Friday, Jul 25, 2008
More Zero's than a Zimbabwean Banknote
Yahoo Finance - CNBC: 'Stealth' Housing Bailout: It's Bigger Than You Think
With Congress on the eve of passing a historic bill that would give the Treasury a blank check to lend money to Fannie Mae and Freddie Mac, it’s worth looking at how much money the government has already pumped into the system during the housing crisis.
Posted by stevie dee @ 09:34 PM (449 views) Add Comment
4 Comments
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1. paul said...
This will truly finish the dollar and put future US generations truly onto the Road to Serfdom.
2. gardeniadotnet said...
Re: The American Housing Rescue and Foreclosure Prevention Act of 2008.
This bill passed the US House of Representatives by an overwhelming margin of 272-152.
While based on its title and the explanations given in our media this would seem to be a bill loaded with good tidings for all, further examination reveals that it is anything but. The major highlights of this bill are as follows:
The bill extends the statutory national debt ceiling by another $800 billion - this gap will be filled rather quickly. This also sends a very clear signal that the situation will require far greater sums of money than we are being led to believe.
The bill extends to the US Treasury carte blanche to purchase GSE debt, particularly that of Fannie Mae/Freddie Mac. In effect, Congress will no longer control the purse strings; rather they will be controlled by unelected, unaccountable political appointees. These two GSE’s own or guarantee a good portion of the $12 Trillion US residential mortgage market. This bill paves the way for the US Treasury to put American taxpayers on the hook for as much bad debt as Fannie and Freddie can come up with.
3. gardeniadotnet said...
Privatised profit.
Nationalised debt.
As Mr. Punch is quoted as saying, "That's the way to do it!"
4. stillthinking said...
Chomsky would have a heart attack. The money has not been pumped into the housing market at all !
Same situation as here. - The money is used to back the hefty financial deposits of those who sold - , deposits which should be backed by mortgage debt. Even now the papers are full of the importance of the housing market to the economy, when the economy is actually just dependant on debt, and major debt is used for house purchases.