Navigation
Recently visited pages
 
new forums latest posts

    Forum: Economic discussions

    Forums->Economic discussions->Death-watch for Fannie Mae and Freddie Mac?

    Death-watch for Fannie Mae and Freddie Mac?


    Fannie Mae and Freddie Mac shares plunging.

    For those who don't know: these "Government Sponsored Enterprises" "securitize" home mortgages and leverage them up, one of the reasons the USA has had such a long glut of housing (a sore point for one of the posters here...).

    By the way, their securitized assets are all over mutual funds, both in the USA and abroad.

      private message
    on: Tue 08 of Jul, 2008 [07:15 UTC] score: 0.00 reads: 55493

    Posted messages

    Top
    author message
    twocentseditor
    twocentseditor
    private message
    Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Tue 08 of Jul, 2008 [18:22 UTC] score: 0.00
    The death watch is not for Fannie and Freddie; it is for the holders of Dollars. People need to get off the notion that any of these firms will be allowed to fail. They will be bailed out at the expense of the Dollar. Unfortunately, this fact will not stop the holders of their securitized garbage from losing their shirts as well.


    > Fannie Mae and Freddie Mac shares plunging.
    >
    > For those who don't know: these "Government Sponsored Enterprises" "securitize" home mortgages and leverage them up, one of the reasons the USA has had such a long glut of housing (a sore point for one of the posters here...).
    >
    > By the way, their securitized assets are all over mutual funds, both in the USA and abroad.


    author message
    Re: Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Wed 09 of Jul, 2008 [04:23 UTC] score: 0.00
    Point well-taken, two cent's editor, and personally I would not want to buy their paper or their currency. Little guys do not get rich by being bailed out (although sometimes big guys do!).

    I am also leery of the day when "too big to fail" turns into "too big to save". I keep asking this about my own bank, but everybody says to stay away from the little banks.


    author message
    MikeInOregon
    private message
    Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Wed 09 of Jul, 2008 [00:45 UTC] score: 0.00
    Great find Atash!

    Nice succinct comment, editor. That's what we have come to expect from you.

    This little recession is going to be comparable to the Great Depression. That's the best case scenario where everybody gets the Austrian religion.

    The worst case scenario is where everybody worships FDR & Keynes. In that case, the currency collapses as they try to inflate insolvency (and bad loans) into triviality.


    author message
    Re: Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Wed 09 of Jul, 2008 [04:28 UTC] score: 0.00
    > Great find Atash!
    >
    > Nice succinct comment, editor. That's what we have come to expect from you.
    >
    > This little recession is going to be comparable to the Great Depression. That's the best case scenario where everybody gets the Austrian religion.
    >
    > The worst case scenario is where everybody worships FDR & Keynes. In that case, the currency collapses as they try to inflate insolvency (and bad loans) into triviality.

    Mike, I can help you out here. What will NOT happen is that that everybody gets the Austrian religion, although some current infidels might wake up.

    Think about human psychology. My money is on that they actually BLAME guys like us for

    • trash-talking the economy (they'll claim our bad attitude sabotaged the economy--no kidding)
    • not doing enough to save the economy. Not going far enough. Not enough bailouts, interest rates weren't lowered (or raised, depending upon whether inflation or insolvency gets the biggest exposure!!!) fast enough, etc.

    As they say, think like a criminal. What better way to introduce draconian new legislation, than in a crisis.


    author message
    MikeInOregon
    private message
    Re: Re: Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Wed 09 of Jul, 2008 [13:58 UTC] score: 0.00
    "My money is on that they actually BLAME guys like us for... "

    When it comes to humor, I enjoy the absurd..... that is, until it takes on all of the trappings of reality!


    author message
    twocentseditor
    twocentseditor
    private message
    Re: Re: Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Thu 10 of Jul, 2008 [19:28 UTC] score: 0.00
    Good point Atash; I am also of the opinion that contrarians, Austrian and anyone who questions the status quo will eventually be blamed. After all, doesn't it make sense for the ones in power to blame the powerless (ie: US!!!)


    > > Great find Atash!
    > >
    > > Nice succinct comment, editor. That's what we have come to expect from you.
    > >
    > > This little recession is going to be comparable to the Great Depression. That's the best case scenario where everybody gets the Austrian religion.
    > >
    > > The worst case scenario is where everybody worships FDR & Keynes. In that case, the currency collapses as they try to inflate insolvency (and bad loans) into triviality.
    >
    > Mike, I can help you out here. What will NOT happen is that that everybody gets the Austrian religion, although some current infidels might wake up.
    >
    > Think about human psychology. My money is on that they actually BLAME guys like us for
    >
    > * trash-talking the economy (they'll claim our bad attitude sabotaged the economy--no kidding)
    > * not doing enough to save the economy. Not going far enough. Not enough bailouts, interest rates weren't lowered (or raised, depending upon whether inflation or insolvency gets the biggest exposure!!!) fast enough, etc.
    >
    > As they say, think like a criminal. What better way to introduce draconian new legislation, than in a crisis.


    author message
    MikeInOregon
    private message
    Re: Re: Re: Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Fri 25 of Jul, 2008 [05:11 UTC] score: 0.00
    This is a great thread!

    Now we've got a bail out.

    Joseph Stigletz (Nobel prize laureate) weighs in:
    http://www.ft.com/cms/s/0/b07c32ee-59e2-11dd-90f8-000077b07658.html
    He isn't really Austrian enough for my taste, but he recognizes a bamboozlement when he sees one.

    I read a piece on the Fannie bail out from Saudi Arabia. I can't find the link now.... It was amazing! Lot's of information and not a clue that there would be fall-out for the dollar.

    Then there is this MP3:
    http://media.libsyn.com/media/wallstreetexaminer/rf72308pv.mp3
    which must be 12 minutes long, or so. This bailout is a disaster.

    In my opinion, everything possible is being done to cause a currency collapse, and I mean OUR currency.






    author message
    twocentseditor
    twocentseditor
    private message
    Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Fri 25 of Jul, 2008 [14:11 UTC] score: 0.00
    The Dollar is under nearly constant manipulation at this point. It is range bound between 71.50 and 73.75 much in the same way gold has been range bound between 875 and 975 give or take a few bucks.

    The planners know that rational thought demands an exit from Dollar denominated assets. Folks are trickling out, not wanting to start a stampede because there is too much to lose for all should a stampede occur. Of course, this is not to say that there won't be one. Our sleazy Paulson and Bernanke don't stay awake 24 hours a day and if Asia sells while they're trying to sleep (I don't know how they can though), the dollar is in trouble.

    The planners also do not want a stampede into gold and other precious metal assets. The money must flow into Treasuries and paper. This is why their operatives are slamming the commodity markets right now. The more money that goes into commodities, the more printing will have to happen to keep the paper markets liquid thereby ending the game faster.

    I am convinced that the US economy is in its final death throes. There is simply too much debt at all levels.


    author message
    MikeInOregon
    private message
    Re: Re: Death-watch for Fannie Mae and Freddie Mac?
    on: Fri 25 of Jul, 2008 [18:29 UTC] score: 0.00
    re:
    > I am convinced that the US economy is in its final death throes. There is simply too much debt at all levels.

    I agree!

    For me, this bailout nearly guarantees a currency collapse. The world changed with the bailout.

    Jim Willie is one of my favorite commentators (even though I rarely read or listen to him.)
    http://www.contraryinvestorscafe.com/jimwilliesoapbox721_cic.wav
    A recent audio (.wav format) from him was quite good regarding across-the-board corruption. It was strangely obsolete in consideration of this bail out.

    While nothing has changed in regards to, "There is simply too much debt at all levels," We have congress assuming that 'too much debt.' Congress has no understanding of these debt levels. The US does not have the financial wherewithal to assume this debt and maintain its current obligations. There has got to be some fallout somewhere....

    .... and the audience's eyes shift to the 'full faith in the US dollar.'



    Page: 1/1

    Show posts: