U.S. rescues Fannie, Freddie

marketwatch.com ^ | 7/13/08

[Sleeping Freeper]

U.S. rescues Fannie, Freddie Treasury Department raises credit line, has power to buy companies' stock. Fed will open discount-lending to two government-sponsored mortgage lenders. Paulson calls for new regulatory controls.

[charles m]

Futures shot UP on the news. It baffles me.

Futures go up because we are bailing these companies out, which means more INFLATION. Dollar inflation means higher oil futures and gold as hedges. This has nothing to do with Iran and everything to do with the devaluation of our currency from Fed policies.

[Gondring]

People practice one entry accounting. They pretend every raise they ever got was merited as a real increase, but the nasty financiers and gubmint went and mucked everything up and took half of it back through inflation and what-not. Nobody ever thinks the first part was about as much due to more money sloshing around as to anything they did themselves.

Give me a break. If that were the case, then experienced folks would be paid nearly the same as entry level, as the market would price experience out.

Fact is, the market will set both wage levels. Besides, even if raises are half from increased money supply, the money supply increase not only gives the raise, but takes it away via the dollar being worth less.

Nice try at the sleight of hand, but the fact is, responsible people are forced to pick up the tab for the irresponsible.

[AndyJackson]

Why not use the audited financials in their 10-K? That's a public document, right on the web. For free.

I am sure hoping you have a missing sarcasm tag.

[RockinRight]

Got a better idea?

Perhaps 60% unemployment and millions out of work, but a strong dollar, is better?

Sheesh.

[RockinRight]

Can’t disagree with either of you there.

[AndyJackson]

Futures will go up until Iran's nuclear program...

I think the futures in question are stock index futures (SPX) and not oil futures.

[TruthConquers]

We will have 60% unemployment and the dollar will be trash in the next year or so.

It is too late for a better idea. This problem has been in the making since FDR. Deal with it. We will have to whether we like it or not.

[RockinRight]

Oil goes up on any excuse now. If a Saudi prince takes a shit, oil goes up.

[RockinRight]

Again, GOT A BETTER IDEA?

You don’t have one, or you’d have given it.

[Mariner]

These entities should never have existed in the first place. Now that they do, I see little option esides bailing them out...and squandering the wealth of the nation in the process.

If this ONLY amounts to the Fed lending money and taking their toxic collateral, it will only cost us about $2trillion in inflation (that's spread across EVERYONE). This is the best possible outcome.

If the Taxpayer actually has to make up the difference between "mark to market" and "mark to model", it'll cost us $2-$3trillion directly...every TAXPAYER, which is less than 1/2 the population.

[TruthConquers]

http://www.freerepublic.com/focus/f-news/2031535/posts

Take a look and tell me what would fix this any time soon?”

[RockinRight]

That’s the problem with the “well as a taxpayer I don’t wanna bail out such and such bank” argument.

The economic consequences in this case of letting a Fannie Mae fail, are FAR WORSE for most people’s wealth.

It sucks, but it’s the truth.

[RockinRight]

I can tell ya one thing...if the GOP were smart, they’d publicly expose the Democrats responsible.

[cva66snipe]

I can tell ya one thing...if the GOP were smart, they’d publicly expose the Democrats responsible.

Well the GOP isn't smart. It's likely every bit as corrupt in this as the DEMs. Which is why we need a new political party to represent the Conservative citizens. A party which platform is centered in the Constitution and not protecting the corporate board rooms profit margins.

[MichiganConservative]

...a new political party to represent the Conservative citizens.

How many of them are there, really? Maybe it is time for secession.

Arm yourself.

[dfwgator]

I can tell ya one thing...if the GOP were smart

And if my aunt had cajones, she'd be my uncle.

[TruthConquers]

As far as I can tell BY THEIR OWN ACTIONS, the GOP is in bed with the demoncrats. ( yelling is reserved for the GOP itself, not you personally)

They aren’t smart because they don’t want to upset their apple cart anymore than the dems do. The whole system is corrupt and we will pay for it. Unemployment, Amero, you name it. A welfare state (used to buy votes) is reliant on an inflated fiat money. But all fiat money gets destroyed by the greed the eventually gets unleashed by politicians. I hope it does not come to this now. But the possibilities are aligning themselves into that probability.

[charles m]

It has all sorts of competitors, but we refuse to use them. We refuse to develop oil, either. The green left wants the west to deindustrialize for the sake of Gaia, and the red left wants to destroy capitalism for the sake of socialism. And everyone is letting them, so they will.

Let's quit blaming the left for a change, the right ain't doing much either to help. We don't need Barack to bring us socialism, it's already here in the 2nd term of Bush.

[TruthConquers]

On second thought I do have a better idea, but it is personal one, not one to fix this increasing fiat money problem.

Own gold, silver and get out of US dollars. Don’t own them.

That is the best you can do.

[Lurkus Maximus]

That’s a mighty big if