Paulson announces Treasury will shore up Frannie and Freddie
July 14, 2008 by Dusty
After saying they wouldn’t be taking this step late last week, Paulson announced today, on a Sunday no less, that the Treasury will be taking steps to shore up Fannie Mae and Freddie Mac.
I knew it. From the MSNBC writeup:
Secretary Henry Paulson said the government is planning to expand its current line of credit to the two companies should they need to tap it and Treasury could buy equity captial in the companies - if needed. The moves will require congressional approval.
The Federal Reserve saids in a separate statement that it will lend to Fannie Mae and Freddie Mac if they need additional funds.
The plans also seek a “consultative role” for the Federal Reserve in any new regulatory framework eventually decided by Congress for Fannie and Freddie. The Fed’s role would be to weigh in on setting capital requirements for the companies.
Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt. That’s about half the outstanding mortgages in the United States.
But helping the home owners isn’t an option. Fuckers…
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This house of cards is falling down fast.
Bush-o-nomics– If you ignore the economy, it will go away!
These 2 entities- are a pillar of the whole mortgage industry & economic experts say it will crush the housing market for a solid 5 years if these 2 are in serious trouble– which they are.
They are cracking down on how housing loans are approved– so they are making it harder for people to get a home loan. That ought to help the situation– right?
Our oil tycoon “leaders” & the likes of the bizillionaires- the McCains & their 5 mansion collection, don’t understand what all the fuss is about?
Although McSame does like to say *people are hurting & angry*…. that is just his pre programmed rhetoric. They don’t give a shit that people are hurting- as seen by the lack of any assistance to those about to be foreclosed on their mortgages.
The question is not *if*, but how many banks will fail as a result.
The FDIC can’t possibly be able to back up $100,000 per person in a multiple bank failure situation. No way.
In the Indymac bank failure- anything over $100,000 is getting .50 cents on the dollar,
I don’t have that concern (having more than $100,000 in any one account)….
I don’t run in circles of others that are remotely anywhere near that—
but I don’t see how the gvmnt could do a mass bail out when they are currently have a $9.5 trillion dollar debt. The National Debt has continued to increase an average of $1.72 BILLION PER DAY since September 28, 2007!
Bush has brought this country to bankruptcy, although this is not openly acknowledged. There. I said it.
Frans last blog post..War is not the Answer