BANKRUPT : Fannie Mae and Freddie Mac
Posted September 6th, 2008 by krolik
output
quote : " Senior Bush administration and Federal Reserve officials called in top executives of Fannie Mae and Freddie Mac on Friday and told them that the government was preparing to place the two companies under federal control, officials and company executives told the New York Times. "
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Fortune Favors the Bold
the crisis may be imminent
Russia to blame :) ?
at the end of the article :
"The companies never lost their access to capital markets where they raise money to support the U.S. housing market, but the biggest buyers of the debt have grown more cautious.
Foreign central banks reduced their holdings of "federal agency" debt in custody at the Federal Reserve in the past week for the seventh week in a row.
Russia has continued reducing its holdings of agency debt, Alexei Ulyukayev, first deputy chairman of Russia's central bank, said on Friday."
No, there's much more at play
One is the bond and hedge funds just couldn't float them anymore; what few could prolong the inevitable for a short while longer wouldn't.
Two is their investments have tanked in the past year.
Three is their revenue has decreased dramatically.
The "reduced their holdings" is typically in a different context, having little to do with FRE/FNM.
Russia couldn't bring down the US economy on its own if it tried. This is something we've done to ourselves, or better yet, government has done to the economy. Russia abandoned nearly all of their dollar-based assets months ago.
That's about as simple as I can break it down w/o alleging fraud across the board (which there is).
More lies being exposed... we need to let people know...
this is blatant government takeover... just like Musolini in Italy, Hitler in Germany, the Communist in Russia.... WAKE UP people!
Mike
"Fire Team for Freedom" and "Revolutionary Business"
visit www.mikeandjake.com
This one isn't a "lie"
FRE and FNM have been insolvent for months, and the PPT can't prop them up anymore. If you want to kick cats about lies, it was the past year's worth of claims by Bernanke, Paulson, et al that there was nothing wrong with either of them.
mm
Fortune Favors the Bold
onr thing to keep in mind about fannie and freddie is that they were created by the government, and in fact were really the start of the housing bubble, by giving mortgages to people who could not afford them, thus starting an inflationary spiral in the housing market. It's not exactly the same as the government nationalizing a company that began private.
Still, this spells bad news for the financial system.
isn't the perfect exemple of
isn't the perfect exemple of an govt created creature going wild in the "free market"... creating the problem