Posted on 08/04/2008 2:50:33 PM PDT by nicola_tesla
Remember when I said that I believed that Asian Central Banks had threatened Paulson regarding Freddie and Fannie?
Here 'ya go:
"Concerns about the financial health of the biggest U.S. mortgage finance company had driven Fannie Mae's borrowing costs to the highest since March the previous week and its shares had tumbled 45 percent on the New York Stock Exchange. Investors in Asia, the biggest foreign owners of Fannie Mae's $3 trillion of bonds, were asking the Treasury to bolster the government- sponsored company and its smaller competitor, Freddie Mac, said three people with knowledge of the talks."
Don't you think the American People deserved to know BEFORE our government signed over $800 billion of taxpayer money that FOREIGN INVESTORS AND CENTRAL BANKS - THAT IS, FOREIGN GOVERNMENTS - effectively BLACKMAILED our government?
Are you prepared to sit on your ass while FOREIGN GOVERNMENTS dictate what our government does, to the tune of $800 billion United States Dollars we do not have, constituting a personal debt of about $2,200 per person in The United States?
That's right folks - every man, woman and child had extorted from them $2,200 (or nearly $10,000 per family of four!) plus interest (forever, since we will never pay this debt down) and you weren't even told that it happened until AFTER the bill was signed into law by President Bush.
Angry yet?
Angry enough to DEMAND that this bill be rescinded, and take every (lawful) action available to you as a United States citizen until it is?
If not now, then when will you insist our government NOT respond to blackmail by foreign interests - especially when they do so without telling you first?
By the way, having gotten away with it once, they will do so again. $10,000 per family is, in fact, quite cheap compared to what's coming.
You heard it here first.
Socialize the losses. Allow those who profited to keep their gains.
Wake up America.
www.fedupusa.org
reprehensible,
but who got us into this mess, so that we were in the position of being blackmailed?
Phil Gramm.
Congress < Progress
Yeah, I love bailing out domestic and foreign multimillionaires. That's where my tax dollars do the most good... On a more serious note, the "fix" is propping up the institutions of Frannie and Freddie more than fixing the problem.
The "fix" also seems aimed at maintaining full employment for retired pols than of helping the housing mess. Since the "help", interest rates for mortgages has gone up.
You’re right. These are props until the bottom falls out. Between now and when the bottom falls out, legislation will be passed wherein we the taxpayer will be on the hook for the cost, while Goldman Sachs et al. sell their long positions and go short(this takes time, don’t you know).
Huh?
I wouldn’t call it blackmail when they’re holding trillions of dollars of paper they bought in good faith. Should they just suck it up and take a trillion dollar loss on what was touted as being among the most secure of investments?
$800 billion? What is he talking about?
Started with FDR and continued with every single president since...
No, it wasn’t touted as the most secure of investments. Their prospectus - isn’t it quaint that anyone would actually read such a thing - explicitly they were NOT backed by the Federal Government. Thus FMN/FRE bonds paid a higher premium (interest) than Treasuries.
So now we’re compensating people (bondholders) who have already received a risk premium. Maybe they should give back to taxpayers that rate differential.
Heck, maybe they should just have stuck with Treasuries.
I’ll use your tactic - elucidate why this bill raised the national debt ceiling 800 billion dollars ?
Just in case you need more clues:
1. $800 billion of FNM/FRE bonds are owned by Asia, according to the Treasury. See the Bloomberg article.
http://www.bloomberg.com/apps/news?pid=20601109&sid=azswcZQvmUX0&refer=home
2. FNM/FRE have 5.2T in mortgage debt on their books, and their current default rate is 17%. 17% of 5.2T is...
You do the math.
That is supposedly the amount held by Asian banks. This is absolute BS - the part about guarantees by blackmail. Hell, what investor wouldn't sit down and make sure the Treasury Secretary understands that they consider the implicit guarantee of the Treasury to be very real?
And when you own 800 bil you swing a pretty big bat.
I hadn’t heard that the debt ceiling was raised. Now I’m scared!
And the bill buys these back from Asia with my tax dollars?
FNM/FRE have 5.2T in mortgage debt on their books, and their current default rate is 17%.
17% x $800 billion is $136 billion.
You do the math.
Just did. Thanks.
And you information about BS comes from ... where ?
Mine came from the Treasury. Yours comes from ???
So you think that a legal prospectus that says bonds are not guaranteed by the Fed Govt and that carry a higher premium than T-bills for that risk, should allow a big investor to use political pull/blackmail ? I call that extortion, myself, and being a taxpayer I’m just one who will be paying for it. Do you pay taxes ? Probably not, otherwise you should be concerned too.
Man, this country is just full of people who think the rule of law should give precedence to rule by favor.
You flunk basic math.
You are either a fool or a tool.
You contribute nothing.
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