What a mess we're getting ourselves into.
Who manages the financial services regulatory agencies and answer to the President? Barney Frank and Ron Paul. The “Dream Team.” Maybe Frank was to busy boarding prostitutes to pay attention to the Fed, SEC, and Fannie Mae and the Banking industry.
Barney Frank is a text book definition for being grossly incompetence and negligent. He heads up the United States House Committee on Financial Services which oversees the entire financial services industry, including the securities, insurance, banking, and housing industries. He is directly responsible for the collapse of the banking industry. But you will never see a hearing with him on the hot seat.
Risky home loans were a product peddled by lending companies that inflated housing demand because everyone qualified. These risky loans were not Gov’t back loans, they were non-conforming loans and lending institutions set the underwriting guide lines and sold them off as MBS pools to hedge funds and investment companies. The idiots that were dumb enough to create products that allowed those with the worst credit history to do stated loan programs are the culprit. They loaned money to people that never paid for anything or had no credit at all. You just had to prove you had a job. I can’t imagine what other outcome they were anticipating.
The short of it is….many that are loosing their home, never technically qualified in the first place.
It’s just another “Katrina/levy” story fed to ignorant viewers by a biased media. Do you think Obama can manage this mess? Look at the Chicago slums he created….that was just one city.
This really concerns me.
Congress are full of a bunch of morons if they cannot see that China is investing heavily in our financial institutions for one primary purpose.....economic sabotage.
Since I have been an adult I’ve noticed America has a love affair with:
— Gimmicks
— The short term
— Get Rick Quick
— Spin (over substance)
— Appearances (vs. Reality)
I think we got to be a great country by keeping our nose to the grindstone, worshiping achievement, and not fooling ourselves. We’ve gotten away from most of that—big time. We have pissed away a lot of our assets and must rely on foreigners to maintain our lifestyle. We start burning them and they will not be amused.
I wonder who the top 5 United States holders are?
we???? if these two countries hold the bonds, and they go belly up, who loses? not us.........
Fire up the money presses!
No way they’ll stiff China.
Pucker up, fellow taxpayers.
This way they take us down one small step at a time.
Of course this was all done with the help of the Democrat Congress and now with Schumer's statement it is complete. Stupid is a stupid does or was this the plan all along?
No....what a mess the Chinese and Japanese have got themselves into.
They can’t afford to have the U.S. go belly up over debt.
>>”What a mess we’re getting ourselves into.”<<
I couldn’t agree with you more!!
But, don’t you mean what a mess the we have allowed the dimwitted greedy Washington politians to get us in? Our apathy and blind trust have gotten us into this mess.
If we cannot do it at the ballot box then it will be time for every PATRIOT, every person that holds the dream of a FRee America, every person that has fought for these freedoms to drive, walk or crawl their way to Washington D.C. and fire 99.2% of the SOB’s that we hired to abide by their Constitutional Oath. They have deceived and lied to us for their own personal gains. So many forget that THEY WORK FOR US.
Note: This is not a call for an overthrow of the U.S. government. It is a call for America to wake up and stand our ground.
Panax
Perhaps they weren't so sophisticated if they bought that garbage paper. Suckers - welcome to the capitalist world.
wonder if this country will ever move from a
consumer-debt society
to a savings society?
or, will manufacturing countries continue to fund our debt for the opportunities of sales?
ping
The Chinese are coming! The Chinese are coming!
The Chi-Coms may be tempted to simply go ahead and seize about $400 billion of American useful idiots’ investments in Red China. Why wait any longer? This is a good excuse from their perspective.
The problem could be that wall of bonuses Ms Gorelick built when she had a top job at Fannie Mae. Maybe it blocked good management? Hid the shenanigans from honest people?
Indeed- it’s a mess. But a layered mess, and each layer is gooier and sticker than the previous. The first layer prompts me to say- let the Macs and Maes fall under their own weight- that was built on junk food fat of people ill-equipped to purchase a house. But if Freddie and Fannie fall- who will pay? If we bail em out, who will pay? Then the layer of foreign investors...makes it a little stickier...and other layers I don’t even know much less understand.
A MESS.
That would be Corporations registered there to escape whatever taxes are levied in their home country [one guess].
Americans are the top holders of both agency securities and treasury bonds. Americans hold more of these securities than all of the foreign country holders added together. They show up in the holdings of domestic pension funds, money market and bond mutual funds, trusts, foundations, corporate treasuries, et al. I have no doubt that agency security bond holders will be bailed out. These are the securities that are considered as good as treasury securities. Shareholders might, however, be zeroed out. There is also the possibility that holders of agency-backed mortgage backed securities will get zapped - the insurance backing provided by the agencies for mortgage payments might just cease to exist, although I have no idea what maneuver they might use.
My feeling is that regulators will do something similar to what they did to nurse Citibank back to health in the 1990's - see no evil on the balance sheet for some period of time, while rearranging senior management (i.e. firing the people responsible), instituting tougher lending requirements and charging borrowers more. It's not like there's any company out there able to take on the volume of mortgages that the agencies routinely guaranteed or put on their balance sheet as assets. No matter what anyone says, these quasi-governmental agencies are literally too big to fail.
Ping to file.