Thursday, December 24, 2009

Unlimited Bailout: Fannie, Freddie Lifeline for 3 Years

Dec. 24 (Bloomberg) -- The U.S. Treasury Department will remove the caps on aid to Fannie Mae and Freddie Mac for the next three years, to allay investor concerns that the companies will exhaust the available government assistance.

The two companies, the largest sources of mortgage financing in the U.S., are currently under government conservatorship and have caps of $200 billion each on backstop capital from the Treasury. Under the new agreement announced today, these limits can rise as needed to cover net worth losses through 2012.

The Obama administration is “beginning to realize it’s not getting better and it’s not likely to get better” soon in the housing market, said Julian Mann, who helps oversee $5.5 billion in bonds as a vice president at First Pacific Advisors LLC in Los Angeles. “They don’t want the foreclosures now, so they’re saying, we’ll pay whatever it takes to continue to kick the can down the road.”
LINK HERE

11 comments:

  1. Well this is it folks. The US government is standing behind all home mortgagesr regardless of amount for 3 years. This means we are all screwed and a cold wind is coming. Glad we have 100 lbs of gold to offset ou4 losss on the dollar collapse.

    ReplyDelete
  2. @ Tyrone

    Yep. I remember thinking that lady was a complete idiot.

    Maybe not...apparently all the problems will be solved if we print enough money.

    This is going to end very, very badly.

    ReplyDelete
  3. dillinger is on the warpath also

    ReplyDelete
  4. Like the children's cartoon character Buzz Lightyear once said:
    "TO INFINITY, AND BEYOND!!!"
    The administration is taking economic advice from a cartoon - a fitting practice for running a cartoon nation.
    The real children will suffer mightily from the actions of this Chicago politician frontman for the banksters.

    ReplyDelete
  5. This is a call for all the Whites to leave the country so the economy can go back to how it once was.

    ReplyDelete
  6. 8:32 Please get real. Don't get stuck on stupid.

    ReplyDelete
  7. Actually, this is a call for stupid people to leave the country, including: religious fundamentalists, bigots, fool-hardy patriots, as well as violent people, like every-white-person-you-know. Ah ah ah...

    ReplyDelete
  8. Well man, you missed your calling. you shoudl have been around when Hitler was in power so you could beat the racial drum and then end up in an international court.

    ReplyDelete
  9. Does this mean I can stop paying the mortgage on the house I bought because my neighbos outbid me on the house we REALLY wanted. Now I'm stuck in this shit house, and the neighbors foreclosued and now their house is empty. Why should I pay? Whats the incentive? Credit ratings? HAHAHA!

    ReplyDelete

Everyone is encouraged to participate with civilized comments.