Here we go again! The Fed has hatched a scheme to put the mortgage giants into 'Conservatorship'.
This means that the Government is going to take control of these two mortgage companies, which equates to the most extensive governmental intervention in history.
According to reports the Execs of the firms will be dismissed and replaced with government experts that will buy time and be given money from the treasury (your tax $$) to reorganize the colossal debt and try to curb this mammoth crisis from reaching it's full effect.
Changes could come about as soon as early this week, execs from both firms showed up on 17th Street yesterday afternoon with their attorneys.
The action would represent a major escalation of the government’s role in private lending. The government would be assuming vast obligations it has historically disavowed, potentially using taxpayer money to make up for private business decisions gone wrong.
In recent months Fannie and Freddie have backed nearly 70% of all new loans and with the real estate market tanking they are in over their heads. When people can't pay their mortgage, they are losing, when the people can't sell their homes to downsize and get out from under it Fannie and Freddie are holding the bag, and the someone has to pay.
It looks like it will be you and I the taxpayer paying for this one.
You and I will be paying for the bad business decisions made by others as we struggle to cover our own bills.
This simply should not be. They need to be allowed to free fall and land where they may.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
12 comments:
Yea think the WCLB will go into recievership??
Those two "corporations" are quasi-government products already. This is an example of Facism. The government and the corporations have teamed up against the people. We are living in a Facist Dictatorship. It is a dictatorship because both parties are controlled, and no matter who gets elected, the result will be the same. Big government impenging on our liberty in an ever increasing manner. Look out!
i was off by 1 1/2 weeks, who controls the money? tax payers gonna get hammered again, who controls the money?
Rack-up one more for Industry category for Socialism.
3:01 posting is absolutely on point. Our Republic has gone to the dark side.
We truly have become a Socialist economy.
You know you use to never hear of the word Socialism except when the US referred to the former Soviet Union's economy.
Now your hearing about the US becoming Socialist almost on a daily basis.
What a shame for America. Our founding fathers would roll over in their graves if they knew what we have become.
"It looks like it will be you and I the taxpayer paying for this one."
Yea, the taxpayers will continue to be buying a lot of travertine floors and granite countertops and will continue to keep the rehab/flipper workers employed.
Heck, it might even get done for as little as 1.2 trillion of taxpayer money, although 5 trillion seems closer to the mark.
First it was the Transportion industry that was Socialized.
Then, it was the farmers. Look at their subsidies - socialized.
Now, its the banking sector turned Socialist.
Next it will be the automakers being Socialized.
Hell, why don't we all put-in for a government check. The real working America has become a thing of the past.
I have a firm belief government money doesn't exist. The working class sees small if any benifit from the governments effots. With no job and unable to pay for medication much less my mortgage my decision will be to die at my own hand before the elements kill me. College is a waste of time effort and money in the lack of a job market in this town. Easier said than done to pack up and leave.
Quick - invest in the companies that will be the beneficiaries of the gubment bailout so that you can get some of your money back!
Anon 3:01 & 6:55
You are absolutely right they are both 'quasi' government companies already and have been so. If allowed to free fall they would have done so 3 years ago. They have made ridiculous lending decisions.
As far as the Auto industry being socialized, think back to 1979 when Lee Iacoca asked the government to bail Chrysler. When Jimmy Carter did that, my mother looked at me and said "Remember this day, American Capitalism no longer means what it is supposed to mean" I wrote it in my diary; my mother a true patriot, wept.
I have been reading about grass roots efforts to stop the madness, and they are suggesting that we stop paying taxes. Their premise is that this machine that is eating our freedoms, our livelihood, and intruding into every aspect of our lives would come to a screeching halt if we would stop paying them.
Wymzie:
We pay federal income tax VOLUNTARIY. It is actually called a voluntary income tax. We also "become" citizens of the Federal Government (which only has legal jurisdiction in the District of Colunbia) by "asking" for a SOCIALIST SECURITY CARD. We are asking for and getting exactly what we want. We want these elitist (who happen to be globalists in every sense) to take care of us. We are a pathetic group of mindless idiots. Americans - mindless idiots, slaves. The constitution allows for "volutary slavery". How sad.
What's happened to the free-market? Isn't that the republicans answer to every problem.
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