"Chances are increasing that the U.S. will bail out Fannie Mae and Freddie Mac"
Translation: TAXPAYERS will ONCE AGAIN fork over $$$ for ANOTHER BAILOUT!!!
Talk about a GOVERNMENT of LOOTERS!!!!
As companions, read please see: Ron Paul Revolution Excerpts: Economic Freedom and Ron Paul Revolution Excerpts: Money.
"Fannie, Freddie Tumble on Bailout Concern
(Bloomberg) --Fannie Mae and Freddie Mac, the two biggest providers of financing for U.S. home loans, fell to the lowest levels in 17 years in New York trading after a former Federal Reserve president said the companies may need a government rescue.
Chances are increasing that the U.S. will bail out Fannie Mae and Freddie Mac because they don't have enough capital to weather the worst housing slump since the Great Depression, former St. Louis Federal Reserve President William Poole said in an interview.
Poole, 71, who left the Fed in March, said in the interview yesterday:
"Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer.''
Poole roiled markets in 2003 when he said the government should consider severing its implied backing of Fannie Mae and Freddie Mac and the companies lack the capital to weather financial market disruptions. In 2006 and 2007 he called for lawmakers to strip Fannie Mae and Freddie Mac of their charters.
The companies, created to boost homeownership and promote market stability, own or guarantee about half the $12 trillion in U.S. home loans outstanding. In addition to those obligations, Fannie Mae has $831 billion in company bonds outstanding, while Freddie Mac has $644 billion, according to Bloomberg data.
HOLY CRAP! That is ONE HELL of a BILL!!!!
Senator John McCain, the presumptive Republican presidential nominee, said the federal government can't allow them to fail. Fannie Mae and Freddie Mac "are vital to Americans' ability to own their own homes,'' McCain said in response to a reporter's question during a campaign stop at a diner in Livonia, Michigan. "They will not fail; we cannot allow them to fail.''
Well, you better tell that to bulls*** Ben and his friend, Johnny!
Fair value accounting measures a company's net worth if it had to liquidate all of its assets to repay liabilities. Fannie Mae and Freddie Mac, both of which have the implicit backing of the government, make money by borrowing in the bond market and reinvesting the proceeds in higher-yielding mortgages and securities backed by home loans.
--MORE--"
That means YOU, American taxpayer!
Better open up that wallet.
At least you get a nice bowl of s*** to comfort you, 'eh?
