Government takes control of� Fannie, Freddie

The real question is what is the US take-over of Freddie and Fannie going to cost the US Tax payers?

Bloomberg.com reported on August 20, 2008 that Freddie and Fannie have $223 Billion in debt repayments due in 23 days (September 30, 2008). Who is going to pay that huge current amount due to the debt holders?

Freddie and Fannie owe an additional $1.7 Trillion in "unsecured" debt that will be due for payment.

The above facts bring into question how the US Congressional Budget Office developed an estimate that the US take-over of Freddie and Fannie may cost the US Tax payers:"$25 billion?" Hmm.

This was the only way the government could hold people accountable for their debts. Student Loan default Class 101. Check your bank account tomorrow.

I thought the Republican Party was all about less government involvement?????

Capitalism is another name for greed. Eventually every financial scheme is a ponzoi deal. Some people make lots of money and some people lose their shirts. Say la vie!

This is socialism, and not capitalism. So much for the Republican rhetoric about Free Market. We saw this coming after the Bear Stearns bailout. The responsible citizens are paying for the recklessness of others. The greedy are getting richer and will never be prosecuted while the politicians will spin it like the rest of the issues we face. They waited for the Republican convention to be over before making the announcement on a Sunday. Not the way to promote democracy around the world. The US has lost its respect around the world.

Mykola- "effectively wiping out shareholders' interest".

Is that your quote or has the original article been revised to exclude that reference?

Where is all of this going to take us? Well, I look at it in this way. When you have a government who over spends by billions of dollars a year, spend way over the budget, and then have to sell our national debit to countries over seas because there is not enough money in the country to pay it off. What do you think will happen? Where is the money going to come from to cover all of this? The government? Not hardly, they have already spent well past their budget. Print more of it? And that would help how? Our money is worthless, it`s just colored paper with no backing (gold or silver). I believe it`s going to come down to either one of two things. One being, you know those high taxes we have? You haven`t seen anything yet if that would be the plan. Or two, the government implements what they have been wanting to do all along. Do away with the dollar, and use Amero`s. I hope for neither. I would rather see the Fed done away with, and go back to what the constitution calls for, a government run baking system that is not privatly owned. Do away with interest rates, so you will be paying for a home and not making someone else rich at the same time. We have become slaves to the current system.

Why do you think that when you get behind on payments, the bank says, hey, as long as you can pay the interest, we can wait for a while. Sure they can, they loaned you 0 money and now you have to pay interest on it, real money (when it comes out of your pocket it`s real, it`s money the bank didn`t have in the start). I say 0 money because, there was no money transacted, only on paper and in a computer. Now, with that in mind, and paying only the interest, you are now paying the money they would normally have made on top of the loan. Understand? It`s a win win situation for them, until you file bankruptcy, then they own your house, and it didn`t cost them anything. We have all fell for the game over the years, from the moment the Fed was created, until this very day.

Just remember the Federal Government gets their money. Just ask anyone who owes the IRS or Student Loan defaulters. so don't feel sorry for the Feds. Feel sorry for those that bought in to thes housing bubble and it's sky high inflatable houses.

Conservatorship is (according to treasury) equivalent to chapter 11 bankruptcy. While it's hard to feel sorry for anyone who bought property thinking they'd make a killing and/or who used the runup as an ATM, there are certainly some unfortunate folks who got caught up in a mess not of their making. It's outrageous that the banks and foreign entities will be the winners in this mess. Alan Greenspan, along with his fellow banking (including investment banking) innovators are most to blame; they should bear most of the burdon of the losses. When Alan saw the tech bubble bursting, and feared a second leg down on the stock market back in 2002, he ran the interest rate down to shore up the market, and facilitated the most massive housing bubble in history. He did it willingly, and knowingly. Then, he figures that when that bubble pops, he'd put a depression expert into the federal reserve (Ben Bernanke) to try and avoid a depression. I hope when history is written that all these shisters are thoroughly trashed. They're all criminals as far as I'm concerned; robbing the taxpayers thorough outright treasury fraud and inflationary debauchary of our currency.

What the heck is going on? It seems as though the two bodies in the White Out House are trying to hold the mess they have made together long enough to get out on January 20th. All those big rich execs get to walk??? Isn't anyone going to jail over this mess??? Where are the Neocons who say they're tired of their tax dollars going to support poor people??? How come the government is not bailing out the people losing their homes instead of the financial institutions who created this havoc. This kind of business was created by a Republican Majority Congress who passed these stupid laws to allow this all to happen. Hey Karl Rove!!! What are your thoughts over the mess you helped create??? Why aren't you and Libby in Jail?????

Do not expect the stock market to praise or reward this move... it responds quite negatively to uncertainty, and this represents one giant uncertainty. A 10% to 20% drop in the market is possible. If I could yank my investment retirement funds today I would, otherwise I'm expecting another 1987 debacle. Hold onto to your panties, folks.
As for the usual blame game and finger pointing that's going on this blog site, take a look in the mirror.

One more thought....Now you know why Social Security should not only be left alone but in need of the same type of financial help these loan companies are getting? Excluding the Federal Government takeover that is. With all the monies lost in 401Ks and other pension funds, you should know that SS must be left alone. Never mind taking all the money out and leaving an IOU there. Now it is costing the federal government around 11% interest in the monies borrowed from China. Social Security is at least taking care of itself. If not, the politicians have had a go at the monies and payments are going out faster than they are coming in.

I have reviewed most comments and most have valid points as to the reasons of this crisis. The artificial inflation or deflation of all commodities manipulated by the FED Reserve, greed and self serving elected officials has been going on in this country since it's inception! Overall the citizens of this country are to blame for their blatantly apparent apathy and indifference to any govt. action or inaction, unless it negatively effects them immediately. This including but not limited to the continuous erosion of our constitution and a two party system that has enacted the legislation to ensure their dominance, power and corruption in every elective office in this country. Corporate socialism?? Welcome to the implementation of "the new world order and one world government." Isn't the definition of insanity to repeat the same actions over and over again expecting a different result? Do any of you really expect any change whether a corrupt self serving incompetent govt. takes over a corporation or leaves it to self serving incompetent corrupt corporate officials? I don't have any confidence in change with another election dominated by by two party extremists, just more of the same ol bull@!$%#!

George Carlin said it best 20 years ago, and it still applies today. Just substitute "George W. Bush" for "Ronald Reagan":

See, that's what you gotta remember, this is the Ronald Reagan administration we're talkin' about; these are the LAW AND ORDER PEOPLE! These are the people who are against street crime. They want to put street criminals in jail to make life safer for the BUSINESS criminals! Yeah -- they're against street crime, providing that street isn't Wall Street!

Not anymore " Only in America " .The rules have Changed starting today. I glad I don't OWN(BANK FINANCED,OWN BY FREDDIE OR FANNY) house in America . For those that borrowed their home. It now belongs to the Federal Government. Good luck getting away from them.

It is a tragedy that the tax payers are the ultimate victims of the incompetent managements, board of directors and their ruthless actions. They escape with no penalty- not only no penalty but with the good fortunes the decoited from these institutions. All banks- mis managed to the core- certain institutions - like Enron, Lehman brothers, Bear sterns and more under the cover of free market, and lack of control and incompetent supervision pocketed enormous incentives and we tax payers are to take care of it. The president and legislators turn their back - shame! Many incidents in the past yet they close their wyes. why these executives are put in jail? why those who received bonus under falsified accounting system or loopholes in the accounting guidelines are not asked to return in with penalty or go to jail? Why tax payers has to pay for it while these people enjoy with looted fortune?

Give to me I will show you how to run these institutions with excellence. The people who are selected to take care of it now are from the same boat. You are allowing people who robed to rob again. Shame. I can show you number institutions accounting and financial reporting are fatly to the extreme.

It is a tragedy that the tax payers are the ultimate victims of the incompetent managements, board of directors and their ruthless actions. They escape with no penalty- not only no penalty but with the good fortunes the decoited from these institutions. All banks- mis managed to the core- certain institutions - like Enron, Lehman brothers, Bear sterns and more under the cover of free market, and lack of control and incompetent supervision pocketed enormous incentives and we tax payers are to take care of it. The president and legislators turn their back - shame! Many incidents in the past yet they close their wyes. why these executives are put in jail? why those who received bonus under falsified accounting system or loopholes in the accounting guidelines are not asked to return in with penalty or go to jail? Why tax payers have to pay for it while these people enjoy with looted fortune?

Give to me I will show you how to run these institutions with excellence. The people who are selected to take care of it now, are from the same boat and from the same gang. You are allowing people who robed to rob again. Shame. I can show you number institutions accounting and financial reporting are fatly to the extreme.

Look at the multinationals- under the current tax loopholes, and incompetent compliance supervision escape with 17 billion or more in taxes. No one cares.

It seems that there are a lot of people with the opinion that too many bought homes beyond their means, and that is the root of the current crisis. Based on my own personal experience, I can see how this could be true. I purchased my first home 2 years ago, and unfortunately I went into this transaction with the assumption that everyone had MY best interest in mind,(that's what they kept telling me). Shortly after the closing I found out that I was lied to throughout the entire process, by pretty much everyone involved. I am now the proud owner of a sub-prime, a.r.m., high interest, balloon payment mortgage. I am not a stupid person, just too trusting of my fellow humans, as I think is the case with the average person. It was a learning experience, as I now know that only I have my best interest at heart. I would recommend that anyone who has, or is considering getting, a mortgage, check out WWW.MSFRAUD.ORG, I personally found it very enlightening to what is really going on in the mortgage industry today. It seems that the entire industry is nothing more than immoral, greedy vultures. I would also like to add that I have never been late on a payment, nor am I currently in any financial crises, other than the one that Litton Loan Servicing is trying its best to create for me.

When This takeover is done, everyone that works at these companies should be busted back to minimum wage so the companies can get back on firm ground. How can these companies justify paying the big wigs so much when they are steadily losing money? Makes a lot of sense. Make 'em try to live on minimum wage and their savings for a while. Why bail them out just to keep paying someone huge wages. The government has known these companies were in trouble for a long time now. Wouldn't this situation seem not so dire if they had done this a long time ago? But I guess because most of our money went to fund a BS oil war, no one was looking at the effects it made at home until now. Way to go Fed government. It just makes me wonder why so many lower incomed people were allowed to lose their homes, but now that it's hitting more middle and upper class people, the government wants to help? WTF!

The US Government doesn't care about the American people, only themselves who supposedly "run" it. Our politicians are merely a bunch of 3-year olds arguing in their kindergarten playgrounds, except they get paid the big bucks by us taxpayers. It's not the Dems or Republicans...........it's all politicians. At 64 years old, I am incredibly EMBARASSED by our government. I used to be so proud of this country. Now I wonder how I can QUIT IT. We used to be rewarded for working hard, saving, spending responsibily, investing wisely and maintaining family values. The only way to get ahead today is to be greedy, a thief, dishonest and completely self-centered..............like all our politicians are. You don't even have to be smart, just educated in the ways of my last sentence. That this mortage mess was allowed to occur, in spite of the political understanding of where it was all headed, is proof that those who allowed it only wanted to be in on the "take", not the reprecussions. Once again us taxpayers get to bail out the mess.

I personally own stock in FRE. Since they didn't make this announcement until after market hours on Friday, I called my on-line broker Friday evening as soon as I heard the news and told them I wanted to sell NOW. Of course they said I could enter my order, but that it wouldn't go through until Monday morning. I'm sure the stock price will be ZERO Monday morning............so I get to loose my share value along with my tax dollars to bail out these CROOKS. Boy, America just keeps getting better abd better, doesn't it?

I am so angry I could spit nails. 2 years ago we invested in a fixer upper home to sell and the housing market crashes. Can't sell it, now renting it....and going deeper and deeper in debt. Then we invest in our countries mortgage giant Fannie Mae....$30,000 because Fannie Mae, stupid CEO's kept stating they are fine and will continue to do business. Liars. I am so sick of how business management operates. Crooked. All they care about is themselves. I am so happy that the government wants to save small banking business, Again, screw the small invester, like me.
I also just lost my job last month, unexpectidly
Now, I lost $30,000, I need a strong drink or perhaps an acohol iv

Once again the American taxpayer is going to have to pick up the tab for the Bush Administration's organizing things so that the rich can get richer. The original mortgage meltdown was the direct result of a lack of proper governmental oversight, and which political party and which administration do you think wants to reduce governmental oversight? From the meat industry to energy, from the environment to trade, the conservative mantra has been to get government out of the way and let the market take care of things. The only result has been the a few make more money and the consumer is screwed.

Here's what I still can't understand. The republicans keep arguing for less regulations. We've been hearing it for years, more regulation will cost consumers more money. But look at the facts folks, companies are not going to regulate themselves. In the end the consumers get stuck paying more one way or another, in this case most likely through higher taxes. There is absolutely no way a company is going to pay to write, implement and enforce regulations that they don't have to, it adds nothing to the bottom line. Therefore, the argument that companies can regulate themselves is inherently flawed.

The previous heads of Fannie and Freddie should be held accountable. I know for a fact that they misused company funds for their own aggrandizement. Their salaries were grotesque while other employees stayed the same. They came to work in limos (each in their own limo), totally unnecessary. Prior to their tenure both companies were making money and their stock was healthy. Now anyone holding stock will find it is worthless.

Please stop the party finger pointing. The facts are that both parties got us Here. BOTH PARTIES are the source of the troubles. Americans wake up and vote for somebody else.

Phil Gram got a house and senate bipartisan approval of the partial repeal of the 1933 securities act. You Dems and Repos voted it in. The financial firms of the world jumped on the opening like wolves and 7 years later we have this mess.

Both parties are to blame. Now how are you going to pay for it? Did you check your 401K Friday? Will you check it Monday? You going to have to call them because they will not tell you about the stock losses until next quarter.

Your taxes will go up and for you people living in California this means in 2010 you combined taxes will be 50% of income because you live in the richest state in the Union.

Suck it up America. Get some stones and fire your elected representatives, yeah all of the THEM! starting in NOVEMBER.