this didnt take long.....read this as "Taxpayers to soak up subprime mess" Chairman of the Senate Banking Committee Christopher Dodd, D-Conn., this week called on regulators to raise the caps on the mortgage holdings of Fannie Mae and Freddie Mac. This would allow these government-sponsored home loan investors to provide some much-needed liquidity to the strained mortgage market. Investors are keenly awaiting an announcement from the Office of Federal Housing Enterprise Oversight, or Ofheo, which regulates Fannie and Freddie.
Why even have a market. Everyone should do whatever they want and watch the fed and congress bail them out. Everyone default!
FNM and FRE have been looking for a way to slip the leash that was put on them after their $11 billion dollar accounting fraud. Since they act as kind of a government-sponsored slush fund for democrats, the democrats in congress are saluting this trial balloon. It's a great idea, provided the taxpayers want to ante up a few trillion down the line to bail these morons out, but hey, so long as a few out of work political hacks can cash in some sweet stock options, who cares.
we have two choices: 1) bail out the morons. fed no longer is forced to cut rates and destroy the dollar. 2) have a housing collapse. force the fed to cut rates in inflationary setting. devalue the dollar. you can't win.
where money for bailing out from? dollar will be destroyed either way depression is in the cards consumers can't manage their debt at current interest levels Fed must cut to Japanese level to allow customers to manage their debt although in this case inflation will erase consumer purchase power
Its sad that the responsible people who didnt take extreme risks are going to be punished for this and forced to pay for the idiots mistakes via taxes.
the Fed. used to protect depositor's assets.... they now are there to protect the banks..... order green ink and paper...and gas up the copter