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It's Official: Taxpayers Stuck with Fannie and Freddie

Fannie, Freddie Capital Concerns Prompt Paulson Plan

Sept. 7 (Bloomberg) -- Treasury Secretary Henry Paulson decided to take control of Fannie Mae and Freddie Mac after a review found the beleaguered mortgage-finance companies used accounting methods that inflated their capital, according to people with knowledge of the decision.

Paulson will hold a press conference at 11 a.m. today in Washington, according to a statement. Morgan Stanley, hired by the Treasury to probe the companies' finances, concluded the accounting, while legal, enabled Freddie, and to a lesser extent Fannie, to overstate the value of their reserves, according to the people who declined to be identified because the findings are confidential.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMX336c2...



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Ben Dover says:

JM
Pass the vaseline please, I'm gona need it. http://www.vaseline.com/

JM

No need to

read here
http://www.dailypaul.com/node/60720

please help spread

"One for all, all for one"

In the long run, yes, gold

In the long run, yes, gold and silver will protect you.

But the liquidity crisis (of which the Freddie/Fannie troubles are a big part) is creating a period of deflation. People and businesses can't get cash (lending by banks has been curtailed) and so, at least for now, cash is king.

Jim Sinclair's

Jim Sinclair's Commentary:

When history looks back at this period and "the Mother of All Financial Crisis" according to former Fed Chairman Paul Volcker, it will NOT be competitive levels of economic activity that valued currencies but the depth of each nation's financial destabilization by OTC derivatives' destructive power.

Good morning, Mr. Sinclair,

The grim reaper mowed down yet another bank Friday afternoon, and the government will be taking over Fannie and Freddie. I truly wish these words of wisdom would be remembered and taken to heart:

"No generation has a right to contract debts greater than can be paid off during the course of its own existence." - George Washington.

“Debt is a prolific mother of folly and of crime” - (Benjamin Disraeli)

“A man in debt is so far a slave “ - (Ralph Waldo Emerson)

Best regards,

CIGA Annette

as for me and my home, we shall worship the LORD

sounds like enron... how

sounds like enron... how soon will these government agency goons go to prison??

as for me and my home, we shall worship the LORD

Sure Does

"The beleaguered mortgage-finance companies used accounting methods that inflated their capital."

I don't care if these companies are "too big to fail." America is too sick and tired to take this crap anymore.

Enormous Criminal Stupidity

"Fannie and Freddie sell billions of dollars of bonds each month to pay maturing debt. As of mid-August the companies had $223 billion of debt to refinance by the end of the quarter."

That means that Fannie and Freddie need an infusion of two and a half billion dollars per day! That's roughly 7 times the ongoing daily cost of the Iraq War on which folks put so much blame for our economic woes.

The US is already borrowing 2 billion a day just to keep the lights on. Now that figure will be more than doubled.

Please remember that Ron Paul asked Congress to distance itself from Fannie and Freddie as far back as July 2002 because he said there was going to be a housing bubble and that the taxpayer would get stuck bailing out Fannie and Freddie. Yes, friends -- just on more example of how Ron tried to save America's ass and our so-called leaders decided to party on, dudes!

Millions

Millions, Billions, 2.3 Trillions.......pretty soon they will be talking real money and maybe then someone will pay attention to RP!

" In Thee O Lord do I put my trust " ~ Psalm 31:1~

" In Thee O Lord do I put my trust " ~ Psalm 31:1~

Buy - Buy - Buy

"Committed To The Eradication Of Poverty Among Patriots"

"Those Who Strive For Excellence Refuse To Fear Mediocrity; They Eradicate It."