U.S. rescues Fannie, Freddie

marketwatch.com ^ | 7/13/08

[Sleeping Freeper]

U.S. rescues Fannie, Freddie Treasury Department raises credit line, has power to buy companies' stock. Fed will open discount-lending to two government-sponsored mortgage lenders. Paulson calls for new regulatory controls.

[mulligan]

And find a taxpayer who, in the long run, is going to be better off because of the continued government bailouts of poorly run and managed companies.

[Grunthor]

“Treasury, Fed move to rescue Fannie and Freddie”

Obama isn’t going to bring us Socialism. It’s already here IN FREAKIN’ SPADES!

[rushed]

With the stimulus package and recent string of bailouts I’d swear we are in the midst of a second “New Deal.” I wonder if that is such a bad thing considering that there is so much uncertainty in virtually every sector of the economy. Let the executive and legislative branches kick a little ass and protect American interests through strategic initiatives that helps US in the short and long term.

[JasonC]

That'd be all of them. Not hard.

People practice one entry accounting. They pretend every raise they ever got was merited as a real increase, but the nasty financiers and gubmint went and mucked everything up and took half of it back through inflation and what-not. Nobody ever thinks the first part was about as much due to more money sloshing around as to anything they did themselves.

[omega4179]

Its only paper, print more and bail everything out.lets send everyone a check for $1,000,000 and end the recession right now!

/s

[JasonC]

Since the Iranian situation is what is sending oil into orbit, and oil in orbit is bankrupting GM and Ford as well as triggering general inflation, that distinction doesn't go through.

Everyone is still trying to pretend we can just wish it all away and ignore it and do whatever we like. But meanwhile, at present prices the proven oil reserves of just the countries on the southern side of the Persian gulf, are worth more than all the world's stock markets, combined. A few hundred Arab princes can buy our entire financial system tomorrow for a song, if they decide they want to.

Ignoring it just means surrendering and losing, it won't make any of it go away.

[JasonC]

Since all its profits every year go to the US treasury, and its board is appointed by the president and confirmed by the senate, I'd say it is to all intents and purposes a government agency. Nominally it is a whole conglomerate and the US treasury is its controlling owner, but that is a relic of how it was created, and its only practical consequence is that nationally chartered banks have contractual access to the discount window (ability to borrow) - but at rates and terms set by the Fed, up to limits it sets, subject to its regulatory approval, etc

[cowtowney]

The Treasury may not let them fail, but in doing so I hope the equity is wiped out or minimized to $1.00.

[Thunder90]

It is not oil speculators. It was Putin, Chavez, and the Ayatollah who liked the dog and pony show.

[JasonC]

Futures will go up until Iran's nuclear program is a smoking ruin and oil is flowing freely through the strait of Hormuz despite any resulting fracas that results.

If nobody attacks Iran's nuclear program, Iran will get nukes and use them - and oil will be going up like a rocket the entire time. Along the way, Arab oil money will buy the entire modern west and we will all have the choice of working for them forever, or trashing capitalism to take it back.

[mysterio]

I predict oil will continue to rise as long as it’s a monopoly and we stubbornly refuse to give it a competitor.

[JasonC]

Paulson made it quite clear the opposite is intended, because what you suggest would end in re-nationalizing the agencies. There wouldn't be any private shareholders any more. Paulson said, in their present form as private companies, and explicitly sought authority to buy their stock, not just lend to them. You don't buy something you are intentionally driving to zero.

[JasonC]

It has all sorts of competitors, but we refuse to use them. We refuse to develop oil, either. The green left wants the west to deindustrialize for the sake of Gaia, and the red left wants to destroy capitalism for the sake of socialism. And everyone is letting them, so they will.

[Alter Kaker]

There goes the sovereign credit rating of the United States of America...

[FReepapalooza]

The Federal Reserve is not a government agency.

[autumnraine]

That’s the Catch 22 about this. The higher it goes, the richer they get. It’s not like they are losing any money with it going nearly triple in a year. They are just making triple profits (and I don’t mean the oil companies, I mean OPEC). So we are financing our own downfall. To not drill here and sustain ourselves without giving the Arab world more money until a better alternative vehicle can be created is national suicide IMO.

[johnny reb]

The price of ammo is moving higher.I sort of expect it to go up more with every move the feds take toward communisim!

[MichiganConservative]

...their profit is privatized but their risk is socialized...

This is nothing new for Bush. He's a baseball man, you know.

Bend over tax payers. It's time to get it without the lube again.

[MichiganConservative]

... dictating that loans need to be given even to those not capable of personally handling the loans that they WANT.

It's racist to evaluate someone's ability to pay back a lone, you know?

You people deserve the economic pain we are going to get.

But hey, only crazy kooks worry about money and economics.

Maybe if we would just nuke Iran, Pakistan, Afghanistan, China, Libya, Russia, Chechnya, and Britain all of our problems would disappear.

[AndyJackson]

Jamie Gorelick

She is part of the take on this scam? Why don't things like this surprise me any more?