Freddie and Fannie Fucked - The end of the American dream???????

Discussion in 'Et Cetera, Et Cetera' started by Drifterwood, Jul 11, 2008.

  1. Drifterwood

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    I admit the hyperbole in the headline.

    But seriously, how worried should we be?

    Are we hoisted by our own petard?
     
  2. TurkeyWithaSunburn

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    Fannie Mae
    Freddie Mac

    I'm very worried. :frown1:
     
  3. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    There has been a lot of irresponsible management in both for over a decade. The head of one had to resign because of corruption. He should have gone to jail but got a 7 figure payout. They over-stated (LIED) about earnings to get bigger bonuses, and keep up the prices. There are some good books like The Coming Economic Earthquake and such that you might want to read.
     
  4. atlas23

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    I have not heard much about it but I don't think that they can go bankrupt........
     
  5. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    They can go bankrupt. They are based on mortgages that lenders sold them.
     
  6. Brillig47

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    Apparently the "F"s in Fannie and Freddie signify that they are Federal institutions, and cannot go bankrupt, they have to be bailed out by the government. Watching GW on TV this evening mumbling about it, he couldn't even get their names right. At times like this, the last thing you need is a dumb president. Oh dear, it's gonna be rough, folks.
     
  7. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    It doesn't have to be bailed out by the government. The Congress can let them go belly up. These two are mutual funds. They buy mortgages from lenders. That is part of the reason they are trying to shore up mortgages. They are doing it for banks, mortgage lenders, and these two institutions.
     
  8. Phil Ayesho

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    The invisible hand of the market just slapped us silly...

    What will it take to get republicans to realize that everything they believe is WRONG!?!?!

    Every theory they have on economics and government has now been PROVEN wrong.

    And that they are ALL liars when it comes to smaller government....
    What they SAY they want is one thing... what they DO when in power is take everything they can for themselves and fuck the rest of the world.
     
  9. Phil Ayesho

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    Don'tt worry for any of the republicans that Did this to us all...

    They all have fat pensions and lifetime free healthcare and book and speaking deals and soft cushy leather seats on any board of directors they like... and the one that get indicted?

    They STILL get their pensions and healthcare... and even MORE money as lobbyists.
     
  10. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    You need to point the finger at the american public for being stupid enough to do this to themselves. When you are grown, you are responsible for your own actions. Not to mention, a lot of this decay of Fannie Mae, and Freddie Mac occurred under both admins. Alan Greenspan created the largest financial bubble to ever exist in modern times. Sheesh it's only the beginning.
     
  11. camper joe

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    It's looking more like 1929 all over again. It's my opinion the road going to get bumper before it gets better.
     
  12. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    It does resemble 1929. Americans have spent enormously on credit. Lending institutions were free with loans. The government was irresponsible in letting things get out of hand for well over a decade. The major diff now is the country has an enormous national debt, and we gave away our jobs to foreign nations.
     
  13. Phil Ayesho

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    NO... the American people were suckered by republican promises of smaller government and fiscal responsibility.

    What they GOT was the opposite..
    Republican pushed re-regulation of media ownership put all media in the hands of a few telecoms... and further eroded Americans' access to accurate information and eliminated journalistic investigation ( which in the past led to most other government scandals being broken)

    Greenspan actually warned about the deregulation of money markets, deregulation of trading, deregulation of banking and credit companies.

    And he warned about the offshoring of production- which the republicans did everything in their power to make easier.




    No... sorry, but while I blame Americans for a lot of their indolence and apathy... in this case they were snookered by a coordinated group of neocons whose objective was to pull public finds into private hands as fast and in as great a quantity as they could.
    Karl ROve and his ilk purposely set out to mislead, misinform and distract the American public to facilitate the taking of power and cash.


    Keep in mind one thing... all the money WENT somewhere.
    The money spent on the war was NOT spent in Iraq... it was handed over to people here.
    The huge debt we now face? EVERY dollar of it is in SOMEONE or another's bank account. Borrowed from China, handed directly to Halliburton or Blackwater, and YOU have to pay it back with interest.


    ITS THEFT on the largest imaginable scale... and the media corporations who were party to the theft are the ones who are not reporting it, not investigating it.

    Can we blame American people when they can not even GET the information about what is going on?



    That the Democrats refuse to investigate it just shows that they, too. are far more concerned with the power than they are with the people or the nation.
     
  14. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    Alan Greenspan warned of "irrational exhuberance" in the financial markets, and in the housing market. He did nothing to bring it under control. If he had raised interest rates when the stock market hit 7k, he could have slowed it down, and possibly prevented a bubble. He could have done the same to the housing market.

    I think it's rich that you want to blame republicans for the loss of jobs when the democratic leader Bill Clinton was all for it too. Nobody makes the public buy imports.

    Some people on here are such an anti-Republicans, they'll twist anything to make it look like everything is their fault. They are partially to blame, the democrats are partially to blame but the public itself is at major fault. The power to hold the government accountable is in the public's hands. All they have to do is contact their congressmen, and senators in large numbers, the peeps will vote the way you want. Their number one goal is to be in office. They don't vote the way you want, put them out.
     
  15. B_VinylBoy

    B_VinylBoy New Member

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    I assume you're referring to outsourcing...
    No, we don't blame Bill Clinton because he was for it. However, we can blame those who abuse that privilege and drive the Nation into shambles. Outsourcing doesn't eliminate jobs on our soil... it's the major corporations that exploit it to the extreme that caused the problem. And our current administration saw everything happen and did nothing about it.

    Put the blame where it belongs. If you don't want anti-Republicans trying to twist everything into something negative, then don't do it in return about Democrats.
     
  16. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

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    For your information I vote democrat more than republican.

    Nafta was the beginning of the loss of the jobs. H. Ross Perot was the only candidate to publicly oppose it. He foretold of what was going to happen, and called it the "great sucking sound."

    Corporations moved overseas to be able to supply the cheap goods for which americans clamored. Walmart played a role in it too by putting price squeezes on manufacturers. That's why some of the larger corporations were rated a do not buy on investment sites. Their major source of income is Walmart, and Walmart is constantly putting the squeeze on them.

    The power of the purse, and the government itself belongs in the hands of the voters. People don't like taking responsibility for their own actions.

    I get so sick of people whining when nobody made them go into extreme debt for things they didn't need. It was keeping up with the Joneses that helped drive things to insane levels. I deliver credit card bills that peeps try to hide from their spouses. Some want me to lie for them, and I won't do it.
     
  17. B_VinylBoy

    B_VinylBoy New Member

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    My mistake.

    I agree with you, but only to a certain extent. NAFTA in itself wasn't a bad idea when first implemented. In theory, it would have encouraged countries underneath the agreement to make the best items they could so that everyone else would purchase from them. However, it caused the exact opposite effect and it was due to corporations trying to cut too many corners just to make a profit. Instead of making a better product themselves (which would cost major companies more money to hire proper workers & purchase better materials), they allowed weaker nations that also had a much weaker dollar at the time to set the standards. That way, everyone under the agreement would be obligated to purchase from them. They develop a brand name, then create businesses & hire labor overseas in the very countries that make the now "quality products" so they can save even more money. Because of that, many CEOs of huge corporations make out like bandits for now they were getting more for much less.

    Perot's actions against NAFTA at the time looked more like an attempt to stir fear instead of educate the masses. Because honestly, I don't think Clinton's intention with this agreement was to allow corporations to overly exploit the loopholes for their own pockets. Besides, throughout the rest of the Clinton term our economy was on the rise, unemployment was low and our dollar was strengthening. If NAFTA was so bad, then our country would have been going down the financial toilet since 1994 when it was first instated. Not in 2003/2004, three years after he finished.

    I honestly don't think Americans were begging and pleading for companies to buy nothing but imports. But they would if the American companies weren't doing their part to make a better product. It's natural that most people, especially now, just look for the cheapest item because they simply don't have the cash flow.
     
  18. vince

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    And now... Federal regulators seized IndyMac Bancorp on Friday evening, marking one of the largest bank failures in American history. Over the last week there has been a run on this bank prompted by critical comments by Senator Schumer of New York, questioning it's stability.

    with 32 billion in assets, IndyMac is the largest failure by a financial institution since 1984 when Continental Illnois went down in as percursor to the savings and loan crisis. Remember that one? 500 billion dollars of saving wiped out. (thank you very much Ronald Reagan).

    IndyMac ran into trouble late last year when it was not able to sell off a chunk of its Alt-A mortgage loans, which go to homeowners with credit that is better than the sub-prime category. So the mortage crisis is spreading up the food chain.
     
  19. Drifterwood

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    That's bloody great, that is. Now you're blaming the Welsh. :smile:
     
  20. camper joe

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