Media Mum on Barney Frank's Fannie Mae Love Connection http://www.businessandmedia.org/articles/2008/20080924145932.aspx
Posted on 12/25/2009 7:55:43 AM PST by reaganaut1
The government has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie Mac.
The Treasury Department said Thursday it removed the $400 billion financial cap on the money it will provide to keep the companies afloat. Already, taxpayers have shelled out $111 billion to the pair, and a senior Treasury official said losses are not expected to exceed the government's estimate this summer of $170 billion over 10 years.
Treasury Department officials said it will now use a flexible formula to ensure the two agencies can stand behind the billions of dollars in mortgage-backed securities they sell to investors. Under the formula, financial support would increase according to how much each firm loses in a quarter. The cap in place at the end of 2012 would apply thereafter.
By making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress.
While most analysts say the companies are unlikely to use the full $400 billion, Treasury officials said they decided to lift the caps to eliminate any uncertainty among investors about the government's commitments. But the timing of the announcement on a traditionally slow news day raised eyebrows.
"The companies are nowhere close to using the $400 billion they had before, so why do this now?" said Bert Ely, a banking consultant in Alexandria, Va. "It's possible we may see some horrendous numbers for the fourth quarter and, thus 2009, and Treasury wants to calm the markets."
Fannie Mae and Freddie Mac provide vital liquidity to the mortgage industry by purchasing home loans from lenders and selling them to investors. Together, they own or guarantee almost 31 million home loans worth about $5.5 trillion, or about half of all mortgages.
(Excerpt) Read more at news.yahoo.com ...
Can we force the government to buy us ammo in support of our 2nd amendment rights?
Or get a 100% fannie / freeddy mortgage to set up indoor shootiing ranges all across the coutry, at least two in every state.
criminals and 100% socialist or dems
We need to repost - or keep bumping this thread when the holidays are over. This is a big story.
That’s possible - or maybe it’s hush money ...
Lords of Finance: The Bankers Who Broke the World, Liaquat Ahamed
In December 1930, the great economist Maynard Keynes published an article in which he described the world as living in “the shadows of one of the greatest economic catastrophes in modern history.” The world was then 18 months into what would become the Great Depression. The stock market was down about 60%, profits had fallen in half and unemployed had climbed from 4% to about 10%.
If you take our present situation, 16 months into the current recession, we’re about at the same place. The stock market is down 50 to 60 percent, profits are down 50 percent, unemployment is up from 4.5% to over 8%.
Over the next 18 months between January 1930 and July 1932 the bottom fell out of the world economy. It did so because the authorities applied the wrong medicine to what was a very sick economy. They let the banking system go under, they tried to cut the budget deficit by curbing government expenditure and raising taxes, they refused to assist the European banking system, and they even raised interest rates. It was no wonder the global economy crumbled.
(excerpt)http://www.freerepublic.com/focus/news/2414946/posts?page=3#3
....just another version of things, frightening really the lies...
The other links to this story. One big old mafia crime family. Geithner, Rahm and Obama.
If the Treasury approves the $800 billion commitment to Fannie and Freddie by the end of the year, it will mean that under the influence of Rahm Emanuel, the White House is moving a trillion-dollar slush fund into corruption-riddled companies with no oversight in place. This will allow Fannie and Freddie to continue to purchase more toxic assets from banks, acting as a back-door increase of the TARP without congressional approval.
Fannie and Freddie CEOs to get up to $6M in pay http://bit.ly/86vmvU
And then there’s the “non”-political organization ACORN which has been documented to have connections with Fannie and Freddie (what? Trying to be salesmen for these ‘companies’ ISN’T a connection!?).
I got this e-mail a couple days ago about FOX news. Does anyone know that???
DO NOT MISS THIS COMING SUNDAY NIGHT
DEC 27@ 9PM Eastern Time.
I must be missing something here...I don’t understand.
This summer the estimate was 170 billion in taxpayer bailouts spread over the next 10 years, but now Geithner has seen fit to remove a 400 billion Congressional cap on Fannie/Freddie bailouts? And does saying so make it so, as in “by doing it now, before the end of the year, we don’t have to get permission from our poor beleaguered Congress-critters...”
Why? What does announcing the move on Christmas got to do with the price of tea in China? What??? This is Christmas Crappola, folks!! And don’t think there isn’t a jolly good reason for removing the ceiling off of 400 billion, either. We’re looking totally screwed.
Thanks for replying/posting. Thanks to all posters. THREAD/THREAT/DOMESTIC ENEMY BUMP!
If you mean what I think you mean, Bondzilla is contentedly munching on negative real interest rates. He ain't as fierce as he was in the '80s.
Obama actively OPPOSED reform of Freddie and Fannie! “and further weakened existing regulation.”
During this period[2005], Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole.
Meanwhile, Dodd — who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 — actively opposed such measures and further weakened existing regulation.
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/11/AR2008091102841.html
(from a previous PERRDOGG post)
This is government in action: rewarding failure.
Media Mum on Barney Frank's Fannie Mae Love Connection http://www.businessandmedia.org/articles/2008/20080924145932.aspx
Well, now I know what Barney got for Christmas.
That’s what I was referring to in post 48.
bookmark
Thanks for the link. But it was more a comment that I’m betting ACORN is going to be getting money from this.
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