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Does anybody here understand the impact when Fannie and Freddie go under?? They control $5 trillion worth of assets. Why have we not talked about this yet?? The USA is already $9 trillion in debt this would almost double it overnight..
Does anybody here understand the impact when Fannie and Freddie go under?? They control $5 trillion worth of assets. Why have we not talked about this yet?? The USA is already $9 trillion in debt this would almost double it overnight..
Yes, Freddie Mac and Fannie Mae are toast. The government will take them over, bail them out, and wipe out the equity holders. The results of it will really suck for a ton of people and there's no doubt that we will be/are in an ugly period of time...but the sky will not fall.
Originally posted by runningman
Bear Stearns is next with over $13 Trillion in derivative financial instruments.. OUCH!!
um...what in the hell are you talking about? Bear Stearns ceased to exist nearly half a year ago! The company effectively went bankrupt back in March of 2008. They were partially liquidated and partially aquired by JP Morgan through a government-brokered deal. The Fed (i.e., the taxpayers) basically guaranteed a big chunk of Bear Stearns' losses in a non-recourse loan to JP Morgan. There are no more Bear Stearns derivatives, we've already taken that whole mess on the chin.
no you took a shot on the chin it doesn't fix itself that fast.. the ripple effect has trickled through yet.. Also I was talking about Lehman Brothers.. I said Bear Stears by accident because I was watching a show on Bear Stears.. OOps..
lehman is ok, thier balance sheet got scary, but they have more than enough hard asset liquidity and the best management on the planet.
watch for UBS and creditte suisse. they in some trouble as a lot of thier value is lont term debt.
and i hate to say it, if barak wins, wall street in for more trouble. his policies are not conducive to these banks at all. there is a lot of speculation as to whether a lot of these CEO amd COO's will stay after the election is done wiht. if these guys all jump ship, watch the fuck out.
your life is an occasion, rise to it.
Join My Chant. new mix. april 09. dirty fuck house.
download that. deep shit listed there
Interesting to note that Fannie Mae was formed as a government agency in 1938. Then in 1968 the congress voted to take it off the balance sheet and convert it to a private corporation.
The very first off-balance sheet asset.......wow.
Also interesting to note how all the cronies of the FED and Government (Paulson, Bernanke, etc.) talk as if these institutions are critical for the survival of america. Congress passed this so called mortgage rescue plan and Paulson has his "Bazooka". All this was suppose to instill confidence yet somehow the stock price of these insitutions says otherwise and more importantly the spread on their bonds says it all.....the world doesn't think Fannie or Freddie are worth much and that all the shananigans of the FED and government types are just that....shananigans.
So yes, congress is about to take back onto its balance sheet what it took off 40 Years ago. After all, they know best.
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