Joined: Oct 25, 2004 Posts: 1331 Location: Stalag 13
Posted: Sun Jul 13, 2008 8:55 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
As of 2008, Fannie Mae and Freddie Mac own or guarantee about $6 trillion in the mortgage market of the United States (half of all mortgages in the US). Can the Federal Reserve really print up or create $6 trillion without destroying the US dollar? Time to go shopping for groceries:
_________________ Now why didn't I think of that?
Last edited by Hogan on Sun Jul 13, 2008 9:02 pm; edited 1 time in total
Posted: Sun Jul 13, 2008 8:56 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
The day the dollar die
Gonna be better
The day the dollar die
I won't need no pockets
The day the dollar die
Don't have to be frettin'
The day the dollar die
The day the dollar die
It's gonna be nice
The day the dollar die
Just you wait and see
The day this here dollar die
There be no more inflation
The day the dollar die
Posted: Sun Jul 13, 2008 9:14 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
Next in line for a gov't handout is: the dollar
The New York Board of Trade's dollar index also fell to a 2-1/2-month low at 71.795, posting its largest daily fall in more than a month.
Analysts said the dollar is trading at such perilous levels that it could spur government intervention to support it.
"There's concern that the FX market is starting to look disorderly, which means the possibility of intervention is creeping up a bit," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. link
Get in line G-man...I was here first!
Posted: Sun Jul 13, 2008 9:15 pm Post subject: Re: Fannie, Freddie Losses Make Them `Insolvent,' Ex-Fed Pre
smallpoxgirl wrote:
As long as you're renting, you're a consumer not an owner. Consumers are utterly dependent on owners for their continued existence.
I hear this argument a lot, but if you view renting as a "service," much like a power, gas, phone or cable company, it makes some sense. Do you own your own gas company? Or are you "utterly dependent" on external inputs, owned by others, to maintain your residence in some livable fashion? Unless you're off the grid completely, your argument has little merit. Anyways, there are far more industrious places to put capital than to sink it into suburban real estate, but in your scenario of a farmstead, it certainly make a lot of sense to own. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Joined: Oct 25, 2004 Posts: 1331 Location: Stalag 13
Posted: Sun Jul 13, 2008 9:26 pm Post subject: Re: Fannie, Freddie Losses Make Them `Insolvent,' Ex-Fed Pre
Hmm. I have to disagree, smallpoxgirl. This whole housing disaster was caused by people viewing home ownership as an investment rather than a place to live, and renting as throwing money away. Overall, in the long run it is usually cheaper to rent than own (depending on location), especially when factoring in maintenance, repairs, property taxes, interest payments, etc.
But putting a double-wide mobile home on some land might be a very smart move financially. _________________ Now why didn't I think of that?
Posted: Sun Jul 13, 2008 9:37 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
MC2 wrote:
ehh... just making the "implicit explicit," as puh-puh-puh Paulson said tonight....
Hey, I'm just glad Paulson is a strong-dollar man. He said so himself. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Posted: Sun Jul 13, 2008 9:50 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
I can't find the cite, but I read in the last 6 hours that part of the plan is to provide legislation for the Treasury to directly buy ownership (stock/equity) of F and/or F if needed.
So let's cut the bullsh-t and get right to it, shall we?
Every other provision is nonsense that will not work (access to Fed window, new regs, whatever). They're thrown in only to disguise the real intent, which is an eventual government takeover.
That, in any other country in the world, would be called, "nationalization."
Here in America, however, we're going to call it a "conservatorship" or some other silly title to try to disguise the obvious truth, which is that we are now on the verge of implementing a Socialist takeover of 50% of the mortgage market.
Because the Treasury, which is the U.S. government, is the entity that is going to do this, what this amounts to is the use of the "full faith and credit of the U.S." to nationalize 1/2 of the mortgage industry in the United States.
The bad Fannie and Freddie debt, in effect, will be "monetized", which is a trendy way of saying, "we will print more money to pay for the bad debts that the government is assuming with the nationalization."
Next stop, hyper inflation. _________________ Massive Human Dieoff must occur as a result of Peak Oil. Many more than half will die. It will occur everywhere, including where you live. If you fail to recognize this, then your odds of living move toward the "going to die" group.
Joined: Oct 23, 2004 Posts: 5905 Location: New Jersey
Posted: Sun Jul 13, 2008 10:02 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
Cashmere wrote:
I can't find the cite, but I read in the last 6 hours that part of the plan is to provide legislation for the Treasury to directly buy ownership (stock/equity) of F and/or F if needed.
So let's cut the bullsh-t and get right to it, shall we?
Every other provision is nonsense that will not work (access to Fed window, new regs, whatever). They're thrown in only to disguise the real intent, which is an eventual government takeover.
That, in any other country in the world, would be called, "nationalization."
Here in America, however, we're going to call it a "conservatorship" or some other silly title to try to disguise the obvious truth, which is that we are now on the verge of implementing a Socialist takeover of 50% of the mortgage market.
Because the Treasury, which is the U.S. government, is the entity that is going to do this, what this amounts to is the use of the "full faith and credit of the U.S." to nationalize 1/2 of the mortgage industry in the United States.
The bad Fannie and Freddie debt, in effect, will be "monetized", which is a trendy way of saying, "we will print more money to pay for the bad debts that the government is assuming with the nationalization." Next stop, hyper inflation.
Well put.
In the end, which is coming, private investors will be forced out to make way for the nationalization of F & F.
Let's also not forget that F & F have trillions in off-balance sheet derivatives. So with the Fed literally taking on hundreds of billions $s in derivatives before, and now the Treasury taking on trillions $, the value of the dollar, at best, it somewhat uncertain and even nebulous. _________________ It's already over, now it's just a matter of adjusting.
Posted: Sun Jul 13, 2008 10:11 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
Cashmere wrote:
I can't find the cite, but I read in the last 6 hours that part of the plan is to provide legislation for the Treasury to directly buy ownership (stock/equity) of F and/or F if needed.
So let's cut the bullsh-t and get right to it, shall we?
Every other provision is nonsense that will not work (access to Fed window, new regs, whatever). They're thrown in only to disguise the real intent, which is an eventual government takeover.
Because the Treasury, which is the U.S. government, is the entity that is going to do this, what this amounts to is the use of the "full faith and credit of the U.S." to nationalize 1/2 of the mortgage industry in the United States.
The bad Fannie and Freddie debt, in effect, will be "monetized", which is a trendy way of saying, "we will print more money to pay for the bad debts that the government is assuming with the nationalization." Next stop, hyper inflation.
Yup they either extend loans, guarantee debt (basically converting the bad debt to treasury bonds), or buy up the bad debt outright with newly created money. All amounts to the same thing, nationalization and a sinking currency. _________________ Just look at us. Everything is backwards; everything is upside down. Doctors destory health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the major media destroy information and religions destroy spirituality.
Posted: Sun Jul 13, 2008 11:00 pm Post subject: Re: Federal Reserve announces Fannie and Freddie bail-out
The Feds can print up 5 trillion in a jiffy. No recession around here, nope, all is well. Markets will be going up soon as the Gov't will not allow anyone to buy short! Ha ha ha ha ha.
Posted: Sun Jul 13, 2008 11:33 pm Post subject: Re: Fannie, Freddie Losses Make Them `Insolvent,' Ex-Fed Pre
Property ownership/rights aren't gonna mean much after sustained food/gas shortages, not to mention martial law where everything is free game for commandeering. A well armed eco-village or the loner-farmstead(of the classical peakoil doomer variety) vs military tanks and apache helicopters...
Posted: Mon Jul 14, 2008 12:25 am Post subject: Re: Fannie, Freddie Losses Make Them `Insolvent,' Ex-Fed Pre
smallpoxgirl wrote:
...It's not the "home" that I'm infatuated with. I could live in some dumpy mobile home, or even a travel trailer. I'd love to make a cargo container house if I could slip it past the zoning people. What I want is a piece of land. I suppose, I'm "in a rush" in that I'd really like to have some sort of a sustainable place to live by the time the American economy starts to come unglued. Realistically, I'm not going to be in a position to buy land for at least a year maybe two. If I have to pay it off within 5 years, it's going to take a lot longer than that for me to be able to buy.
My mind automatically shifted to the default word "home" ---> you must of mentioned the word "land" at least 3 times already. My mistake.
I wouldn't worry about this whole 5 year loan limit deal.
The entire financial system isn't going to collapse by tomorrow morning. This sounds like just a bunch of "sensationalism" which is the only thing mainstream media is really good at. I just know that home values are dropping so I wouldn't touch that with a 10 foot pole, but as for "land" I have no idea what's the market for that so I don't have much to add there. good luck!
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