"We must limit the perception that some institutions are either too big or too interconnected to fail," Paulson added. "If we are to do that credibly, we must address the reality that some are."
And WHO is going to be picking up the tab AGAIN?!
"the package, if adopted, would bring the Treasury closer than ever to exposing taxpayers to potentially huge, new liabilities."
How is that breakfast bowl of shit, 'murkns?
Mmmmm, good?
"US tries to rescue mortgage giants; Fannie and Freddie would get billions; Congressional action could come this week" by Stephen Labaton, New York Times News Service | July 14, 2008
WASHINGTON - Alarmed by the sharply eroding confidence in the nation's two largest mortgage finance companies, the Bush administration yesterday asked Congress to approve a sweeping rescue package that would give officials the power to inject billions of federal dollars into the beleaguered companies through investments and loans.
In a separate announcement, the Federal Reserve said that it would make one of its short-term lending programs available to the two companies,
An official said the Fed's lending program was approved at the request of the Treasury, but that it was temporary and would probably end once Congress approved the Treasury's plan. Some officials briefed on the plan said Congress could be asked to extend the total line of credit to the institutions to $300 billion.
It was the second time in four months that the housing crisis had prompted the government to step in and rescue a major financial institution. The administration's plan was disclosed yesterday evening to calm jittery markets overseas and on Wall Street in advance of a debt sale by Freddie Mac this morning.
Officials said that after talking to senior lawmakers through the weekend, they expected that Congress would attach the proposals to a housing bill that could be completed and sent to the White House for approval as early as this week.
Yup, when Bush wants something, on his desk it goes!!!
Yup, attach it to the languishing housing bill that was supposed to help the common folk, and ZOOM!!! Right through it goes, on the desk by the end of the week!!
And this guy's approval is what?
While senior Democratic and Republican officials in successive administrations have for many years repeatedly denied that the trillions of dollars of debt they issued is guaranteed, the package, if adopted, would bring the Treasury closer than ever to exposing taxpayers to potentially huge, new liabilities.
But it is a GOOD THING for YOU, Amurkns!!
Officials seemed to suggest, however, that they had little choice. The failure of just one of the companies could be catastrophic for economies around the world. The companies, known as government-sponsored enterprises, touch nearly half of the nation's mortgages by owning or guaranteeing them, and the debt securities they issue to finance their operations are widely owned by foreign governments, pension funds, mutual funds, big companies, and other large institutional investors.
What is all that CRASHING NOISE I HEAR?!?!
By the way, GLOBALISM SUCKS!!!!
While the Treasury did not specify the size of the packages, officials briefed on the plan said they were told by administration officials that, to be meaningful, Congress should consider extending the line of credit to the two institutions to $300 billion.
That is YOUR MONEY, Americans (as you tear open that foreclosure notice)!!!!
Each company now has a $2.25 billion credit line, set nearly 40 years ago by Congress. At the time, Fannie had about $15 billion in outstanding debt. It now has debt of about $800 billion, while Freddie has about $740 billion. Today the two companies also hold or guarantee mortgages valued at more than $5 trillion, roughly half of the nation's mortgages.
I'm sorry, I just can't pick up that tab, richers.
I've already been tapped out by the endless wars.
Lawmakers said that as part of the plan, the administration called on Congress to raise the national debt limit. And it asked Congress to give the Federal Reserve a role in setting the rules for how big a capital cushion each company must hold.
Oh, yeah, that will help!
Giving the Fed a consulting role in the companies' oversight is seen as yet another way to reassure nervous markets. Initial reaction to the plan by some congressional Democrats was positive.
That's because it is all ONE PARTY NOW!
The EMPIRE and WAR PARTY!
Representative Barney Frank, Democrat of Massachusetts and one of the authors of the housing legislation, said he supported the Treasury proposal. He said he expected the plan would be included in the housing bill, which he said would be approved, sent back to the Senate, and probably land on the president's desk by the end of the week.
Amazing how they can "get right to it" when BUSH WANTS SOMETHING, 'eh, America?
How's that for a big effin' crapper as your breakfast fare?!
On a bleary-eyed Monday, you don't even know what you are eating, do you?
