Rumor has it that Freddie and Fannie are going to be bailed out.

[Hangtime]

redistribution of wealth.

First you get the every single penny you can outta the poor suckers, milk 'em white and then kick 'em out on the street. Then you redistribute it to corporate financial institutions that should never have been permitted to rape the guy to begin with. Then, when the thieves discover they screwed themselves in the process of screwing the public the government steps in to back up the stockholders that thought the whole process was just 'business as usual' by printing more money.

Brilliant.

[crockett]

Freddie and Fannie are not regulated by the gov?

The govt backs loans in the US and uses Freddie and Fannie to do so.. When the markets were deregulated in the 90's it opened up the lenders to take more risky loans. (ie APR's and the sub prime stuff) This in turn put Freddie and Fannie in a more vulnerable position because they were securing these loans and that is what has led to much of the problems we have today.

It was the same thing that allowed Enron to "cook the books" with out the regulation that we "used" to have the CEO have been able to keep everyone in the dark about this stuff but now that the problems arise it all comes out to hit us all.

[Nilsen]

Not a huge fan of this move, but im afraid it had to be done. The consequence to the national and international banks, finanical institutions and the world economy in general would be to great if they had collapsed.

Ive said it and lived by it for 15 years. Far too many people borrow far too much money to have a lifestyle that they cannot really afford. Those who borrow beyond their means, or even borrow based on their current means without consideration for the fact that their income may dip because of natural or unnatural fluctuations in the economy are just as much to blame as those that issue the loans. Its a personal responsobility that every person has and that can not be blamed on the government and the institutions ALONE.

Beeing a good consumer is not shopping houses, cars or whatnot to help stimulate any economy if it means you use your bank or credit card to do so. They (governments and/or institutions) may try to tell you that its a smart way to invest or buy goods, but that is only the case if you are 100% sure that your income will never change in the foreseeable future and you always are able to pay every bill you get.

Beeing a good consumer is about beeing a responsible consumer.

[Tarmac]

the government steps in to back up the stockholders that thought the whole process was just 'business as usual' by printing more money.

You're aware that the common stock holders are most likely getting screwed in this deal right?  Doesn't look like anybody's bailing us out.

I rode FRE down, now it looks like the government's stepping in and pretty much screwing anybody who had hoped to ride it back up.

[Shamus]

You're aware that the common stock holders are most likely getting screwed in this deal right?  Doesn't look like anybody's bailing us out.

I rode FRE down, now it looks like the government's stepping in and pretty much screwing anybody who had hoped to ride it back up.

You played the wrong side, the big boys were and are in the debt end of it, not the equity side, its that way in all the financials , the mutual funds buy the equities, the hedge funds are big in debt.

shamus

[crockett]

You're aware that the common stock holders are most likely getting screwed in this deal right?  Doesn't look like anybody's bailing us out.

I rode FRE down, now it looks like the government's stepping in and pretty much screwing anybody who had hoped to ride it back up.

Yeah exactly.. I've seen people blaming the share holders and I have no clue where they come up with that. The shareholders are the guys that held this company and kept it a float. Shareholders are the ones that kept these companies alive the last few weeks by buying stocks with the govt telling us all along there was no real need to worry about a take over. What were the quotes.. "the bill is just in case they need help".

This will be just like Enron in the fact the shareholder gets bent over and screwed meanwhile the CEO's & brokers from all the mortgage companies walk away making millions and will never see a day in jail. Much less the shareholders and tax payers get left holding the bag.

Like I said before I didn't have that much money in them, and I was in it knowing it was a risk. However I'd like to know why the govt suddenly decided to come in a wipe out the shareholders out of the blue when they didn't do it weeks ago? Both companies were selling their debit with pretty good success just like normal. Hell the stock was even on a steady rise all last week.

In short the investors gets punished because the govt let big business be irresponsible. Talk about the take over of America and there you have it Big Business once again gets out of a mess and the govt gives to them while taking from the tax paying peasants.

[Bodhi]

Well in reality these problems came about because of a "lack" of govt regulation. The Enron problems and the current housing mess all came about after the markets were deregulated, so it wasn't really the market not running it's self. This stuff happened because these companies were able to manipulate the market because they wern't properly regulated.

These problems exist because of mismanagement and the lack of consequences for the people who mismanaged it.  Government regulation is the fastest way to ensure inefficiency, high cost, and bad return.

[Kaw1000]

GREED!!! Our tax money at work!! Government bails them out, we the tax payers
eat it!! Another example of Corporate greed! Bumping peoples income..bumping values
of property's. Many people getting rich. Ceos making millions...and when the sheet
hits the fan...we the tax payers pay the bill. Unfreeking believable!!

[crockett]

These problems exist because of mismanagement and the lack of consequences for the people who mismanaged it.  Government regulation is the fastest way to ensure inefficiency, high cost, and bad return.

Yet we didn't have these problems when the market was regulated properly.. go figure.

[Shamus]

But Glass-Steagall was such a pain and it came from that socialist Roosevelt.

shamus

[Bodhi]

Yet we didn't have these problems when the market was regulated properly.. go figure.

Regulation has nothing to do with it. The regulators rarely understand what they regulate and create a system of mismanagement and checks and balances that impede but do little to promote (unless of course it allows government aid to big business).  It all comes down to the management and the ignorance of investors who fail to realize that it is their duty (if they wish to be a successful investor) to watch what is going on in companies which they have a share in. 

Liberals are always about regulation and government hand outs until it comes out of their pockets.

[lasersailor184]

It's no different than airline bailouts...  Hey, let's make retarded investment/business decisions in a market that is critical to the welfare of the country.  We'll make some bucks, and the govt will bail us out when the bubble we've created bursts.

Just like everyone seems surprised that airlines go under when they sell airline tickets below cost, why is anyone surprised that lenders need a bailout when they give the same low cost loans to both high and low risk borrowers?

The reverse darwinism these days is really taking its toll.  I personally believe we need to ban warning labels.

[Yeager]

its just a rumor.  dont believe it.