"the government is pressing the companies to raise more money to guard against losses but doesn't expect the companies to succeed."
Fucking government LIARS!
"Fannie, Freddie fall on bailout talk; Some fear investors would lose holdings" by Associated Press | August 19, 2008
WASHINGTON - Shares of mortgage finance giants Fannie Mae and Freddie Mac tumbled yesterday amid renewed fears that shareholders will wind up with nothing if the government bails out the troubled companies.
The Treasury Department late last month gained authority to boost Fannie and Freddie through an investment or a loan, should the companies need their finances propped up due to soaring losses from bad mortgages.
The new government power, granted by Congress after the companies' shares plunged to levels not seen since the early 1990s, for several weeks quieted worries that the companies could collapse.
But investors were spooked again after a Barron's magazine article over the weekend, citing an anonymous Bush administration source, reported the government is pressing the companies to raise more money to guard against losses but doesn't expect the companies to succeed.
While we have to hear DAMNABLE LIES COME OUT THEIR MOUTHS!!!
The Barron's report said the government is likely to buy preferred stock in the companies, wiping out common shareholders.
Translation: The GOVERNMENT -- meaning YOU, TAXPAYERS -- will be TAKING OVER the LOSING ENTERPRISE!!
I don't blame you for reaching for that wallet!
In response, Treasury Department spokeswoman Jennifer Zuccarelli said the government has "no intention" of using its authority to invest in Fannie and Freddie but declined to comment further.
God-damn FUCKING LIARS!!!!!!!!!!!!!
Lately, government officials' denials have not soothed investors. "Some of these things become self-fulfilling prophecies because market confidence is so fragile," said Karen Shaw Petrou, managing partner of the consulting firm Federal Financial Analytics in Washington.
Translation: The housing market is in the outhouse!!!!
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