What have we done?? Freddie Mac reports 2Q loss, asks for $1.5B in aid

Raise the debt ceiling... hand out cash to to agencies that are leaking money like a sieve. It's ok if it's govt. controlled Freddie which shouldn't be govt. controlled at all!!!!

Government-controlled Freddie Mac requested $1.5 billion in additional federal aid Monday after posting a loss this spring. The mortgage giant also said Standard & Poor's decision to lower its debt rating will cause "major disruptions" in the home-lending market.

Freddie Mac said it lost $4.7 billion, or $1.44 cents per share, in the April-June quarter. It compares with a loss of $6 billion, or $1.85 per share, during the same quarter in 2010.

The government rescued McLean, Va.-based Freddie Mac and sibling company Fannie Mae in September 2008 after massive losses on risky mortgages threatened to topple them. Since then, a government regulator has controlled their financial decisions.

Fannie and Freddie own or guarantee about half of all U.S. mortgages and nearly all new mortgage loans. The mortgage giants buy home loans from banks and other lenders, package them into bonds with a guarantee against default, and then sell them to investors around the world.

Taxpayers have spent roughly $150 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates the final cost for rescuing the firms could go as high as $259 billion.

When will it ever !@#$ end?? They own half of the nations existing mortgages and just about all new loans. It just doesn't seem real to me.

There is no end in sight for Fannie and Freddie..

Washington-based Fannie Mae said Friday that its second-quarter loss widened to nearly $5.2 billion. It continues to seek loan modifications to reduce defaults. That compares with a loss of $3.13 billion a year earlier.

.

OOOF!!
www.breitbart.com...

I don't imagine this will go over well with the general public and I would have a hard time seeing Congress approve another bailout without serious backlash from the voters.

reply to post by kro32


"Serious backlash?" Like what? voting for whoever stapled the most bags of Lipton to their skull? Sorry, but the American voting public is as big a bunch of clowns as the morons they keep electing. Our definition of a "serious backlash" seems to be kicking out the stupid people, and bringing in vastly stupider people who yelled louder.

reply to post by kro32


I'm stumped because Obama wants more stimulus dough for his infrastructure proposal as well when approx $125billion from his last stimulus is still unspent. Perhaps it was spent and unaccounted for...

www.abovetopsecret.com...

Originally posted by TheWalkingFox
reply to post by kro32

 

"Serious backlash?" Like what? voting for whoever stapled the most bags of Lipton to their skull? Sorry, but the American voting public is as big a bunch of clowns as the morons they keep electing. Our definition of a "serious backlash" seems to be kicking out the stupid people, and bringing in vastly stupider people who yelled louder.

That may be but they will still be upset over this and more than likely just throw everyone in Congress out as they do on occasion. The voting public is nothing if not predictable. They react to current issues which is why our founders went with the electoral college instead of a direct election of the President.

They thought the populace was too stupid to make the right choices all the time. It seems you would agree with them.

reply to post by jibeho


Time to bite the bullet and cut em off or give them the money but insist of a total reorganization from the ground up with all current management fired and replaced by people picked personally by Ron Paul.

Originally posted by TheWalkingFox
reply to post by kro32

 

"Serious backlash?" Like what? voting for whoever stapled the most bags of Lipton to their skull? Sorry, but the American voting public is as big a bunch of clowns as the morons they keep electing. Our definition of a "serious backlash" seems to be kicking out the stupid people, and bringing in vastly stupider people who yelled louder.

You like to lash out at other people and their parties without ever revealing your deck of cards. Let me guess... Ralph Nader?

We've got problems in this country that have compounded over the last 15 years. What do you propose as a solution? Remember, we can no longer spend what we don't have.

Furthermore, Obama's new "gang of twelve" will be hand selected by the likes of career politicians like Pelosi, McConnell and Reid. Newsflash! None of them have anything to do with the Tea Party and they will be the ones who have been granted sole authority to pick those who will solve our nations debt problem by completely circumventing our nation's legislative process. How does that sit with you?

Seems more like Obama's 12 Apostles to me.

Bail-outs were a tragic mistake to begin with. Every business that was going under should have been allowed to sink.

This is what you get. Even though nobody reading this had any control over the decisions made, the USA is so corrupt that individual payouts are more important than the entire country.

At least everyone in control got rich in the process.

reply to post by jibeho


Ok you are way off the mark there. Please tell me how they are circumventing the legislation process? Last I heard they will offer a recommendation which the full Congress has to pass or else they have to redo it until it has enough votes.

Tell me how this is different than any other bill that get's submitted to Congress?

reply to post by kro32


I believe an educated public is a politically capable public.

I also believe there's an active effort to make the public dumber than dog snot.

Further, I believe it's working. We're a panicky herd, and we're easily stampeded by a largely monopolized media system that, unsurprisingly, heavily favors the same people trying to make us have the intellectual capability of warm tofu.

Just slap "-gate" at the end of something and watch the Americna public careen off a cliff. Especially if it involves nipples or penises, whoo, boy do we go crazy.

reply to post by TheWalkingFox


Yep pretty much agree with all of that.

Good point.

Originally posted by jibeho
You like to lash out at other people and their parties without ever revealing your deck of cards. Let me guess... Ralph Nader?

Nope. I consider myself a Democrat. A rather disappointed one, granted.

We've got problems in this country that have compounded over the last 15 years. What do you propose as a solution? Remember, we can no longer spend what we don't have.

There's plenty of fuel in the tank, it's just that the injection system is shot and it's spraying all over the place. Taken out of metaphor, we have plenty of wealth to work with; it's just that it's being grossly misallocated.

Furthermore, Obama's new "gang of twelve" will be hand selected by the likes of career politicians like Pelosi, McConnell and Reid. Newsflash! None of them have anything to do with the Tea Party and they will be the ones who have been granted sole authority to pick those who will solve our nations debt problem by completely circumventing our nation's legislative process. How does that sit with you?

Seems more like Obama's 12 Apostles to me.

Kro, of all people, schooled you on this before I got here. Work with that.

reply to post by TheWalkingFox


With all due respect i've never been schooled on this site

There is nothing to fear from this "Super Congress" it's just a lazy way of the members of Congress trying to avoid blame with the upcoming elections.

Originally posted by kro32
reply to post by jibeho

 

Ok you are way off the mark there. Please tell me how they are circumventing the legislation process? Last I heard they will offer a recommendation which the full Congress has to pass or else they have to redo it until it has enough votes.

Tell me how this is different than any other bill that get's submitted to Congress?

We are entering uncharted waters with this new super congress because they are set to follow the guidelines set forth in the debt deal legislation and not the constitution. Furthermore, any legislation introduced by this special congress will be fast tracked through our traditional congress. Basically, it is a simple up or down vote, with no debate or discussion and no possibility of amending the legislation at hand. The same way the debt deal sped through congress with no open floor discussion whatsoever!

I have no choice but to remain skeptical. This just is not right.

The Congress has the Constitutional authority to delegate their powers to whomever they choose which they do often as there is too much for them to do by themselves. Also this fast tracking just means it goes to the floor quickly and there is nothing wrong with that. I think every bill should be fast tracked.

And it's true that their bill cannot be amended but it will certainly be debated before it's voted on. During these debates, Congress will make known what issues they have with it and if they vote it down then this "Super Congress" will have to go back and redo it.

Now they will not resubmit the same bill again as their main goal is to get something passed. Therefore they will take into consideration all the problems that Congressmen have with it and try to find a way to incorporate that into the bill. This is the same thing that happens with other legislation. You keep changing it till you have the votes to pass it.

As far as these automatic triggers they are nothing to worry about as Congress has set them before and has either ignored them or changed the rules when they were "triggered" so they don't have to follow the rules they set on themselves.

The only thing this "Super Congress" does is at election time the politicians will be able to say nothing is getting done because this "Super Congress" cannot agree anything. It is nothing more than a scapegoat so these guys can avoid the blame that's coming.

reply to post by kro32


I certainly appreciate you optimism. I however am growing tired of holding my breath in hopes that our elected leaders will actually act on behalf of their constituents rather than their own personal and political interests while they meet behind closed doors.

Now is not the time to reinvent the wheel.

Give Fannie/Freddie more money??
We would be better off handing out $1000 bills at port-o-pots and having people whip their asses with it.


What a waste.

fanny and freddy need to be unwound sitting on over 2.5 trillion in assets and since the election of the potus have time and time agian been "bailed out".

heres the kicker the government owns and run fanny and freddy so each time they are giving themselves more money.

anything the govenrment touches dies thats a fact that has been proven time and time agian for decades.

when are people gonna wise up and end fanny and freddy and yeah "privatized" them and let someone else have their problems.

shouldnt be ours.

There's a family that moved in to an old run down farmhouse next to a relative. They bought the home for $30,000.

They got a mortgage somehow for $180,000. $30,000 paid for the house. They don't work and have been using the rest of the money to live off of for the last few years.

They are about out of money and are trying to sell the broken run down farmhouse for $180,000. They'll never sell it.




Multiply that family times tens of millions. There's why Fannie and Freddie are in trouble.

reply to post by kro32

reply to post by jibeho


Time to bite the bullet and cut em off or give them the money but insist of a total reorganization from the ground up with all current management fired and replaced by people picked personally by Ron Paul.

I say cut them off. No more scare tactics on how their bankruptcy will cause the sun to burn out. They have, with the help of Barney Frank, wrecked the housing industry and karma is about to catch up with them.

No more "too big to fail". No more politics of fear.