Freddie And Fannie

[Optobear]

So the elephant was in the corner all along.

http://news.bbc.co.uk/1/hi/business/7502184.stm

[yellerkat]

Don't forget their two ugly younger sisters, Ginnie and Sally. They're not doing too well either.

[Tomas]

This is big enough to collapse the whole world economy.

&......there is no way out.

Has the armageddon moment come? You decide

[bobby9983]

This is big enough to collapse the whole world economy.

&......there is no way out.

Has the armageddon moment come? You decide

No

[bendy]

it would be one hell of a bailout if one of them goes under.

would the US dare do the same as the UK re NR.

could they?

[Bloo Loo]

This is big enough to collapse the whole world economy.

&......there is no way out.

Has the armageddon moment come? You decide

Let me introduce you to the Fed 45.

it can blow the head of your economy clean off.

there was a lot of bailing going on in all the excitement.

Now, did i bail 5 or did I bail 6 banks?

Do you feel lucky?... Punk?? Well do ya?

[Tomas]

it would be one hell of a bailout if one of them goes under.

would the US dare do the same as the UK re NR.

could they?

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Fannie, Freddie Are Too Big in Mortgages to Fail, Lawmakers Say

"July 10 (Bloomberg) -- Fannie Mae and Freddie Mac, the largest buyers of U.S. home loans, are too big for the government to let them fail, leading Republican and Democratic lawmakers said.

The government-chartered companies, which own or guarantee about half the $12 trillion of U.S. mortgages, can count on a federal lifeline, said Republican Senator John McCain of Arizona and Democratic Senator Charles Schumer of New York.

The remarks by the presumptive Republican presidential candidate and the head of the congressional Joint Economic Committee followed a slide in the firms' shares to the lowest level since 1991. They indicate Congress would push the administration to use government funds to prevent the companies failing and threatening a deeper housing recession."

So only $6 Trillion riding on this then .

[bendy]

that is quite some figure.

the population would be paying that off for generations to come. and with the other big economies emerging and the brics too, it'd probably never all materialise.

bleak future.

[Mart]

Flipping heck, USD 1.5 trillion in 'unpledged assets' ?

[InternationalRockSuperstar]

The Fed/US Treasury can either:

1) Let these agencies go bankrupt or;

2) Hyperinflate the currency in a huge bailout.

Number one would be the best option for everyone in America (except a few filthy rich VI banksters).

[Injin]

The Fed/US Treasury can either:

1) Let these agencies go bankrupt or;

2) Hyperinflate the currency in a huge bailout.

Number one would be the best option for everyone in America (except a few filthy rich VI banksters).

Number 2 it is then. :angry:

[Slumpmonkey Returns]

If the US bails out these babies then it will bankrupt the country for ever. They will cease to be the world hegemon and China and the other emerging countries will take over!!! This is massive!

Edited July 11, 2008 by SlumpmonkeyII

[headmelter]

on BBC news now.

[headmelter]

Didn't get long.

[Nicholas Cage]

If the US bails out these babies then it will bankrupt the country for ever. They will cease to be the world hegemon and China and the other emerging countries will take over!!! This is massive!

China are one of the biggest bond holders, the ECB in public meeting said to get out of Fannie back in 2004.

By FLOYD NORRIS Published: December 22, 2007

http://www.nytimes.com/2007/12/22/business...amp;oref=slogin

For the last three years, China has been the financier that kept the American government well funded. In 2004, it bought a fifth of the Treasury securities issued, a proportion that rose to 30 percent in 2005 and to 36 percent in 2006. But according to United States government figures, China reversed course in 2007 and has become a net seller of Treasury securities. The Treasury said this week that China had $388 billion in Treasuries at the end of October, slightly less than it had at the end of 2006.

The sales, if the American estimates are correct, have come in a year when the dollar has been weak against most currencies. The sales would be consistent with China’s diversifying its investments into other currencies.

But the figures may be misleading.

For one thing, other Treasury estimates show that the Chinese are still increasing their holdings of bonds issued by quasi-government agencies, like Freddie Mac and Fannie Mae, and by American companies.

Since January 2001, when President Bush took office, the debt issued to the public has risen by $1.7 trillion, with $1.3 trillion of that increase being taken by foreigners, the Treasury estimated.

Of that, the increase for China was $327 billion, about a fourth of the foreign total.

Edited July 11, 2008 by maxwell

[Optobear]

China are one of the biggest bond holders, the ECB in public meeting said to get out of Fannie back in 2004.

I wondered that, on R4 this evening they interviewed some US analyst, who said that the Fannie and Freddie share holders would almost certainly lose out, but the bigger risk is surely the bondholders, and the derivatives around those. Would only take one big institution to go wrong to collapse the pack of cards.

[headmelter]

Didn't get long.

It was even shorter on ITV.

[petetong]

where's cgnao when you need him

[Optobear]

This is big enough to collapse the whole world economy.

&......there is no way out.

Has the armageddon moment come? You decide

Can the plongeurs protectionistes step in and save Freddie and Fannie? Tune in this time next week to find out.

[InternationalRockSuperstar]

don't worry,

IT'S CONTAINED

[headmelter]

where's cgnao when you need him

Dr bubb might know.

[petetong]

don't worry,

IT'S CONTAINED

Thank you, I needed that

bloomberg guest analysts - freddie mac is insolvent, no assets, $5 billion off balance sheet debt (?), $1.6 trillion in guarantees ...

fannie mae similar I guess.

[bendy]

don't worry,

IT'S CONTAINED

that titanic pic ain't right - in the film decapitated was on the back of the boat when it went under, the back has already gone there.

like how the artists has still got the engines producing smoke too

nothing like a bit of dramatic effect to get the people hey

[Wait & See]

Number 2 it is then. :angry:

How will they print enough??

This, dear HPC'ers, is the turning point - welcome to the third world.

[Biffo the Bear]

that titanic pic ain't right - in the film decapitated was on the back of the boat when it went under, the back has already gone there.

like how the artists has still got the engines producing smoke too

nothing like a bit of dramatic effect to get the people hey

If you look under the second funnel from the left, there's a little guy preparing to pray to Mecca too; multi-culturalism across the ages