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Cost of US loans bail-out emerging By Krishna Guha in Washington and Michael Mackenzie and Nicole Bullock in New York Published: September 9 2008 15:57 | Last updated: September 9 2008 21:27 The US on Tuesday began to face the financial consequences of the bail-out of Fannie Mae and Freddie Mac after Congress’s budget watchdog said the housing giants’ operations should sit on the government’s books and the cost of insuring against a US default started to rise. /snip The price of credit default swaps on five-year US government debt rose to a record 17.5 basis points in early trading,...

Buckle Up With transparency and truth in short supply, caution is warranted BY TONY ALLISON Investor Jim Rogers minced few words, as usual, when asked about the U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac. “It is an unmitigated disaster”, said Rogers. “Taxpayers will be saddled with debt if Congress approves (U.S. Treasury Secretary) Henry Paulson's request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac.” "These companies were going to go bankrupt if they hadn't stepped in to do something, and they should've gone bankrupt with all of...

Home | Market Monitor | Market WrapUp | Storm Watch | Sitemap | About Us | Contact Us | Disclaimer | Privacy Statement THE FINANCIAL TSUNAMI The Next Big Wave is Breaking Fannie Mae Freddic Mac and US Mortgage Debt by F. William Engdahl July 15, 2008 The announcement by US Treasury Secretary Henry Paulson together with Federal Reserve chief Bernanke, that the US Government will bailout the two largest guarantors of housing mortgage debt—the Fannie Mae and Freddie Mac—far from calming financial markets, has confirmed what we have said repeatedly in this space: The Financial Tsunami which began in...