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Post Info TOPIC: Fannie and Freddie fail
arbilad


Head Chef

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Fannie and Freddie fail
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The government is taking over fannie mae and Freddie Mac.
Some important points from the article:
  • The government will be taking over the two entities and running them through a holding company.
  • They'll continue, for now at least, guaranteeing loans, just as a government entity now.
  • Most stockholders are SOL (Sorry Out of Luck), because their stock is now worthless. Some holders of preferred stock will get something. Government banks that hold Fannie Mae or Freddie Mac debt will get their money.
  • Just last week the government was hoping not to have to intervene at all. Then they discovered that both entities lied about how much money they have on hand and how much money they owed.
Mind you, these are two companies that have been described as vital to our economy. How many bullets can we dodge? I think it was in this article they mentioned that if they hadn't saved Bear Stearns that it would have meant the collapse of the entire financial system. This is much bigger. They haven't even finalized the details yet.
Also, think about it this way: our economy is now hanging on the hope that the government will be more responsible with handling the money of the two companies than their officers were. In other words, we're trusting the politicians to be fiscally wise.ashamed

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If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!
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lundbaek


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Of course the FedGov can always call on the Fed to crank up the printing presses and make available whatever money it needs/wants.  And that has th effect of further diluting the money we hold, ultimately reducing its purchasing power.  So in the end, who really pays? 

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beefche


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Hey, Congress.  I can't pay my credit card bill this month.  Can I get a bail out?  My economy will fail if I fall into further debt.  I'm sure the other taxpayers won't mind giving me a small percentage of their income to help a fellow citizen out. 

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Jen


Senior Bucketkeeper

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And it looks like the CEO's will still get their golden parachutes: 9 million for one, 14 million for the other.

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"There is order in the way the Lord reveals His will to mankind. . .we cannot receive revelation for someone else's stewardship." L. Tom Perry
lundbaek


Profuse Pontificator

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On March 21, 2008, The August Review wrote,

As the global financial crisis unfolds, one thing is certain: The major investment and commercial banks who have wrecked our economy and financial system are now successfully sucking unlimited amounts of money from the people's Treasury to bail themselves out.






 



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Cocobeem


Keeper of the Holy Grail

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So... anyone putting their "liquid" assets into something else?

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Life is tough but it's tougher if you're stupid.  -John Wayne
arbilad


Head Chef

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I'm putting all of my money into Zion's Bank! The Lord will never allow it to go under!
Just kidding.

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If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!
- Samuel Adams
Cocobeem


Keeper of the Holy Grail

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Clearly Zions Bank is a good choice. nod.gif

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Life is tough but it's tougher if you're stupid.  -John Wayne
arbilad


Head Chef

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Just don't write any checks with embarrassing images on them, or Coco will tell on you!

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If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!
- Samuel Adams
Organist


Senior Member

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Put your money in food storage. Or, use your money to become one of the elites who will get lots and lots of money from the federal government.

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Bass Couplers are for wimps
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