Government may soon back troubled mortgage giants

News Type: Event — Seeded on Sat Sep 6, 2008 7:52 AM EDT

Article Source: Yahoo! News

business, federal-reserve, fannie-mae, freddie-mac, credit-crisis, government-bailout, us-tax-payer-obligation-s, yfederal-reserve-chairman-ben-bernanke

Seeded by replytoj001

WASHINGTON - The government is expected to take over Fannie Mae and Freddie Mac as soon as this weekend in a monumental move designed to protect the mortgage market from the failure of the two companies, which together hold or guarantee half of the nation's mortgage debt, a person briefed on the matter said Friday night.

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{"commentId":2793271,"authorDomain":"replytoj001"}

replytoj001

Fannie Mae and Freddie Mac lost a combined $3.1 billion between April and June. Half of their credit losses came from these types of risky loans with ballooning monthly payments.

While both companies said they had enough resources to withstand the losses, many investors believe their financial cushions could wither away as defaults and foreclosures mount.

Many in Washington and on Wall Street hadn't expected Paulson to intervene unless the companies had trouble issuing debt to fund their operations.

This summer, Congress passed a plan to provide unlimited government loans to Fannie and Freddie and to purchase stock in the two companies if needed.

Critics say the open-ended nature of the rescue package could expose taxpayers to billions of dollars of potential losses.

Supporters, however, argue the Bush administration had little choice but to support Fannie and Freddie, which together hold or guarantee $5 trillion in mortgages — almost half the nation's total.

Well, what can we say, what can we do???? The decision has been made; the taxpayers will bail out FM/FM.

Why not just set it all up where if you default on anything, we, your fellow tax payers will cover you.

I am tired of this.........where will all his "loan" money come from? O' that's right....from those of us that are not pay our fair share..........

replytoj001

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#1 - Sat Sep 6, 2008 8:00 AM EDT

{"commentId":2802042,"authorDomain":"csteffler-1"}

csteffler@hotmail.com

I for one have not read every comment here but most seem to say the same thing. WE ARE SICK AND TIRED OF BEING FU____! BY OUR GOVERNMENT. I have lost over 200K in real money from my retirement that I worked over 30 years for and scrimped and saved over this mess that a few greedy @!$%#s created. Anyone who thinks our government can do a better job of of running Fannie and Freddie that what these greedy ones in the private sector have doe are STUPD! Look at the mess our government has created else were, Katrina, IRAQ etc. Senator Phil Graham of Texas is responsible for the sub-prime mess. I say put this pig faced little weasel in jail with the A Holes that ran Freddie and Fannie and throw away the key! Who is going to bail me out and return my 200K loss from this mess. Yes I am not just mad I am fighting mad. DAMN THEM ENOUGH Is ENOUGH!! On Monday I plan to tell my employer to change my federal payroll exemptions to 25 so no tax will be withheld from my salary. I am making a stand I refuse to pay another red cent in taxes to this corrupt government, and call on all Americans to join me.

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#2 - Sat Sep 6, 2008 11:26 PM EDT

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U.S. Rescue Seen at Hand for 2 Mortgage Giants - NYTimes.com	The New York Times	Fri Sep 5	2
US government takes on big role in mortgage market	Associated Press	Fri Sep 5	8
Takeover of Fannie Mae, Freddie Mac likely	United Press International	Sat Sep 6	2
Obama, McCain call for changes in mortgage giants	Associated Press	Sat Sep 6	2
Fannie, Freddie blind to the bubble	Associated Press	Sat Sep 6	0

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Government may soon back troubled mortgage giants

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