http://www.monstersandcritics.com/news/business/news/article_1429129.php/US_government_to_take_over_Fannie_Mae_Freddie_Mac__Roundup__

I know that we have the Socialized Banking thread, but that is based on something different. This is a huge story, though.

So much for the initial explanation of the prior bill that offered an unlimited line of credit to the failed companies as being little more than "a boost to investor confidence." It was done to set up a takeover. pure and simple. Gotta live that free market though, right?

9/8/2008 10:03:52 AM

I already posted that link in the Socialized Banking thread.

9/8/2008 10:05:44 AM

This topic is pretty huge by itself. Socialized banking encompasses this issue, but this def deserves its own thread as the story evolves.

9/8/2008 10:14:57 AM

no, it does not, you silly fucking n00b

9/8/2008 10:21:59 AM

from WIKI...

Quote :

"Even though she had no previous training nor experience in finance, (Jamie) Gorelick was appointed Vice Chairman of FNMA from 1997 to 2003. She served alongside former Clinton Administration official Franklin Raines, and earned over 26 million during her six years there. During that period, FNMA developed a $10 billion accounting scandal. One example of falsified financial transactions that helped the company meet earnings targets for 1998, a "manipulation" that triggered multimillion-dollar bonuses for top executives. Gorelick received $779,625. On March 25, 2002, Business Week interviewed Gorelick about the health of "Fanny Mae". Gorelick is quoted as saying, "We believe we are managed safely. We are very pleased that Moody's gave us an A-minus in the area of bank financial strength " One year later, Government Regulators "accused Fannie Mae of improper accounting to the tune of $9 billion in unrecorded losses". "

As you may recall, Gorelick was also instrumental in setting up the "wall" of communication barrier between federal agencies which contributed to our unpreparedness for 9/11.

Jamie, you've done so much for America...please stop.

9/8/2008 10:28:23 AM

I would give my left nut for them to have only lost $9 billion in an accounting scandal at this point.

9/8/2008 10:44:32 AM

good day for the shorts but we arent out of the woods yet

9/8/2008 10:45:24 AM

Quote :

"Palin Makes Her First Gaffe stumble digg reddit del.ico.us news trust mixx.com September 8, 2008 11:50 AM Sarah Palin on Freddie and Fannie: "They were costing the taxpayers too much money..." "

Umm, they didn't have any public funding until this weekend. Nice. The only economics she should be concerned with is home economics, amirite?

/in before the sexist comments. *ITS A JOKE*

9/8/2008 5:15:11 PM

Thanks for politicizing this thread

It would be nice to discuss the causes and implications of this current financial crisis without devolving into political shit-flinging.

9/8/2008 5:45:13 PM

It's 2 months till the election, sorry Prawn but it's in everybody's minds. That and I did feel her quote from only a day or so ago was precisely about this topic. Or trying to be about this topic.



[Edited on September 8, 2008 at 8:05 PM. Reason : -]

9/8/2008 8:01:26 PM

the thing that gets me is that the CEOs of these two companies will get off with not so much as a slap on the wrist. They'll keep the billions of dollars they made running our economy into the ground. Call me silly, but I think they should have to pay as much as possible towards the cleanup so that the tax-payers won't be left to foot so much of the bill. So the CEOs contribute 2billion when all is said and done, yet it still costs the taxpayers 40billion? Hey, that's 2billion less than it would have been, as far as I'm concerned.

9/8/2008 9:56:22 PM

The topic seems to uniquely unite most republican and democrat citizens in agreement that it is a bad policy, but also seems to unite republican and democrat politicians in arguing it is a good idea

9/8/2008 10:36:33 PM

Why isn't John "Mr. Reform" McCain screaming bloody hell about this bail-out of the banks?

He should be calling for the move to privatize Fannie and Freddie, and let the bankers know that they better be more careful with loans cause the American people are finished with bailing their butts out.

And if the gov't can't handle being a mortage-lender, why in the hell would we trust it to run our health-care?

9/8/2008 10:37:35 PM

oh, but don't you know? Freddie and Fannie weren't run enough by the government... That's why they failed, mang

9/8/2008 10:48:38 PM

Quote :

"He should be calling for the move to privatize Fannie and Freddie, and let the bankers know that they better be more careful with loans cause the American people are finished with bailing their butts out. "

Earthdogg, you're slipping, man. You're about 75 years too late. They were privatized back in the 1930's.

9/9/2008 2:02:09 AM

I'm thinkin he meant re-privatize

9/9/2008 3:42:07 AM

Well, there is a lesson here.

Government agencies should never be privatised; they should be disbanded.

9/9/2008 8:54:40 AM

Yeh and we better send in the government to back Microsoft when they fail in a couple years.

9/9/2008 9:57:26 AM