Posted on 09/07/2008 9:02:41 AM PDT by CodeToad
NEW YORK (CNNMoney.com) -- Federal officials unveiled an extraordinary takeover on Sunday of troubled mortgage giants Fannie Mae and Freddie Mac, signaling the most dramatic move to date aimed at shoring up the nation's housing market.
(Excerpt) Read more at money.cnn.com ...
I am going to go out on a limb and predict that the Dow will RISE 289 points or so!
I am NOT a financial adviser, so don't take this as a tip it's ONLY a guess!
It means you’ll see 5 1/2 percent interest rates in 6 months or less.
bookmarking
Your statement is patently obvious. It is obvious all appraisers were not fraudulent. But your stated objection to “the inclusion of appraisers” among those who defrauded and created the housing bubble that has lead to the credit crisis, is without merit. Fraudulent appraisers were very much a part of the problem — those appraisers who were fraudulent. It does not appear to be a small few. It appears that many were coerced into making fraudulent appraisals or business would not be directed their way any more. That’s a lot of pressure, but they still were fraudulent.
Appraisers were very much included among those who inflated house prices, created the bubble and created the liquidity crisis. I’m sorry that reflects badly on the many honest appraisers like you.
Thank you as always for the insightful comments. Do you see the possibility of a bond market collapse from this bailout?
Clinton only signed the repeal of Glass-Steagall. Republicans Gramm and Leach were the ones who pushed for it. Without sponsorship by the Republicans in the House and Senate, repeal was not possible. The Republicans are more to blame than the Rapist was.
LOL! Now if I had known that Monday morning it would have been interesting! Of course, I don’t have the cash to gamble with the big boys.
It’s a lot easier to guess what the market’s gonna do after it closes!
Man, I could be rich if they would just tell me the closing numbers of the market the day before it happens!
I don't know. To some extent the takeover lowers systemic risk because the piles of derivatives based on agency debt are now as solid as the US treasury. The main problem, like all the "solutions" to problems that come from loose credit, is that long term inflation is slowly but surely becoming the only way out.
The remaining unnationalized bond market (e.g. corporate) may get a little short term relief as loose money chases their yields because the mortgage security yields stay suppressed. But that's just more of the same economic distortions like Bernanke and his low rates. Ultimately that has to catch up in the form of a credit meltdown, but that day of reckoning can be postponed for a long time.
The ultimate bond market collapse will come in treasuries. We no longer have enough actual taxpayers and tax revenue even in optimistic scenarios to pay future obligations even without the extra 5 trillion in agency obligations. But the dollar will have to melt down first and that won't happen for a while (e.g. until the current commodity slump is over)
Thanks. I was thinking, who will bother buying treasuries when they can get 10% from Fannie backstopped by the US government? Kiss treasuries good-bye.
Have to say I agree. And Gramm is certainly an arrogant piece of...
Don’t get me wrong... I still think the Rapist in Chief is the most evil piece of scum that has ever befouled the oval office, the oval office sink, the oval office carpet, etc., etc...
I PRAY he is not buried in Arlington. Because if he is, I won’t feel very good pissing on his grave, which I am sworn to do.
can someone put this in a clear way for me here
they are being taken over, yes
now where are we getting the money from and does this mean it will now be easier for those who messed up to go out and get another loan/
I tried watching Barney franks on cavuto and I might as well listened to a gibbering monkey as he made no sense and that is what I did understand
Who’s decision is this to bail them out?
The reason I ask is because I am no expert on this all I know is that I have a small house and I paid it off because I knew I could pay my small house off unlike buying a bigger house I couldn’t pay for
so I see no reason why I should help those who want to impress the next door neighbour or their family with a big house?
Any help would be helpful and appreciated please
“so I see no reason why I should help those who want to impress the next door neighbour or their family with a big house?”
It is much more than that. Much more. To make this a class envy/warfare issue is simply failing to understand the problem.
This is more for the banks than for irresponsible homeowners. Without this action, the entire banking system would collapse. Our politicians wanted to make it easier for people to get loans, and the result was that banks and lenders were allowed to, and in some instances forced to, give risky loans. Just be happy that you are responsible.
Concur, great post!
Thanks for the links. Especially the second one.
Posting ‘real links’ is incredibly easy. This page:
http://www.htmlgoodies.com/tutorials/getting_started/article.php/3479561
Lays it all out in an easy to understand manner. This is the webpage where I learned how to do various HTML things.
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