Posted on 09/09/2008 5:08:40 PM PDT by TigerLikesRooster
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, according to CMA Datavision. This means that it now costs $17,500 a year to buy insurance on $10m of US government debt.
/snip
the price suggests the market believes the US government is more likely to default on its obligations than some other industrialised countries.
(Excerpt) Read more at ft.com ...
Ping!
Nothing like Business Socialism to wreck a great nation...
Taxes and tax rates are at all time high. I feel with direct and known taxes, coupled with doubled prices from the cost of producer taxes folded into the cost of goods or service, the effective tax rate is 75%.
I’m not sure, but is the US borrowing to pay back interest on past borrowing? I think it is. Kind of like using one credit card to pay the monthly on another.
What about Private Mortgage Insurance, all these low down mortgages (as a result of the last savings and loan scandal)have had to pay this fee, so why the bail out who is the insurer, can anyone answer this?
F & F must now be considered part of the public sector. This mean the entire $ 5 + Trillion must be accounted for in great detail. As if this mess would get shoveled under the rug ! The White House must be going crazy trying to play catch up. Our national debt doubled over the weekend.
It's not the Reagan Era any longer. This is a New World Order. Live with it: Insanity rules in D.C.
At the end of the day, we are going to pay for this mess. We are going to pay, and pay, and pay, and pay, and pay...
As if this mess would get shoveled under the rug !
The mess will be shoveled onto our plates, and we will be told to eat it. Some (in both parties) will even dare to say that it's good for us...that it's medicine!
It's not the Reagan Era any longer. This is a New World Order. Live with it: Insanity rules in D.C.
No Government is Too Big to Fail, the U.S. included.
Let’s all thank the Government for selling us out into debt slavery!
GenX/GenY/GenReagan ping.
LOL!
Just like they gave AAA ratings to Mortgage-Backed Securities and Collateralized Debt Obligation securities!
You have no idea what you're talking about, and you have the nerve to call for better accounting?
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details and previous articles.
The Congressional Budget Office said the Fannie Mae/Freddie Mac bailout has to be included in the Federal Budget...
No Government is Too Big to Fail? What about the USSR?
This means that it now costs $17,500 a year to buy insurance on $10m of US government debt.
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Seems the entire CDS industry is just plain insurance fraud, from top to bottom.
that comes out to ....
175/yr 100,000
and who has oversight on this industry? ‘Cause if havn’t seen anyone go to jail from this industry sector yet.
How much do they have to keep on hand, what percentage of the amount they insure?
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