What Fannie and Freddie May Cost Taxpayers

corperation bail out

I feel that all the assets (ie. salaries, bonuses, stocks and bond), homes, cars, yahts, clothes, furniture, jewelry, credit cards, aircraft, big screen tv's, that the Fannie May and Freddie Mac excutives,from managers to CEO's should be seized by the goverment, and sold to bail out homeowners that are under forclosure, and they should have to live on minimum wage just like the rest of us.

the goverment should make all the home loans that these companies have interest free for the life of the loan.

and with no mortagage insurance requirements

E.R. of KS @ Sep 09, 2008 19:58:46 PM

It is a shame that our beloved government is throwing us to the lions, like the Romans,but the difference is that these are financial lios, like Bear Sterns and Goldman Sachs, etc.

I have not seen in any communist country the magnitude of corruption and thievery that is happenig in the great USA.

We are way overdue another Boston Tea Party!

Wake up good people of America! And down with Fannie Mae and Freddy Mac!

John Balasa of VA @ Sep 07, 2008 21:16:00 PM

"...we should NOT be weirded out by the idea" OF BAILING OUT FANNIE MAE AND FREDDY MAC?!?!?!

"...we should NOT be weirded out by the idea" OF BAILING OUT FANNIE MAE AND FREDDY MAC?!?!?!

1. You should be very weirded out by the likely prospect that these two financial institutions are insolvent and have $5.3 Trillion in LIABILITIES that each of us (and our children, and our children’s children…on and on) is now potentially liable for.

2. This is NOT a credit risk – The value of the “assets” have already plummeted. We would have a risk if there was a risk of the value of the assets falling. It has already happened. These assets have depreciated already. Paulson wants to move this trash to the personal balance sheet of every American and make him or her pay dearly for the risky choices made by the millionaires that run Freddie and Fannie. He wants to bail out these criminals who made millions in bonuses and stick us and our children with the bill. He was the CEO of Goldman Sachs and it is “funny” that this research note came from Goldman Sachs.

3. I don’t follow the logic here. So, the government explicitly has some guarantees’ in other sectors of the economy. With these GSE’s the guarantee was implicit and not explicit – not a guarantee. But the point that the government has some guarantees, so we should as taxpayers absorb all the losses for Fannie and Freddie escapes me. Is the point here that the government has guarantees with other entities that could be far more disastrous so this bailout is not that bad?! I’m not sure what the author is trying to say.

4. Half a percent of the Gross Domestic Product of the United States IS a big number. Besides, regardless of the number – I do not want to pay for the bad bets others made to enriched themselves by millions, while I as a father of two small kids can’t afford a place to live.

Scott Heyman of CA @ Aug 13, 2008 21:27:48 PM