oh my.
From bad to worse.
These two government sanctioned ‘franchises’ should not exist. But they shouldn’t be government controlled either.
You know it's Friday night when the Government is seizing control of insolvent financial institutions.
There's just one problem: the Government itself is insolvent, too.
This means, the “government” [read: taxpayer} will become the ultimate guarantor of every garbage loan every bank has on its’ books. Without limit.
Congratulations, everyone. We own all the banks....or, wait...do I have that backwards?
oh lawdy.
OK, have the “formulated a plan”, or are the executing a plan?
The only thing that suggests the plan might be more than just a plan is that they wanted phone numbers for the weekend.
Congratulations...you’ve just been robbed!
Good for all the pigmen bankers who got to dump their trash loans on us taxpayers.
especially raines and gorelick since they cooked the books (raines got fined $2 million but got bonuses in the tens of millions - his insurance paid the fine (but i bet fannie mae paid the insurance premiums))
it may be that congress forced all these bad loans into fannie mae - i am not sure about that - but i recall barney frank wanting to shove bad mortgages into fannie mae - but i bet all the clintonistas did not improve things there
democrats ran these failures - but want to demonize successful big oil - that needs to be made clear to every voter
So who is going to oversee the Conservator??
Senator Chris Dodd, and the Senate Banking Committee??...
In this case it's the conservatives who want to put the companies under Fed control temporarily in order to chop them up and then auction them out to private companies; they are way too big now for anyone to buy them as they currently exist. Fannie and Freddy were partially privatized a couple of decades ago but now conservatives want to go all the way.
The liberals (Barney Frank is one who is quite outspoken about it) wants to leave the situation as is but the Gorelick-Raines corruption has convinced conservatives that something must be done in a dramatic fashion since Fannie Mae-Freddie Mac are now holding back real estate recovery.
When I heard that the FDIC chairman under Reagan was advocating that the government move in so that they can ultimately be privatized I felt it was probably going to happen.
It’s ......... FDIC Friday!
That's a good first step -- and down go some more Community Organizers from their perches.
“Mortgage Conrail”
Is that so whoever is in charge can steal from each at the same time.
News reports as of early Saturday AM say takeover is imminent.
All shareholder equity is likely to be wiped clean, and the stocks go close to zero.
Current quote FNM $7.04 and FRE $5.10
This should be on the breaking news sidebar.
This is more important than showing the RNC viewer numbers.
sh*t
The reason for the failure is the Democrat Congress who have opened the companies up to major risks, but you will never hear that said by anyone with authority to say it.