Freddy And Fanny Are Going To Be Seized Next Week

[TheScotsman]

So, today we get the news that Freddy and fanny are going to be seized by the federal government, and put into conservator-ship.

You know the top executives are going to get a free-walk out the door, with no repercussions, and maybe even get their contracts paid off. It is a shame to see more people tossed out of their homes, abiet homes they can not afford, while the real crooks in the whole mess are the banks willing to make loans to people unable to pay them back... then leave the tax payers stuck with their burning paper sack of bullshite on our porch.

Shareholders are being told they will be wiped out, and the Gov't taking over the debt, standing behind the debt to a great degree. Man, I am so glad I popped-smoke and bailed out of any $ in that crap last year. There are going to be a load of unhappy people Monday, after they look at that 401 summary. It's now going to be a a 101K

This just can't be good in any way.
hello stagflation.

[Bulldog_916]

And this all could have been avoided had even the slightest bit of regulation in the housing markets and banks been exercised. Like energy in my not so humble state of California demonstrated, you deregulate a sector, that sector will fail miserably. This take-over will cost taxpayers such as you and me billions of dollars which could have been used for something so much better. Just like communism, free market capitalism is never perfect because those that run it are not perfect. Greed and lack of a coherent rule structure is what caused this to happen.

Just hope that the next administration (whoever it may be) learns from this and learns to exercise some measures of restraint to the free market.

[D-Rock]

Foreclosed on a home last year, i understand this much too well.
Bought the home for $274,000 and after the APR change (2 years later), it went from $1776 a month to $2850 a month. (Totally out of our budget).

It recently sold for $150,000..

[TheScotsman]

And this all could have been avoided had even the slightest bit of regulation in the housing markets and banks been exercised. Like energy in my not so humble state of California demonstrated, you deregulate a sector, that sector will fail miserably. This take-over will cost taxpayers such as you and me billions of dollars which could have been used for something so much better. Just like communism, free market capitalism is never perfect because those that run it are not perfect. Greed and lack of a coherent rule structure is what caused this to happen.

Just hope that the next administration (whoever it may be) learns from this and learns to exercise some measures of restraint to the free market.

Agreed 100%.
Allowing all those ARMs was just setting people up to fail. I would be very few people were ever told that there was even a possibility of the rate causing more than a minor payment spike, much less doubling in the payment. This mess has roots going back well into king george I's admin. Most analysts were predicting the ARM disaster back in the late '90's. Something (not sure what) should have been done then to regulate the use of "creative" or "exotic" financing (those words scare me.). The overinflated costs of housing was/is creating a situation where the average person can not afford a home without risking the exposure to exotic (should be toxic) financing.

I am not one for are gov't regulation, but in this case, most all of these notes are held by/sold to banks out of the state the loan originated, or the financed property is in. I think such distance makes it impossible for a consumer to strike a deal with the finance company in hard times. Interstate commerce IS a duty of the fed, and they failed big time, now we get to see people loose their homes, and pay for all that over-inflated profit in the pockets of developers/bankers/cities. (You know the cities would rather see every property double in value, just think of the property tax $ they raked in on a 100K home that sells for 200K!)

Now all we hear from either of the buffoons campaigning is how they will "save" the real-estate market, but we get jack for a viable plan to keep people in their houses. Bugger saving the mkt, that is just welfare for banks and developers. Need a plan that freezes rates at 2005 levels, leave those greedy damn mortgage banks eating their profit loss, and talking to their own outsourced phone center in hopes of keeping it all together.

This mess is going to do fuck-all for the the economy, with those losses come more unemployed who won't be able to make a payment, and so goes the disaster. All we get to sit and watch it while Curious George tries to convince us the whole Arab world is out to axe-murder us in our sleep. It's like watching a train wreck in slow motion.

[Brownman18]

its amazing what some people will do for money, i wish everyone the best of luck as this will not be a good week for many unfortunately.. cuz some jackass with the world at his fingertips with the kind of money those CEO's make, yet it still isn't enough apparently, at least they will have to live with the decisions they made, all those commisions on all those faulty mortgage's probably bought them quite a few houses.


Wouldn't shock me if they weren't in the cayman islands already, or bermuda, cuz then they are free from our legal system, while we are royally fucked by theirs lol.......

[Giant Ninja Robot]

This whole mortgage crisis makes me think of the banks as represented in the Grapes of Wrath.

No one person can be held responsible, it's a faceless monster.

"The bank is something more than men, I tell you. It's the monster. Men made it, but they can't control it."
- John Steinbeck, The Grapes of Wrath

I love and hate that quote for the truth represented.

"...when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed."
- John Steinbeck, The Grapes of Wrath

[Brownman18]

This whole mortgage crisis makes me think of the banks as represented in the Grapes of Wrath.

No one person can be held responsible, it's a faceless monster.

"The bank is something more than men, I tell you. It's the monster. Men made it, but they can't control it."
- John Steinbeck, The Grapes of Wrath

I love and hate that quote for the truth represented.

"...when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed."
- John Steinbeck, The Grapes of Wrath

Indeed..

They had to bail out Freddy and Fanny though, since the European Union, Japan & China would have freaked out if they didn't and you would have seen a firesale of all u.s assets worldwide which would cause a panic and destroy the north american economy as well as damage the world economy, same thing with AIG if it does go under, then we are all in alot of trouble as well, it's good that the government is bailing them out as well.

Even though i hate the fact they are doing it those three banks needed to be saved in order to keep the economy afloat although it looks shitty if the above two were to have collapsed then we'd have a world of pretty much mercantilism as the whole capitalist/economic model would crumble.

http://www.bloomberg.com/index.html?Intro=intro3

Only one thing is certain in all this, once the slumps stop only the super-rich will be further enriched as they pick up stocks at bottom dollar prices, while everybody else is stuck holding the losses, i hope though that we can come out of this without any more bullshit.....

[Bulldog_916]

This whole mortgage crisis makes me think of the banks as represented in the Grapes of Wrath.

No one person can be held responsible, it's a faceless monster.

"The bank is something more than men, I tell you. It's the monster. Men made it, but they can't control it."
- John Steinbeck, The Grapes of Wrath

I love and hate that quote for the truth represented.

"...when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed."
- John Steinbeck, The Grapes of Wrath

Indeed..

They had to bail out Freddy and Fanny though, since the European Union, Japan & China would have freaked out if they didn't and you would have seen a firesale of all u.s assets worldwide which would cause a panic and destroy the north american economy as well as damage the world economy, same thing with AIG if it does go under, then we are all in alot of trouble as well, it's good that the government is bailing them out as well.

Even though i hate the fact they are doing it those three banks needed to be saved in order to keep the economy afloat although it looks shitty if the above two were to have collapsed then we'd have a world of pretty much mercantilism as the whole capitalist/economic model would crumble.

http://www.bloomberg.com/index.html?Intro=intro3

Only one thing is certain in all this, once the slumps stop only the super-rich will be further enriched as they pick up stocks at bottom dollar prices, while everybody else is stuck holding the losses, i hope though that we can come out of this without any more bullshit.....

Doubtful at best. I think this is gonna send investors splitting. Part of them are going to go back into commodities because gold and other precious metals are always a good hedge against weak economic conditions. The other part are going to pick up the low priced stocks as soon as they can. Only one part of that equation is going to come out of this winning. The government is going to end up using our tax dollars to try and pull us out of this mess. I dont see it happening. Things are going to have to get a lot worse and we're gonna have to let the market correct itself and apply as much regulation to that process as possible. I see regulation as the stairs that allow the market to keep gaining. The lack of regulation caused the stairs to become elevators. So we had decent economic times (by comparison to now, of course) before and during 2006. Now the elevator chute collapsed and every once in a while we see it trying to hang on but it just cant. Now we have to do the work and take the damn stairs. Stairs cant collapse if they are made of bedrock. We need bedrock regulations, N-O-W.