Gov is expected to take over Fannie Mae & Freddie Mac

[minator]

I didn't elect this jackass Bernanke, why is he allowed to stick his hand in my pocket yet again??

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

 

[minator]

I didn't elect this jackass Bernanke, why is he allowed to stick his hand in my pocket yet again??

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

 

[minator]

I didn't elect this jackass Bernanke, why is he allowed to stick his hand in my pocket yet again??

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

 

[minator]

I didn't elect this jackass Bernanke, why is he allowed to stick his hand in my pocket yet again??

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

 

[Robert]

Re: Gov is expected to take over Fannie Mae & Freddie Ma

And so, Fannie and Freddie return to the place from whence they came.

This is sort of the typical cycle. Government sees a need and sets up a body to handle the need. They fill it with money. If it looks like it could be a profitable venture it becomes a business. Once the businessmen have sucked all the money out of it, they give it back to the government to refill.

Not too different from the Northern Rock fiasco in the UK. Shareholders retain any profitable or potentially profitable part of the business. Tax-payers get lumped with what's left.

 

[Robert]

Re: Gov is expected to take over Fannie Mae & Freddie Ma

And so, Fannie and Freddie return to the place from whence they came.

This is sort of the typical cycle. Government sees a need and sets up a body to handle the need. They fill it with money. If it looks like it could be a profitable venture it becomes a business. Once the businessmen have sucked all the money out of it, they give it back to the government to refill.

Not too different from the Northern Rock fiasco in the UK. Shareholders retain any profitable or potentially profitable part of the business. Tax-payers get lumped with what's left.

 

[Robert]

Re: Gov is expected to take over Fannie Mae & Freddie Ma

And so, Fannie and Freddie return to the place from whence they came.

This is sort of the typical cycle. Government sees a need and sets up a body to handle the need. They fill it with money. If it looks like it could be a profitable venture it becomes a business. Once the businessmen have sucked all the money out of it, they give it back to the government to refill.

Not too different from the Northern Rock fiasco in the UK. Shareholders retain any profitable or potentially profitable part of the business. Tax-payers get lumped with what's left.

 

[Robert]

Re: Gov is expected to take over Fannie Mae & Freddie Ma

And so, Fannie and Freddie return to the place from whence they came.

This is sort of the typical cycle. Government sees a need and sets up a body to handle the need. They fill it with money. If it looks like it could be a profitable venture it becomes a business. Once the businessmen have sucked all the money out of it, they give it back to the government to refill.

Not too different from the Northern Rock fiasco in the UK. Shareholders retain any profitable or potentially profitable part of the business. Tax-payers get lumped with what's left.

 

[Robert]

Re: Gov is expected to take over Fannie Mae & Freddie Ma

And so, Fannie and Freddie return to the place from whence they came.

This is sort of the typical cycle. Government sees a need and sets up a body to handle the need. They fill it with money. If it looks like it could be a profitable venture it becomes a business. Once the businessmen have sucked all the money out of it, they give it back to the government to refill.

Not too different from the Northern Rock fiasco in the UK. Shareholders retain any profitable or potentially profitable part of the business. Tax-payers get lumped with what's left.

 

[Robert]

Re: Gov is expected to take over Fannie Mae & Freddie Ma

And so, Fannie and Freddie return to the place from whence they came.

This is sort of the typical cycle. Government sees a need and sets up a body to handle the need. They fill it with money. If it looks like it could be a profitable venture it becomes a business. Once the businessmen have sucked all the money out of it, they give it back to the government to refill.

Not too different from the Northern Rock fiasco in the UK. Shareholders retain any profitable or potentially profitable part of the business. Tax-payers get lumped with what's left.

 

[redrumloa]

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

All parties involved have already caused crippling damage to the economy.

 

[redrumloa]

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

All parties involved have already caused crippling damage to the economy.

 

[redrumloa]

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

All parties involved have already caused crippling damage to the economy.

 

[redrumloa]

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

All parties involved have already caused crippling damage to the economy.

 

[redrumloa]

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

All parties involved have already caused crippling damage to the economy.

 

[redrumloa]

Having the companies that control half the countries housing would cause utter devastation to the US economy. You would rather that happened?

All parties involved have already caused crippling damage to the economy.

 

[ilwrath]

All parties involved have already caused crippling damage to the economy.

They sure have, but NOTHING like what I understand would happen should they be allowed to collapse completely.

I don't fully comprehend the monetary system in the US (I've got a lot more of it figured out than the common Joe, but not as much as I'd like to...), but I think I understand the general cycle.

Without Fannie and Freddy around to gobble up all those toxic bad loans, that loss is going to come straight out of the real economy. There isn't enough money in the system for that to possibly have a good outcome. We're talking 50% of all home loans here. That is an astounding amount of money! To have that loss hit the real economy would be pure chaos. Major bank run and massive liquidity crisis ensues. Cue a likely complete economic collapse, and possibilities as wild as complete US bankruptcy or governmental/systemic upheaval.

With Fannie and Freddy under the Fed, it'll almost work out like all that money never existed. You have the Fed pump a bunch of funny money into the system to fill that void of toxic bad loans, the money subsequently disappears (those loans and monetary instruments are worthless...), and the rest of the system ends up fairly untouched. Hopefully.

Sure, there will be some (probably significant) inflation damage... Sure, the housing market "correction" will hurt... Sure, we'll piss off some (most? all?) foreign nations... But I'd still rather see that to avoid the chance of a complete collapse.

 

[ilwrath]

All parties involved have already caused crippling damage to the economy.

They sure have, but NOTHING like what I understand would happen should they be allowed to collapse completely.

I don't fully comprehend the monetary system in the US (I've got a lot more of it figured out than the common Joe, but not as much as I'd like to...), but I think I understand the general cycle.

Without Fannie and Freddy around to gobble up all those toxic bad loans, that loss is going to come straight out of the real economy. There isn't enough money in the system for that to possibly have a good outcome. We're talking 50% of all home loans here. That is an astounding amount of money! To have that loss hit the real economy would be pure chaos. Major bank run and massive liquidity crisis ensues. Cue a likely complete economic collapse, and possibilities as wild as complete US bankruptcy or governmental/systemic upheaval.

With Fannie and Freddy under the Fed, it'll almost work out like all that money never existed. You have the Fed pump a bunch of funny money into the system to fill that void of toxic bad loans, the money subsequently disappears (those loans and monetary instruments are worthless...), and the rest of the system ends up fairly untouched. Hopefully.

Sure, there will be some (probably significant) inflation damage... Sure, the housing market "correction" will hurt... Sure, we'll piss off some (most? all?) foreign nations... But I'd still rather see that to avoid the chance of a complete collapse.

 

[ilwrath]

All parties involved have already caused crippling damage to the economy.

They sure have, but NOTHING like what I understand would happen should they be allowed to collapse completely.

I don't fully comprehend the monetary system in the US (I've got a lot more of it figured out than the common Joe, but not as much as I'd like to...), but I think I understand the general cycle.

Without Fannie and Freddy around to gobble up all those toxic bad loans, that loss is going to come straight out of the real economy. There isn't enough money in the system for that to possibly have a good outcome. We're talking 50% of all home loans here. That is an astounding amount of money! To have that loss hit the real economy would be pure chaos. Major bank run and massive liquidity crisis ensues. Cue a likely complete economic collapse, and possibilities as wild as complete US bankruptcy or governmental/systemic upheaval.

With Fannie and Freddy under the Fed, it'll almost work out like all that money never existed. You have the Fed pump a bunch of funny money into the system to fill that void of toxic bad loans, the money subsequently disappears (those loans and monetary instruments are worthless...), and the rest of the system ends up fairly untouched. Hopefully.

Sure, there will be some (probably significant) inflation damage... Sure, the housing market "correction" will hurt... Sure, we'll piss off some (most? all?) foreign nations... But I'd still rather see that to avoid the chance of a complete collapse.

 

[ilwrath]

All parties involved have already caused crippling damage to the economy.

They sure have, but NOTHING like what I understand would happen should they be allowed to collapse completely.

I don't fully comprehend the monetary system in the US (I've got a lot more of it figured out than the common Joe, but not as much as I'd like to...), but I think I understand the general cycle.

Without Fannie and Freddy around to gobble up all those toxic bad loans, that loss is going to come straight out of the real economy. There isn't enough money in the system for that to possibly have a good outcome. We're talking 50% of all home loans here. That is an astounding amount of money! To have that loss hit the real economy would be pure chaos. Major bank run and massive liquidity crisis ensues. Cue a likely complete economic collapse, and possibilities as wild as complete US bankruptcy or governmental/systemic upheaval.

With Fannie and Freddy under the Fed, it'll almost work out like all that money never existed. You have the Fed pump a bunch of funny money into the system to fill that void of toxic bad loans, the money subsequently disappears (those loans and monetary instruments are worthless...), and the rest of the system ends up fairly untouched. Hopefully.

Sure, there will be some (probably significant) inflation damage... Sure, the housing market "correction" will hurt... Sure, we'll piss off some (most? all?) foreign nations... But I'd still rather see that to avoid the chance of a complete collapse.