Mortgage giant rescue could cost (Tax Payers) $25 billion

Mortgage giant rescue could cost (Tax Payers) $25 billion

biz.yahoo.com

WASHINGTON (AP) -- A federal rescue of troubled mortgage giants Fannie Mae and Freddie Mac could cost taxpayers as much as $25 billion, Congress' top budget analyst said Tuesday.

But Peter R. Orszag, director of the Congressional Budget Office, predicted in a letter to lawmakers that there's a better than 50 percent chance the government will not have to step in to prop up the companies by lending them money or buying stock.

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So...let me get this straight:

These mortgage giants made a fortune off of predatory lending, created a giant bubble for themselves by exploiting and taking advantage of home buyers - and now tax payers have to bail them out?

What a load of crap. Not to mention that, because of this crisis, mortgages will be harder to acquire now because the rates will go up.

I also hear a lot of people on the site shouting about socialism. Well folks, welcome to the dawning age of a socialized monetary system wherein the public welfare picks up the check for private business.

biz.yahoo.com
(visit the link for the full news article)

We don't always agree, but on this we do.


While it was going on, so many people said "People who are borrowing money are the ones at fault"

Which is like me putting out a load of trash, and blaming the cock roaches for infesting my neighbors house.

I'm glad this is finally happening, and I have a sick desire to see this hurt the banks even more.

Eventually this will become the new fable as to why it is important not to screw over your brother. Because eventually it will effect everyone.

I'm torn on this one. On the one hand it is socialist and if I don't like the idea of my tax dollars going into the needy individual's pockets, then why in the hell would I like the idea of it going into the pockets of a corporation? On the other hand, most financial analysts have claimed that if the feds hadn't done this, our economy would have severely crashed and we'd have been looking at financial ruin of the entire market because these two were so intertwined with every sector of the market. If that's true, then I suppose it was a prudent, albeit agrivating, move to bail them out.

reply to post by burdman30ott6


Yeah, I guess my point is that if all it is going to take to bail these guys out is 25 Billion (not to sound like that is not a lot of money, but put up against 5.2 trillion it is peanuts), then why wasn't this handled privately and hushed up a bit?

I think it is because the Fed knows it will take a whole lot more and impact the markets even more severely than it already has.

I would be shocked if this is all it took to bail these giants out.

reply to post by TruthWithin


Now now, that $25 Bil could be used better elsewhere... like in Iraq where it could keep our military operations running for 12 1/2 weeks at the current average of about $2 Bil per week.

Washington truly is a city filled with asses, dullards, and imbeciles and all of them, unfortunately, have a fistfull of ours and our children's credit cards to be used in stores that don't ask to see an ID before they process the charges.

It's funny how people want to take this land or that land, start wars and kill millions just to have materialistic things that we sure in the hell aren't taking with us when we die. Twenty five billion isn't about the money it's about power, control of the dumb masses. The money is just paper, but our life is what's valuable as long as it fits the needs of the elite. This world will probably be here when we're long gone and all the blood spilled and money spent will not matter. Sad that it has to be that way.