The government bails out Freddie Mac and Fannie Mae and you are going to pay for it - around $200 billion!
Posted by Blueeyes at 9/8/2008 8:10 PM 
Categories: unbelievable, Finance, Money, Investing, Business, Government, government gone bad, government gone wrong
Categories: unbelievable, Finance, Money, Investing, Business, Government, government gone bad, government gone wrong
That's right, the Fed on Sunday decided to go through with taking over control of both Fannie Mae and Freddie Mac - the two largest mortgage finance companies. This was due to the ever growing credit crunch, housing crisis and dwindling economy. For an election year you just can't have a ever worsening recession. It doesn't look good for either side (Republican or Democrat).
The problem here stems from what Greenspan encouraged while he ruled the fed - liar loans and home ownership to everyone whether you have a job or not or are even a citizen. Mortgage companies were churning out loans at unheard of numbers. They were all banking on the fact that housing values would just keep skyrocketing upward. This eventually caused the housing bubble and like all bubbles it eventually popped.
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Housing values plummeted in areas like California, Nevada and Florida. Some areas like in certain areas of Ohio have become literally war zones as drug dealers, prostitutes, pimps and roving gangs have taken over foreclosed and abandoned houses. In some areas those that could still afford to stay had to leave as conditions were no longer safe.
In other areas you can just see foreclosure sign after foreclosure sign. Its just disheartening to see what happened. George Bush wanted to put more Americans in homes. Now there are fewer Americans in homes then there were 8 or ten years ago. In other words George Bush and Greenspan's housing policies were a total failure! Yet, company executives like Mozilo of Countrywide profited enormously. There were some hearings and such, but nothing really has been done about this. I think it's a pile of crap that these executives are allowed to profit into the hundreds of millions and even billions and that we taxpayers will be the ones to pick up the tab for this.
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Well, watch - the experts are stating it will cost $200 million or more for this buyout. We'll have to see. Oh and by the way, the rich pay on average less than 1% in income taxes so that means the rest of us will be footing this bill.
The problem here stems from what Greenspan encouraged while he ruled the fed - liar loans and home ownership to everyone whether you have a job or not or are even a citizen. Mortgage companies were churning out loans at unheard of numbers. They were all banking on the fact that housing values would just keep skyrocketing upward. This eventually caused the housing bubble and like all bubbles it eventually popped.
Apply for the Discover® Open Road Card today! link goes direct to application
Housing values plummeted in areas like California, Nevada and Florida. Some areas like in certain areas of Ohio have become literally war zones as drug dealers, prostitutes, pimps and roving gangs have taken over foreclosed and abandoned houses. In some areas those that could still afford to stay had to leave as conditions were no longer safe.
In other areas you can just see foreclosure sign after foreclosure sign. Its just disheartening to see what happened. George Bush wanted to put more Americans in homes. Now there are fewer Americans in homes then there were 8 or ten years ago. In other words George Bush and Greenspan's housing policies were a total failure! Yet, company executives like Mozilo of Countrywide profited enormously. There were some hearings and such, but nothing really has been done about this. I think it's a pile of crap that these executives are allowed to profit into the hundreds of millions and even billions and that we taxpayers will be the ones to pick up the tab for this.
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Well, watch - the experts are stating it will cost $200 million or more for this buyout. We'll have to see. Oh and by the way, the rich pay on average less than 1% in income taxes so that means the rest of us will be footing this bill.
Yeah, its just another sign that the economy sucks. I think we are in a recession and that it could dip into a depression - not as bad as the gReat Depression, but halfway between that and a recession. Either case, its going to get pretty bad.
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Yeah, and now they just bailed out AIG last night. When is this crisis and economic disaster going to just implode? It's still heading downward. I expect the dow will hit close to 10,000 before it comes out of this bear market.
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