In Bankers We Trust -or- Financial Socialism for Dummies

More financial socialism than you can shake a stick at:

FDIC May Borrow Money from Treasury: Report

FDIC Running Out Of Money and Needs More!

So we have Joe Public who can't pay the mortgage due to outrageous banking practices being responsible for those banks "getting into trouble" who in turn get a bailout in the form of three different types of "borrowing windows" directly from the private Fed, who in turn make the money available through a deal with Treasury for interest (that's you dear taxpayer). But if your not "too big to fail" you get your bailout from the FDIC who are in so much trouble they are going to be allowed to borrow directly from the Treasury themselves (again that's you dear taxpayer) even though at the moment they have only lent out about half of what they have (I wonder what's coming? ).

This is essentially a public bailout of the FDIC itself.

Joe public who couldn't pay his mortgage will be taxed to death to pay for all of this and be made to point fingers at whatever political party gets the blame for "raising taxes". Well you heard it here first.

This is where the tax hikes are coming from.

It's to help the banks, nothing more, nothing less.

Financial Socialism.
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Here it comes: U.S. nears rescue plan for Fannie and Freddie

The government has formulated a plan to put troubled mortgage giants Fannie Mae and Freddie Mac under federal control, ...

Under the plan, which could prompt one of the most sweeping government interventions in the workings of financial markets in U.S. history, federal officials would place the firms under a conservatorship...

The action would represent a major escalation of the government's role in private lending. The government would be assuming vast obligations it has historically disavowed, potentially using taxpayer money to make up for private business decisions gone wrong.

More than half of all mortgaged properties in the United States are heading for federal state control while people keep playing their petty little political games blissfully ignorant of their true fate.

The debtors prison's can't be far behind.
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[edit on 9/6/2008 by Gools]

Do I really need to "update" this with the latest news to prove a point?

Titor was a punk.
ATSers rule!
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Couple days old, but an ats search failed to turn this one up.

Freddie Mac to Rent Foreclosed Homes

WASHINGTON (Jan. 30) - Mortgage finance company Freddie Mac said it will allow some borrowers to rent out their homes after losing them to foreclosure.

The goal of the new policy, announced Friday, is to prevent properties from becoming vacant so they won't fall into disrepair.

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Seems like a win/win right? - good for Freddie - a break for the residents.

Then why don't they say that? Why do they claim that the sole motivation for this proposal is to protect GSE assets, when the relief afforded residents is so obvious...almost noble.

Fall into disrepair By the time most homes go into foreclosure, the gardener, the handyman, and the weekend fix-it trips to Home Depot have long since disappeared. Do the kind folks at Freddie really think that cash strapped former owners turned tenants are going to be playing keep-up with the Joneses? They're BROKE, and probably getting broker.

With Beijing busy initiating reforms aimed at transforming China' housing market from a state socialist model - to a market based model - the US - by hook, or by crook, appears to be making inroads in the opposite direction.

Wait! I just remembered, GSE' are only quasi-governmental.

Shucks! Guess I'll have to spare you my rant on Federally Subsidized Housing as [insert 'S' word].

Sub-Prime Re-Do

This is going to aid an economic recovery If anyone still lacks the motivation to make a call, write a letter, or join a local civil disobedience organization...this should do it.

Fannie Mae to Loosen Rules for Home-Loan Refinancing

Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases, according to a notice yesterday to lenders posted on the Washington-based company’s Web site.

Fannie Mae’s changes will include allowing borrowers seeking to take out a loan that is 80 percent of the value of the home or less to qualify for refinancing with credit scores below its 580 minimum.

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