US Government Takes Over Fannie Mae and Freddie Mac

Freddie and Fanny were not a bank. They were the bank for other banks. Actually the bailout of Fanny and Freddie was actually a good idea. Had they collapsed it might have brought down the entire economy as the mortgages they control are worth hundreds of Trillions. So Uncle Sam was right to bail them out. What worries me however is how this was allowed to happen. This economic crisis seems to suggest that things are going to stay bad or get even worse for the foreseeable future.
 
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mmarsh said:
Freddie and Fanny were not a bank. They were the bank for other banks. Actually the bailout of Fanny and Freddie was actually a good idea. Had they collapsed it might have brought down the entire economy as the mortgages they control are worth hundreds of Trillions. So Uncle Sam was right to bail them out. What worries me however is how this was allowed to happen. This economic crisis seems to suggest that things are going to stay bad or get even worse for the foreseeable future.
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Why did it happen? Capitalism was given free reign!!!
 
I love how being an honest broker that pays their mortgage on time will have to pay higher taxes to bail out these thieves.
 
Team Infidel said:
I love how being an honest broker that pays their mortgage on time will have to pay higher taxes to bail out these thieves.
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I sympathize with that but the truth is if Fannie and Freddie failed the result would have been a chain-reaction economic collapse. Sometimes you just have to deal with the devil

Freddie and Fanny were as much a victim here as the taxpayer because their job is only to insure mortgages not to make the loans themselves. The reason they got in trouble was because of the number of loans failing at once. Nor is it their job to serve as a loan watchdog.

The real culprits are the loan managers for making bad loans, the Fed for being asleep at the wheel, and to a smaller degree the consumer for not being as well informed as they should have been about what kind of loan they could afford.

People like this should NOT be bailed out

http://www.nytimes.com/2008/09/11/business/11lehman.html?_r=1&hp&oref=slogin
 
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Del Boy said:
America the bold ..................


http://www.dailymail.co.uk/money/ar...isive-action-save-Freddie-Mac-Fannie-Mae.html
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But TI is right in principal, it pains me to bail out people whose greed caused this mess. The only reason I approve is because its the best way to limit the damage. Sleazy business practices should be punished.

Its a bit like taking medicine, you don't want to do it, it tastes bad, but ultimately you know it will make things better in the end so you have to do it.
 
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mmarsh said:
But TI is right in principal, it pains me to bail out people whose greed caused this mess. The only reason I approve is because its the best way to limit the damage. Sleazy business practices should be punished.

Its a bit like taking medicine, you don't want to do it, it tastes bad, but ultimately you know it will make things better in the end so you have to do it.
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Well said.

May I add that the person who helped start this mess was, as of earler this year, the economic advisor of John McCain.
 
It seems that the government acted strongly and quickly to do the necessary. That's what they are supposed to do and you surely can't believe that the mess started this year TOG.
 
Del Boy said:
It seems that the government acted strongly and quickly to do the necessary. That's what they are supposed to do and you surely can't believe that the mess started this year TOG.
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Did I say that?

Because if I did, that information is incorrect. It started years ago.
 
But the people who suffer are not the ones who set up sub-prime market and CDO's. It's the average Joe trying to pay off his mortagage who really suffers.
 
the_13th_redneck said:
Greed. What goes around comes around.
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Not always. This is case in point. Ultimately it was taxpayers that got pinched.

But the people that caused the mess, they are rarely punished. Take Carly Fiorina the ex-CEO of Hewlett-Packard. This woman took a very profitable company and drove it into the ground with bad business decision and was caught spying on her employees. (Whom of course sued the pants off HP). Because of this person, the company had to let thousands of workers go, stock holders and investors lost millions and Mrs Fiorina walked away with a $50 Million Severance package.

Last I heard she wanted to be John McCains VP pick. Wasn't hard for McCain to turn her down I imagine.
 
Seems to me as if certain private businesses suddenly favour state control for some reason, why wasn't that the case when their ill gotten gains needed taxing to save for times such as this?
 
Del Boy said:
TOG - maybe I misunderstood this sentence. If so, my apology.:smile:
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Let me try to rephrase it for you.

Phil Gramm pushed heavily for allowing these companies to take these risky business ventures without regulation. After that, he was the Economic advisor on McCain's campaign until he called American citizens "whiners" earlier this year.
 
mmarsh said:
Was this directed at me? If so, I don't see the relation.
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Well the relation is like so. Militias say that they stand for justice and to protect the American people from "evil organizations" (such as the US Gov't, UN, etc.).
But here come these people who are guilty of some pretty bad sh*t and here you have militias playing GI-Joe every weekend who don't lift a finger. If those guys can walk out free and have the militia do nothing, I'd say they're pretty darn useless.
 
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