Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis.
At a 2004 hearing see Democrat after Democrat covering up and attacking the regulations to protect Fannie Mae and Freddie Mac (their Cash Cows) that are now destroying our economy because the Democrats let them cheat.
Duration : 0:8:37
http://investing.meetup.com/21 - New York Investing meetup organizer Daryl Montgomery discusses the U.S. government bailout of Fannie Mae and Freddie Mac. The New York Investing meetup is a group of 1800 independent traders and investors that provides investment education and analysis to the public. We also have an associated blog, “The Helicopter Economics Investing Guide” at: http://nyinvestingmeetup.blogspot.com
Duration : 0:5:17
President Bush is calling for a rescue package to aid embattled Fannie Mae and Freddie Mac, the two mortgage giants who together finance half the nation’s home loans. Priya David reports.
Duration : 0:5:19
Too Big to Fail, I keep hearing that phrase so often when referencing the possible collapse of Freddie Mac and Fannie Mae, despite their stock losing 87% and 79% of their value since last year.
Anyhow, some of the reports from various news outlets nearly gave me a heart-attack, I continued searching and reading for related articles, such as the excerpt from a Wall Street Journal article (1.) which states ” The liabilities of Fan and Fred are currently not on this U.S. balance sheet. But one danger is a run on the debt of either company, putting pressure on the Treasury and the Federal Reserve to publicly guarantee that debt to prevent a systemic Financial Collapse”. The commentator of the financial times states that the firms are “too big to fail”, but if they did, according to a Wall street Journal article (1.) the amount that may be burdened upon the civilian tax base is “5 trillion”, not Billion but Trillion with a Capital “T”.
Strangely, William Poole a former St. Louis Federal Reserve President has publicly lashed out on the speculation of a bail out, he states in a Bloomberg article(2 ) ” 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”( in reference to Freddie Mac and Fannie Mae).
Will there be a bail out? Or are both Fannie Mae and Freddie Mac too big to fail?
Well Both Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson seem to believe something great is within the mist, so much to the extent, that they are asking for congress for new regulatory powers, obviously they know something is coming up that will require drastic action. So what may be that action, after reading an article from the Mercury News (3) one can easily speculate. The articles quotes Treasury Secretary Paulson as saying ” It is clear that some institutions , if they fail , can have systemic impact, However financial players need to be disciplined in managing risk and not expect the government to fly to the rescue” . Paulson also stated ” For market discipline to effectively constrain risk, financial institutions must be allowed to fail”
It would seen that Paulson and Bernanke may simply allow these huge firms go under, but in another statement within the same article (3.) they stated ” new tools are needed for ensuring an orderly liquidation of a systemically important securities firm that is on the verge of bankruptcy”.
Rather confusing, whether they bail them out, or allow them to go under, Paulson and Bernanke have already polished the floors, in the event that either scenario should fall on the floor, both Paulson and Bernanke would claim plausible deniability. Essentially they are cleaning up after themselves beforehand.
Whatever may happen, the size of these firms will have a dramatic impact on the broader economy, regardless in which way it may sway and fall.
Enjoy !!!!!!!
1. “Price of Fannie Mae” July 10, 2008 (Pg.A14) The Wall Street Journal (Online)
WSJ.com
http://online.wsj.com/article/SB121565255349741343.html?mod=rss_opinion_main
2. Kopecki , Dawn “Fannie, Freddie Insolvent after losses , Poole says Update 1″ July 10, 2008 Bloomberg.com
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a7NPAG.LEjHQ
3.Aversa, Jeannine ” Bernanke : Empower Financial Regulators ” July 10, 2008
Mercury News.com (Associated Press — Source)
http://www.mercurynews.com/breakingnews/ci_9838817
Just as I was finishing my commentary on the video with related articles, I came upon another article from the New York Times (4) titled “U.S. weighs takeover of Two mortgage giants”. Anyhow, the article mentions how Freddie Mac and Fannie Mae may “default on their loans “(No surprise there) and that the government may purchase the two firms under a “conservatorship”. Anyhow I have too much of a migraine to explain it, you are going to have to do a bit a reading for yourself — Enjoy!!!!
4.Labaton, Stephen and Weisman, Steven “U.S. weighs takeover of Two mortgage giants” July 11, 2008 New York Times NYTIMES.com
http://www.nytimes.com/2008/07/11/business/11fannie.html?sq=U.S.%20Weighs%20Takeover%20of%20Two%20Mortgage%20Giant&st=nyt&adxnnl=1&scp=1&adxnnlx=1215766899-2C63J5sHW1HuHpsV0CUpSg
Video: John Authers “Short View” July 10, 2008 FT.com
Duration : 0:2:8
The story of Fannie Mae, as narrated by The Band
Duration : 0:3:45
At a press conference, Sen. Chris Dodd (D-CT), chairman of the Senate Banking Committee, is asked about the home loans he got through Countrywide.
A reporter asks if he will keep the loans and Dodd mentions he doesn’t know what the mortgage rates are.
Note that this is a day before he planned to bring a bill to overhaul mortgage companies Freddie Mac and Fannie Mae.
Duration : 0:0:21
Courtesy of the LewRockwell.com —
Watch the others stumble and stammer as they try desperately to perform the media’s function of defending the state and the status quo against Rogers’ relentless attack
Duration : 0:8:37
Crisi del settore immobiliare: intervento della Fed per sostenere la Fannie Mae e la Freddie Mac, le principali società americane nel settore dei mutui che sono a rischio fallimento.
Duration : 0:5:16
PlusFed, Treasury to Help Fannie Mae and Freddie MacFed, Treasury to Help Fannie Mae and Freddie MacThe Associated PressThe Federal Reserve and the Treasury announced steps Sunday to shore up mortgage giants Fannie Mae and Freddie Mac, whose shares have plunged as losses from their mortgage holdings threatened their financial survival. (July 13)[Notes:ANCHOR VOICE] The Federal Reserve and Treasury are extending a couple of life lines to Fannie Mae and Freddie Mac.Shares of the mortgage companies have plunged recently and their losses have threatened their financial survival.Treasury Secretary Henry Paulson says he plans to ask Congress to increase Fannie and Freddie’s credit limits and, if necessary, make equity investments in the companies.((PAULSON SOT))Secretary Paulson says he’s also looking to consult the Fed about any new rules Congress proposes for the lenders.The Fed’s role would be to weigh in on setting capital requirements for the companies. In a separate plan…the Fed says it’s given the Federal Reserve Bank of New York the green light to lend to the 2 mortgage companies if they need it. The mortgage financiers would pay 2 point 25 percent for any borrowed funds. That’s the same interest rate given to commercial banks and Wall Street firms.Ben Bernanke and company say that move should help Fannie Mae and Freddie Mac quote- promote the availability of home mortgage credit during a period of stress in financial markets.The Treasury and Fed plans are also meant to let nervous investors around the world know the U-S government is willing to do everything it can to prevent further problems in the credit markets.
Duration : 0:1:31
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