Monday, Jul 14, 2008
Just another $300 BILLION !!!!!
New York Times: Treasury Acts to Save Mortgage Giants
An official said that the Fed’s decision to permit the companies to borrow from its so-called discount window was approved at the request of the Treasury but that it was temporary and would probably end once Congress approved Treasury’s plan. Some officials briefed on the plan said Congress could be asked to extend the total line of credit to the institutions to $300 billion.
Posted by waitingfor hpc @ 09:02 AM (975 views) Add Comment
13 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. fubar said...
The amounts of money involved here macerate my brain just thinking about them never mind the repercussions. The best case scenario seems to be the US taxpayer is saddled with this Godzilla sized Northern Rock thing.
The article doesn't mention any kind of reciprocal demand by the US govt. i.e. that the people/organizations involved in creating this disaster clean up their act or accept stricter regulation. It may be that the act of getting so Royally screwed is enough to sort things out for a while but (and I accept I know nothing) this seems like a good time to lay the foundations for making sure things can never get like this again - well for 80 or 90 years afterward at least. Until everyone has forgotten how shee-it it is to live through financial meltdown and it starts all over again.
2. little professor said...
Jebus. They are just going to make this whole thing a lot more painful by throwing such astronomical sums at the problem. These two are dead parrots - its time to let them go under.
3. Spotthedog said...
It's the Fed wot's dunnit, innit?
4. whiteknight said...
Hmm now where is all that "liquidity" going i wonder?
5. beartil2010 said...
FM & FM were government created just as suggest, in the 30s, to avoid this sort of thing happening for 70 or 80 years. They have provided massive liquidity to the US mortgage market and allowed it to function.
They cannot go under, not because of their size, but because they are so fundamentally entwined into all the lenders and banks that they simply won't be able to make any loans.
Yes the US taxpayer is saddled with a huge albatross around their neck, true. The cause is the same: allowing other lenders to lend to people who could not pay their debts back, and/or huge salary multiples etc.
Difficult one for US gov - should devalue the dollar nicely.
6. mark said...
but if they hold 5 trillion then 300 billion is nothing
7. renting2 said...
The US taxpayer will foot the bill. If the US does not raise taxes then many capital projects will be cancelled/postponed. This may have huge global implications if the US stops importing. The recent Airbus deal for example.
8. Orwell said...
No wonder Brown's looking so haggard, over here 18 months...
Which of the big four? RBS I suspect...
9. sold 2 rent 1 said...
Remember this is a wealth robbery of the masses by the elite.
The tax-payer bailouts are going to get bigger and bigger.
When (not if) the oil bubble bursts, hedge funds will blow up leaving the banks with more bad debts.
Even bigger bailouts will happen.
This is when the wealth robbery will be complete.
It is much sooner than you think.
10. mark said...
look at the polls result about this bailout, the americans are more vocal than we are..
http://polls.reuters.com/us/1215785685196
11. James said...
Come on s2r1, time for a lie down. Wrong on May 16, wrong at the end of June, wrong on 6th July. Utterly discredited.
12. sold 2 rent 1 said...
My gold is doing nicely James.
How is yours?
13. Urban Bear said...
sold 2 rent 1,
I just hope this illegal government (re: 1911 Fabian traitors) and the EU keep their thieving fingers away from privately owned Gold.