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Fannie, Freddie bailout triggers credit default swaps($1+ trillion derivative contracts involved)
MarketWatch ^ | 09/08/08 | Alistair Barr

Posted on 09/08/2008 9:54:53 PM PDT by TigerLikesRooster

Fannie, Freddie bailout triggers credit default swaps

More than $1 trillion of derivative contracts will need to be settled

By Alistair Barr, MarketWatch

Last update: 1:30 p.m. EDT Sept. 8, 2008

SAN FRANCISCO (MarketWatch) - The U.S. government's seizure of Fannie Mae and Freddie Mac has triggered more than $1 trillion of credit default swaps tied to the mortgage giants. The International Swaps and Derivatives Association said in a memo on Monday that 13 major credit default swap dealers unanimously agreed that a credit event had occurred.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: cds; derivative; fanniemae; freddiemac; govwatch; housingbubble; mccain; mccainlist; mccainsbailout; mccaintruthfile
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To: ex-Texan
$1 trillion plus, dumped on the American tax payers to bail out well-healed crooks ...incredible!

Fannie Mae's Patron Saint

Asian Stocks Decline as Growth Concerns Eclipse Fannie Rally

61 posted on 09/09/2008 4:52:27 PM PDT by M. Espinola (Freedom is not 'free'.)
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To: GregoryFul
Quants never figured in that FNM and FRE would go bankrupt.

Blimey, is that a black swan that I see?

62 posted on 09/09/2008 4:57:28 PM PDT by DeaconBenjamin
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To: Travis McGee; TigerLikesRooster; M. Espinola; Calpernia; Uncle Ike; RSmithOpt
Video: Chris Dodds 'Sweetheart Deal'

How about that _____ ? Crooks making money and being part of crooks paying off crooks. This debacle is a massive circle jerk where everybody gets rich: 'What goes around, comes around.'

63 posted on 09/09/2008 4:57:52 PM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: chuckles

add me to the want an answer list


64 posted on 09/09/2008 4:59:02 PM PDT by EBH ( ... the riotousness of the crowd is always very close to madness. --Alculin c.735-804)
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To: djsherin
I’ve read an article saying that the likely cost of the bailout will be $2.5 trillion and at least $1.3 trillion.

Stop going to huffington.com

65 posted on 09/09/2008 5:06:14 PM PDT by E=MC2
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To: M. Espinola
Great post ! . . .

But Drudge has a new report up from the Financial Times saying the cost will exceed $ 5.4 Trillion !

Also the Congressional Budget Office just said today the bail out means must be carried on the governments books ! F & F must now be considered part of the public sector. The White House must be going bonkers trying to play catch up. Insanity rules in D.C.

66 posted on 09/09/2008 5:08:09 PM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: volunbeer

I’m talking about the wealthy executives who reaped millions from this debacle, and are now leaving the smoking wreckage for others to clean up.


67 posted on 09/09/2008 5:09:58 PM PDT by Wolfie
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To: Wolfie

“I’m talking about the wealthy executives who reaped millions from this debacle, and are now leaving the smoking wreckage for others to clean up.”

_______________

Sorry I misunderstood. I agree 100% and perhaps those in charge should watch the clean-up from behind bars for defrauding the taxpayers.

That is the way I feel right now. I don’t believe government has any business insuring any private industry but if we do........... prison for fraud seems appropriate.


68 posted on 09/09/2008 6:56:06 PM PDT by volunbeer (Dear heaven.... we really need President Reagan again!)
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To: E=MC2

It definitely wasn’t huffington.com.


69 posted on 09/09/2008 9:24:45 PM PDT by djsherin
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To: EBH
I hate to say it, but I have a sneaky suspicion that after the taxpayer gets a huge bill and jobs are destroyed and the rich get their parachutes, we will find that miraculously, these banks will have "WRITE UPS" instead of write downs and everything will be peachy except the value of the dollar and a few 401 pensions.

I'm no expert, but after you write down a piece of paper, you take it off your taxes and then it seems to come back to life with some value. If you or I said our car was destroyed and was worthless and took it off as a uninsured loss, could we sell it next year, even for $100?

It would be a short book for me to write what I think will happen, but lets say the end result will be a huge transfer of taxpayer wealth to Goldman Sachs, Merril Lynch, or Warren Buffet/Sorros types. The "worthless" paper will be bundled and called some other name of a product and sold to these types for 10 cents on the dollar and we will make the banks whole. Then they will re evaluate the value of said paper and sell off the assets for 50 cents on the dollar. This is no different than Enron, but you will see the taxpayer screwed and no one goes to prison. If there were only some gubmint official that cared, they would follow the money next year and write a best seller on who made out and who lost. Someone should go to prison. This much money shouldn't evaporate without punishment. You watch, it will be forgotten by Christmas.

70 posted on 09/09/2008 11:38:39 PM PDT by chuckles
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To: Herakles

I got 2,000,000 homeowners who unanimously decided that the FED is going to pay off their mortgage for them. :-)


71 posted on 09/10/2008 12:38:15 AM PDT by monkeyshine
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To: monkeyshine
“I got 2,000,000 homeowners who unanimously decided that the FED is going to pay off their mortgage for them. :-)”

Welcome to the US where incompetence is rewarded by the federal government, and competent people get screwed; stupid people at the top make all the money and the smart capable people at the bottom get table scraps and maybe keep their jobs.

Do like me; don't buy that $30,000 car (which one isn't 30k today) or that 5 billion dollar house (that is really only worth 20k) and retire; one less competent person slaving away to support the upper level incompetent inbred blue blood class. When they really need you, make sure they pay cash or gold up front!

72 posted on 09/12/2008 4:04:02 PM PDT by Herakles (Diversity is code word for anti-white racism)
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