Fannie Mae asks for 15 Billion Bailout!!!

reply to post by wycky


Thanks for posting that. It is actually very good to know. And like you said, it only gets worse and worse.

How FNMA ( Freddie Mae) works, in simple terms, so that more may understand and see the big picture.

1. Low income home buyer take loans to buy home from Bank. ( home cost $100,000, but loan only $80,000)

2. Bank issues loan in CASH to developer or PREVIOUS OWNER OF HOME for title deed. ( pays $80,000 cash. Balance $20,000 paid by buyer)

3. Bank buys debt default insurance by FNMA – meaning if new home owner defaults and did not pay on time, FNMA will pay for the home owner’s interest and principal to the bank.

4. FNMA not only guarantees the debt, it even buys the loan amount/the title deed of the home, ($80,000) so that the bank can use the money and loan to another low income home owner.


How FNMA screwed up.

1. Once new home owner defaults, Banks seek redemption on guarantee ( interest fees)

2. FNMA has the title deed, already paid ( $80,000) and should sell on the open market, but as buyers are few, the price offered are low ($50,000)

Therefore, FNMA lost on payment of interest fees to banks, as well as $30,000 off the market value( $80,000) of the home. Multiply that one home to hundreds of thousands, and the dollar losses becomes staggering.

Aftermath Post Financial Crisis.

And who implicitly backs the losses? The taxpayers, through the govt who implicitly offers up taxpayers money to buy the title deed and offer guarantees today.

(FNMA was a stockholder owned private corporation, not guaranteed by in anyway by the govt, till 2008 took over by the govt to stablize the market and help (?) home owners avoid foreclosure ( or help the bank buddies from collapsing?))

And who gets off scot free? Fat Cat bankers who made their interest fees (150% to 200% of principal for 30 year loans).

And who created the derivative markets that suckered FNMA into the game? Hedge funds fraudsters, rapaciously greedy bankers including the Feds and insurance fiends.

Debts became socialized, but profits become privatized.


Question time

a. FNMA asked for $15 billion dollars of taxpayers, but who is FMMA paying it to?
A) the banks/Feds
B) the govt, and then to the treasury, owed to the Feds.
C) the low income home owner to keep his home.

b. Is it conscionable for the banks to seek for interests payments guarantee and for losses once the homes are sold , on a home that is foreclosed, IN A CRISIS, which IS of the banks’ making?



[edit on 1-3-2010 by SeekerofTruth101]

Through my simple illustration of how FNMA works, you will realize now the tentacles of the Corporations/NWO that had been controlling US and citizens, and were always the ones to benefit, socializing debts quickly but privatizing profits quietly.

In the earliest birth days of the Feds, the governing belief was basically due to the era of their times – intellectual socialist movements gaining credibility and power in other countries, as well as the horrors of the rich being stripped of their wealth, and many of them even had their heads chopped off in China and Russia, as well as in its satellite states whom the communists international funded.

It was a great concern to rich men during that era, namely the Rothschilds and the Rockerfellars, railroad and shipping barons. They had to prevent such movements in their country, and believe in the age old Roman theory that if the rich controls the wealth and treasuries of nations, nothing gets down, no govt can exist.

The ancient Roman Senate stopped Caesar’s conquest by denying him funds to pay his troops. Britain was the last outpost of Caesar’s ambitions, and consolidation for peace within its borders by his nephew Augusta’s.

Similarly, the Feds and the rich believed that by controlling and doling out funds, elected govts will have to obey and protect them.

With horror stories coming out from Russia and China, the Corporations did all they could to smear the idealism of communism and socialism, even though what the tyrants Stalin, Hitler, and Mao did was never the beliefs of Karl Marx. But the damage was done, and good enough to fool the masses.

Regardless if the true creation of the Feds was good or bad, we know today it had been more bad than good. While they may rage at communism and socialism, the unfettered capitalism they had fostered upon Americans and conned the world is no better.

Worse it destroyed the constitution, written in the blood of hundred thousands of our founding fathers, from generals to the foot soldiers, to give the next generation prosperity and freedom, of which none truly exists today as we stare at the staggering debts that had been chalked up, and owed to the Corporations and rich.

The Feds (conglomerate owned by the super rich) must be destroyed!

1. ) The Feds had controlled the nation by debts. It is only money. And money can be earned. That’s what the Feds and its cult members are after – money above all else. Solution: - give them the money, work our butts off, but pay them and let them sink into their hoard.

At most, it will take us all 6-7 years, along with other resource revenues to pay off such debts. If post war Japan can do it, so too can Americans. And Americans are much better than japs; after all, they did kick the japs’ butt in the 40s and humbled their emperor.


2.) Look into improving current technologies to light the fire of American Industrial might. During WW2, its factories scored the highest and fastest productivity that literally sank Germany with munitions and armaments products.

Today, there is no war, but there are human needs which would be revolutionized with improved tech. The cathode ray tube TV didn’t become obsolete because others wanted Plasma TVs. It saved space.

The 8 track tape player didn’t become obsolete because Mp3s were a fad. It save space was portable and could hold more songs that anything else.

Technology will never end, so long as we improved upon it daily. The only limit to tech is our minds. IBM had to eat their words in the 80s when portable home laptops became commonplace.

US created the highest amount of tech products. It came from the common masses. And it will continue to do so, as only in a democracy where questions are allowed, will tech evolve.

China might try, but their political system only stifle creativity. The tallest poppy often gets cut down there. The lead is in America’s hands and minds. It will create jobs.


3.) Reduce on imports, bite the bitter pill and do with simpler tastes. It will only be for 6 years, but it will free entire generations from the clutches of the Corporations.


4.) Go back to community roots of families, relatives and friends. Alone, we will never be able to succeed. The community will be our comfort and solace, with encouragement to win the fight for freedom.


5.) Rein in military spending. It will only be for defensive postures. Any foreign intervention will be done through intelligence agencies or international coalitions. Any other country that needs US protection in the form of bases must pay for such assistance.

Freedom of other nations can never be fought by others. It must be fought by the citizens themselves. No more foreign adventurism, noble as it is. Instead, let US be the role model of democratic and human rights, and teach other nations that responsibility that came with it.


6.) Disaster aids will be in humanitarian form and never in cash form, as it had bred more corruption than helping those who really needs it. Money would be better saved and utilized.

Once the debts are paid off, the institution of the Fed be removed by a popular vote. The govt will have sole rights to keep its own tax revenue with the current political check and balance measures in place. The rich will have to take its chances, just like anyone else, in an equal population.

These are only simple examples. I am no genius, but I do believe there are many more whom are geniuses out there who can come out with better solutions on removing the Feds and the rich from dictatorially controlling the lives of free citizens, making a mess out of it as evidently seen today.

If Fannie May is given this bailout, then they can consider my student loans paid in full. It's about time we start letting these mismanaged corporate entities die by the same hand that made them rich.

reply to post by whatukno

So, to the Right, corporate welfare is ok, but helping out the rest of us is just not acceptable? I can't wait for this vote, you will see who actually cares about you the taxpayer.

I was just going to say the same thing.

Great photo, by the way. Too bad it had to undergo censorship with the use of the "blur tool."

Didn't the FED just say they weren't going to print any more money? If Congress has to live within it's means, where will all these bailouts come from?

Originally posted by m khan
Didn't the FED just say they weren't going to print any more money? If Congress has to live within it's means, where will all these bailouts come from?

If the general public still had not woken up to this latest act by the Feds, and realize finally who is pulling the political/governance strings, I don't know what else will wake them up.

The Feds and the Corporations certainly are aware of the fierce backlash from the public, to deny them the distribution of taxpayer funds amongst themselves.

They, the few, are frightened by the masses. They have their own economic and social strategist, and know how the cards will fall if this situation goes on. They are only after money and power, nothing else. Human suffering is bullsh*t to them.

The Feds strike back.

Stop printing money, ( which would only devalue their holdings anyway) then the govt puppets will have to swing to their manipulated strings. To hell with the less priviledged, to hell with the unemployed, to hell with those who fall sick, to hell with the aged. They dont deserve to live if they cannot work as slave to bring wealth to the Corporation's obscene and insane cash hoard.

The Feds await the People's representative answer now. 3 ways it can go down:-

A. Share and work towards a common ground, live and let live. Prosperity will eventually return. A share of power, with proper and not corrupted check and balances, or

B. Americans and the world kneel before the mammon monarchs. or

C. Burn baby burn. Let everything burn to ruins. Let everyone die - the rich, middle class and poor. And from the remnants that survive, may a better phoenix arise from the ashes, to create a better world......

May the Feds re-consider. The ball is equally on their court. One wrong move and its game over. Which side the winner, only time will tell. May cooler and saner heads prevail.







[edit on 3-3-2010 by SeekerofTruth101]