way!

[LiberConservative]

I’m writing a busines plan. Just how big does a business have to get before you can look for a federal bailout if you fail?

[GOPologist]

This is what is important—not guys cutting someone's testicles, or some pseudo-minister damning the country, or some candidate's wife finally finding a reason to love America, etc., etc.

Remember: “It's the economy, ‘stupid’.”

[Hoffer Rand]

I saw this coming 5 years ago. Said at the time it was going to make the S&L scandal of the 80s look like a cake walk.

[C19fan]

Somehow, I don’t think they care much about the cost. We can always borrow or print more if need be. $9 trillion in debt? Pshhh, we’ll double that! It’s the American way!

Actually a bailout of Fannie/Freddie might threaten the US's AAA credit rating.

[TADSLOS]

A total bailout would cost trillions...to you and me.

Don't worry, all of those 22+ million new citizanos will help chip in with their income taxes. /s/

[Night Hides Not]

Come on, John. It's their poo, let them clean themselves up.

Let's be nice here. They're "God's children", too.

This bailout better include a perp walk for Franklin Raines.

[tumblindice]

“Auntie Em and I paid for a fixed-rate loan.
I doubt you have anything in your bag for us.”
Dorothy Gale, youthful, conservative twister-tamer

“That’s right. Beat it kid.”
The Wonderful Wizard of Arizona

[SierraWasp]

I never have appreciated GSE's (government sponsored emptyprises) because they compete with free enterprises while not having the same ridiculous regulatory burden, nor taxing headwind...

Plus, they're usually monopolies, or close to it and infested with flaming, featherbedding, unionized liberals instead of firebreathing, committed and righteous conservatives!!!

[Dems_R_Losers]

I’m writing a business plan. Just how big does a business have to get before you can look for a federal bailout if you fail?

You don't have to get that big, just be sure you hire lots of well-connected Democrats, raise big money for Democrats in Congress, and then threaten to stop lending in their districts if they try to touch you.

[SierraWasp]

I don’t know, but I do know that the more you borrow the safer you’ll be because then they can’t afford for you to fail!!!

[Wally_Kalbacken]

Jeezus Keerist - his answers on economics and economic policy are as deep as a thimble!

[C19fan]

Found this on CNN:

“The doomsday scenario could cost taxpayers more than $1 trillion, says the S&P report. The report went so far as to say that a government bailout of Fannie or Freddie could force the agency to lower its rating on the creditworthiness of the United States.”

http://money.cnn.com/2008/07/09/news/companies/benner_fanniefreddie.fortune/?postversion=2008071013

[dalereed]

“Let’s be nice here. They’re “God’s children”, too.”

If that’s the way you feel, you bail them out, just don’t take 1 cent of my money to do it.

Every banker can go under and anyone that can’t meet the obligation of the contracts that they signed can go reside under a bush just so that that bush isn’t in my neighborhood.