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View Full Version : Govt. Bailing Out FNM, FRE --PROTEST!




llepard
07-14-2008, 06:56 AM
The Government is bailing out Fannie Mae and Freddie Mac.

This is an outrage. Taxpayers paying for Government mistakes.

Franklin Raines the former CEO of Fannie Mae made $100 million on stock options by cooking the Fannie Mae books. He goes scott free, we pay the bill.

PLEASE, PLEASE, PLEASE write or call your congressman and senators and tell them this is an outrage!

It creates inflation. THE GOVERNMENT IS BROKEN.

Here is the link for Representatives.

https://forms.house.gov/wyr/welcome.shtml

Point out that it is actions like this that are causing us to pay $4.20 for gasoline.

I have also written an article on our unfair monetary policy.

A link to it is here.

http://www.thefreedomrevolution.com/component/content/article/6-articles/17-unfair-monetary-policy

scar
07-14-2008, 07:06 AM
It doesn't matter. They'll do what they want regardless if we protest or not.

My advice would to be to just start getting prepared..

Kludge
07-14-2008, 07:26 AM
Defeatism FTL.

SnappleLlama
07-14-2008, 07:35 AM
The Government is bailing out Fannie Mae and Freddie Mac.

This is an outrage. Taxpayers paying for Government mistakes.

Franklin Raines the former CEO of Fannie Mae made $100 million on stock options by cooking the Fannie Mae books. He goes scott free, we pay the bill.

PLEASE, PLEASE, PLEASE write or call your congressman and senators and tell them this is an outrage!

It creates inflation. THE GOVERNMENT IS BROKEN.

Here is the link for Representatives.

https://forms.house.gov/wyr/welcome.shtml

Point out that it is actions like this that are causing us to pay $4.20 for gasoline.

I have also written an article on our unfair monetary policy.

A link to it is here.

http://www.thefreedomrevolution.com/component/content/article/6-articles/17-unfair-monetary-policy


Hey! Would you mind if we used your letter for the Letters of the Revoltion project? We're trying to amass a significant number of letters and other writings related to the Revolution (check it out here: http://www.myspace.com/LettersotRevolution). We're trying to have everything published, and send all of the proceeds to a yet-to-be-determined organization, such as the CFL. This is entirely non-profit. In any case, thanks for the link!

constituent
07-14-2008, 07:41 AM
snapplelama


"invalid friend id"

constituent
07-14-2008, 07:41 AM
This is entirely non-profit.

commie.

speciallyblend
07-14-2008, 07:43 AM
grab your ky and enjoy.

SnappleLlama
07-14-2008, 07:45 AM
snapplelama


"invalid friend id"

ROFL! Thanks! I just edited the URL...I blame my lack of coffee!

*rushes off to refill mug*

Jeremy
07-14-2008, 07:57 AM
It doesn't matter. They'll do what they want regardless if we protest or not.

My advice would to be to just start getting prepared..

Don't be silly. A protest shows other people that there is a problem with it. It educates other people and makes them think the next time the government does something.

Drknows
07-14-2008, 08:02 AM
the economic collapse is coming sooner than we think. I don't know how they plan to pay for it we have no money. Expect prices to rise as the dollar falls even more.

Even though gas has went up we havent really felt the impact yet .

I predict stocks falling faster in the following months. And if we end up in another war overseas it will be a depression for sure.

acptulsa
07-14-2008, 08:03 AM
*rushes off to refill mug*

If I can rush off I don't need more. If I can rush off it usually means I've had enough and I'm headed to expel the stuff.

But I'm no threadjacker. I promise. Once, FRE and FRM were bureaucracies. Then they decided it would be fun to privatize the profits while still subsidizing the losses. They like that.

Just another chance to rig the game for the rich and further seperate the rich/poor strata.

Kalifornia
07-14-2008, 08:06 AM
sounds to me like its a good time to buy.

llepard
07-14-2008, 09:27 AM
sounds to me like its a good time to buy.

I wouldn't recommend it. They are both practically bankrupt. Now the government may preserve some equity value, but for what it is worth I am short both of them in size. I think they are donuts.

L

mczerone
07-14-2008, 09:38 AM
grab your ky and enjoy.

Send a bottle to your congressman.

"I would appreciate that you use a little lube if you want to continue to ram us in that hole."

mczerone
07-14-2008, 09:42 AM
If I can rush off I don't need more. If I can rush off it usually means I've had enough and I'm headed to expel the stuff.

But I'm no threadjacker. I promise. Once, FRE and FRM were bureaucracies. Then they decided it would be fun to privatize the profits while still subsidizing the losses. They like that.

Just another chance to rig the game for the rich and further seperate the rich/poor strata.

But Fran/Fred are "too big to fail." We can't let the losses actually hurt any bank, lets instead absorb those losses into our socialist government. Wait, what?

Its not about the "rich/poor strata" to the people. They are so far beyond "rich" that it doesn't matter to them about how wealth is distributed, just as long as they can keep making money off of other people's money, without having to do any honest work. And keep their circle of powerful friends to reinforce this horrible behavior.

mczerone
07-14-2008, 09:46 AM
I wouldn't recommend it. They are both practically bankrupt. Now the government may preserve some equity value, but for what it is worth I am short both of them in size. I think they are donuts.

L

with other "bailouts" as a guide, there should be a small rebound now that investors "are confident Fran/Fred are stable", probably back up to 50% more than the low. After that the price shall drop consistently until the remaining stock is worthless.

jarofclay
07-14-2008, 10:00 AM
Sent a letter to my rep. Bump this.

Kalifornia
07-14-2008, 10:03 AM
I wouldn't recommend it. They are both practically bankrupt. Now the government may preserve some equity value, but for what it is worth I am short both of them in size. I think they are donuts.

L

Im okay with that. I don't ever buy a stock that isn't in trouble, really. most times they recover. I feel sorry for those who bought at 50 though...

I suppose if I was sophisticated enough Id work both sides of this depending on the time frame.

I prefer to bargainn shop and hold though. mostly because im lazy.

Melissa
07-14-2008, 10:06 AM
Ok I don't write my congressmen unless I understand what I am writing them about.

Now with that said I understand a small bit of economics or trying to .... Just read Hayek book Economics in one Easy lesson but that is a far as I have got I really want to learn this subject so if someone wants to help so I can send my congressmen a letter that I will understand why this is bad besides the obvious that they would not bail me out so it is not fair in a free market.

nobody's_hero
07-14-2008, 04:48 PM
I don't really understand the whole situation either.

I did notice, in IndyMac's case, that the federal government's new definition of a "bail out" is to send the FDIC in to take over everything. IndyMac Federal Bank.

If the banks are going under as a result of poor financial decisions (loaning out to bad clients), and the FDIC steps in, that's bad. "Bail outs" are unconstitutional.

If the banks start to go under because the federal government is playing a very large role in destroying the value of our currency, and the FDIC steps in, that's really, really bad.

If they really want to discourage me from saving my money, let the establishment start talking about government run banks the way they talk about government-managed healthcare.

itshappening
07-14-2008, 07:49 PM
Larry, should we buy Gold in anticipation of the inflation

what can we do to protect ourselves?! you need to teach us! :D (i know you're not a financial advisor but you know a few things!)

Carole
07-14-2008, 08:53 PM
The Government is bailing out Fannie Mae and Freddie Mac.

This is an outrage. Taxpayers paying for Government mistakes.

Franklin Raines the former CEO of Fannie Mae made $100 million on stock options by cooking the Fannie Mae books. He goes scott free, we pay the bill.

PLEASE, PLEASE, PLEASE write or call your congressman and senators and tell them this is an outrage!

It creates inflation. THE GOVERNMENT IS BROKEN.

Here is the link for Representatives.

https://forms.house.gov/wyr/welcome.shtml

Point out that it is actions like this that are causing us to pay $4.20 for gasoline.

I have also written an article on our unfair monetary policy.

A link to it is here.

http://www.thefreedomrevolution.com/component/content/article/6-articles/17-unfair-monetary-policy
Sent my letter to my Congressman.

idiom
07-15-2008, 12:51 AM
F&F can't be 'bailed out' as such. They can only be nationalised. The government will control half of the mortgages in America.

Its that or foreclose on half of America, I bet that won't get protested.

nobody's_hero
07-15-2008, 04:40 AM
It still doesn't sit well with me. Government-operated banks.

Where's Mr. Yuk when you need him?

llepard
07-15-2008, 05:08 AM
Larry, should we buy Gold in anticipation of the inflation

what can we do to protect ourselves?! you need to teach us! :D (i know you're not a financial advisor but you know a few things!)

The Federal Government prohibits me from giving you investment advice. So, this is not investment advice. You must make your own decisions.

These are just facts. I have 5-10% of my assets in gold and silver coins. I expect gold to go to $5,000 (now 930) and silver to go to $100 (now $16). No guarantees. I don't see them lower. They are manipulated. See www.gata.org for more on that. They are insurance against a total dollar collapse.

My second largest position in my IRA account (safe money) is in ETF funds that will benefit from a declining stock market. This one is trickier. We are going to crash in the next 5 days. Then we are going to get a real bounce. IMHO. If you do them now, you need to be nimble. Otherwise, wait about a month or so and do them. I own RSW, RMS and RRZ. More information on these is available at www.rydexfunds.com. Other funds are similar. BTW, these funds are all 2x leveraged. eg: the market goes down 10%, these funds go up 20%.

Be careful out there and take a long term time perspective. Never put more than 20% of you assets in one idea. The coming bounce will cause these to go down. I would use charts from www.bigcharts.com to time when to get in.

Having said that, I am fairly highly confident that the stock markets are much lower by end of year 2008. Meaning these funds will increase in value.

FWIW.

llepard
07-15-2008, 05:14 AM
F&F can't be 'bailed out' as such. They can only be nationalised. The government will control half of the mortgages in America.

Its that or foreclose on half of America, I bet that won't get protested.

Agree.

But how about a different idea. Bail out the consumer, not the lenders.

Here is one proposal that an intelligent adviser is making:

Send every househould in America a $300,000 check. One time, tax rebate.

Then convert to a gold backed currency. So, one big inflationary hit. Then honest money.

Of course it will never happen but it is much fairer than rewarding the bad behavior of the politicians and FNM and FRE.

Mark
07-15-2008, 07:17 AM
Ok I don't write my congressmen unless I understand what I am writing them about.

Now with that said I understand a small bit of economics or trying to .... Just read Hayek book Economics in one Easy lesson but that is a far as I have got I really want to learn this subject so if someone wants to help so I can send my congressmen a letter that I will understand why this is bad besides the obvious that they would not bail me out so it is not fair in a free market.

I'm in no way an expert, but I'll try..

Where does the money come from to bail them out? You and I. The American taxpayer.

"Fannie-Freddie lifeline puts taxpayers on the hook"
http://biz.yahoo.com/ap/080714/mortgage_giants_crisis.html

~~~~~~~~~~~~~

And the money's that will be used is not just laying around, it has to be created out of thin air, which will increase the debt, inflation, and further weaken the dollar.

The dollar today has reached new lows against the Euro:
http://biz.yahoo.com/ap/080715/dollar.html

~~~~~~~~~~~~~

We're paying for their mistakes and mismanagement.

Fannie Mae (FNM) and Freddie Mac (FRE) have wasted money and rewarded bad management: (http://www.marketwatch.com/news/story/nlpc-blasts-fannie-mae-freddie/story.aspx?guid=%7B44A2D123-FBDF-4FB5-A17C-E964C8828438%7D&dist=hppr)

"NLPC was also critical of the incredibly generous "golden parachute" Fannie Mae provided to fired CEO Franklin Raines in 2004. At the time Flaherty said, "Let me get this straight. Raines apparently cooks the books, brings disgrace to the company, and imperils Fannie Mae's standing with regulators, the Congress and administration. So for his punishment he is made wealthy for the rest of his life?""

~~~~~~~~~~~

And add to that, Treasury Secretary Paulson may want Congress to give permission for the government to buy stock in the companies, which adds to our debt and exposure even more.

~~~~~~~~

http://www.bloomberg.com/apps/news?pid=20601087&sid=av8pcGLz4lr8&refer=home

Jim Rogers:

The U.S. Treasury Department's plan to shore up Fannie Mae (http://www.bloomberg.com/apps/quote?ticker=FNM%3AUS) and Freddie Mac (http://www.bloomberg.com/apps/quote?ticker=FRE%3AUS) is an ``unmitigated disaster'' and the largest U.S. mortgage lenders are ``basically insolvent,'' according to investor Jim Rogers (http://search.bloomberg.com/search?q=Jim+Rogers&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1).

Taxpayers will be saddled with debt if Congress approves U.S. Treasury Secretary Henry Paulson (http://search.bloomberg.com/search?q=Henry+Paulson&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1)'s request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac, Rogers said in a Bloomberg Television interview. Rogers is betting that Fannie Mae shares will keep tumbling.


``I don't know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,'' Rogers, 65, said in an interview from Singapore. ``So we're going to bail out everybody else in the world. And it ruins the Federal Reserve's balance sheet and it makes the dollar more vulnerable and it increases inflation.''


~~~~~~~~~~~~~~~~~~~

Yes, the world's economy is in big trouble, but the longer we put off the correction that is sure to come, the longer and deeper will the Depression be.

Financial corrections are natural and at times necessary, and that includes bankruptcies. All The Fed and Treasury are doing is putting the debt on our backs and forestalling the inevitable, which will make the inevitable worse.

And if the USA goes too far into debt, the country will go bankrupt.

Though, some people say that's what the "powers that be" want to facilitate the loss of our sovereignty and incorporation into global government.

~~~~~~~~~~~~

The Great Depression of 2008 (http://www.opednews.com/articles/The-Great-Depression-of-20-by-Marc-McDonald-080715-847.html)

http://www.opednews.com/articles/The-Great-Depression-of-20-by-Marc-McDonald-080715-847.html

Until last week, most economists were divided on whether the U.S. was in a recession or not. Now, with the ailing mortgage agencies Fannie Mae and Freddie Mac on the ropes, it's clear that what's unfolding is far worse than any recession.

As Britain's normally staid The Telegraph newspaper notes (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/14/ccmae114.xml), we could be on the verge of a new Great Depression. That might seem far-fetched until you consider that last month, the Dow suffered (http://www.theaustralian.news.com.au/story/0,25197,23950520-20142,00.html) its worst June since 1930....

...As MoneyWeek notes:

Fannie Mae and Freddie Mac might have been deemed too big to fail---but who's big enough to bail out the US? When investors start seriously asking themselves that question, expect the dollar to plunge.

Make no mistake, a catastrophic U.S. economic collapse is on the way. Such is the inevitable fate of any Ponzi scheme economy that has been running on nothing more than smoke and mirrors (and oceans of foreign capital) now for many years....

Cowlesy
07-15-2008, 07:22 AM
I just don't think we're "oversold" as everyone says.

I've stuck to my guns on SKF and if it cracks 200 today it's a Double for my portfolio.

llepard
07-15-2008, 08:37 AM
I just don't think we're "oversold" as everyone says.

I've stuck to my guns on SKF and if it cracks 200 today it's a Double for my portfolio.

Sweet. Me too. But be careful. We are getting close. I expect to cover all shorts within the next 5-10 days.

LWL

speciallyblend
07-15-2008, 08:45 AM
wish i had some money to put away sigh

New York For Paul
07-15-2008, 09:14 AM
Franklin Raines might be going to court soon. He still goes to all the parties in the Washington D.C. area.


Peter Flaherty, President of the National Legal and Policy Center, today expressed surprise and disgust at the current attempt by fired Fannie Mae Chairman and CEO Franklin Raines to walk away with millions despite his central role in the accounting scandal rocking the company.

NLPC promotes ethics in public life, and sponsors the Corporate Integrity Project.

Flaherty said, “Let me get this straight. Raines apparently cooks the books, brings disgrace to the company, and imperils Fannie Mae’s standing with regulators, the Congress and administration. So for his punishment he is made wealthy for the rest of his life?”

According to a December 27 Form 8-K filing with the Securities and Exchange Commission, Raines is entitled to:

•“Deferred compensation” of $8.7 million

•Stock options currently worth $5.5 million, and potentially millions more

•”Performance Share Payouts” through 2006, potentially worth millions more

•A monthly pension of $114,393 for the rest of his life, and the for life of his spouse should she survive him

•Free medical and dental coverage for the rest of his life, as well as for his wife for the rest of her life, and his children until age 21

•Free life insurance in the amount of $5 million until age 60, and $2.5 million thereafter

The agreement even allows for Raines to receive a “cash bonus” for 2004.

Raines stated that, “By my early retirement, I have made myself accountable.” Flaherty reacted by saying, “It is like Enron and Tyco never happened. I cannot even fathom the level of arrogance and self-delusion necessary for Raines to claim he’s been made accountable for his mistakes.”

Flaherty continued, “The OFHEO regulators have taken the right step in reviewing Raines compensation. But if Fannie Mae executives inflated profits to increase their own bonuses, that is fraud. Political connections should not insulate corrupt executives from criminal prosecution, if it is warranted.”

“This is not a case of foolish or captive directors rewarding a failed executive with a golden parachute. Fannie Mae is not really a private company. It has been granted advantages in the marketplace by Congress, that are worth billions of dollars. Raines is not only fleecing Fannie Mae, but also the taxpayer.”

“Raines was paid $20 million in 2003 but was never really a private-secter corporate executive. His CEO position was more of a political plum. Most of his career was spent in political appointments or at Fannie Mae itself.”


Here is the latest update on Fannie Mae and Freddie Mac blowing money on politics.

Fannie Mae and Freddie Mac Lavish Contributions on Jesse Jackson as Companies Near Collapse

http://www.nlpc.org/view.asp?action=viewArticle&aid=2603

mediahasyou
07-15-2008, 11:52 AM
I believe I predicted this here:

http://www.ronpaulforums.com/showthread.php?t=129599

Cowlesy
07-15-2008, 12:34 PM
Sweet. Me too. But be careful. We are getting close. I expect to cover all shorts within the next 5-10 days.

LWL

It's quite a pinball machine. Shorting Freddie/Fannie was all too easy today.

brandon
07-15-2008, 12:38 PM
It's quite a pinball machine. Shorting Freddie/Fannie was all too easy today.


Yea, and it is soon to be illegal...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPokh6La9.HY&refer=home


So did you sell SKF when it broke 200?

Cowlesy
07-15-2008, 12:42 PM
Yea, and it is soon to be illegal...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPokh6La9.HY&refer=home


So did you sell SKF when it broke 200?

Sold at $201

Glad I did because I think it's below 200 now

Mark
07-16-2008, 03:27 PM
Just another bunch of crooks We The People get robbed by.


"Fannie, Freddie spent $200M to buy influence"

http://www.politico.com/news/stories/0708/11781.html

HOLLYWOOD
07-16-2008, 03:50 PM
The Government is bailing out Fannie Mae and Freddie Mac.

This is an outrage. Taxpayers paying for Government mistakes.

Franklin Raines the former CEO of Fannie Mae made $100 million on stock options by cooking the Fannie Mae books. He goes scott free, we pay the bill.

PLEASE, PLEASE, PLEASE write or call your congressman and senators and tell them this is an outrage!

It creates inflation. THE GOVERNMENT IS BROKEN.

Here is the link for Representatives.

https://forms.house.gov/wyr/welcome.shtml

Point out that it is actions like this that are causing us to pay $4.20 for gasoline.

I have also written an article on our unfair monetary policy.

A link to it is here.

http://www.thefreedomrevolution.com/component/content/article/6-articles/17-unfair-monetary-policy

Government/Congressional PR SPIN... They are NOT bailing MAE/MAC out and Freddie/Fannie are just fine... They are bailing out the HOMEOWNERS or at least securing the Homeowner's Mortgages/LOANS.

***Typical SPIN Politicians... and the people now have resources at their fingertips to investigate ALL GOVERNMENT/BUSINESS SCAMS. No wonder all levels of government are passing, EXECUTIVE PRIVILEGES, IMMUNITIES, INSURANCES against FAULTS, ETC, for themselves and RESTRICTIONS and MARTIAL LAWS against the people.

Doesn't this give you all a HINT what this IRON LAW of OLIGARCHY is all about in AMERICA?

idiom
07-17-2008, 02:36 AM
Fannie And Freddie Were Created by the Government.
Fannie And Freddie are being killed by the Government.
The Government giveth and The Government taketh away.
Blessed be the centrally planned economy.

JosephTheLibertarian
07-17-2008, 02:46 AM
It doesn't matter. They'll do what they want regardless if we protest or not.

My advice would to be to just start getting prepared..

Pretty much. Not much that can be done. hmmm. Just have to get better candidates elected, that's all. I think we might have a few after this upcoming election.

Mark
07-17-2008, 04:47 AM
Great Bloomberg interview with Jim Rogers about the situation.

About 15 minutes long: http://www.bloomberg.com/avp/avp.htm?N=av&T=Rogers%20Calls%20Fannie%2C%20Freddie%20Rescue%20 Plan%20a%20%60Disaster%27&clipSRC=mms://media2.bloomberg.com/cache/vIQvD7yNni2I.asf


You can play this link directly in Winamp or Windows ect: mms://media2.bloomberg.com/cache/vIQvD7yNni2I.asf

A shorter Youtube - 9:36 : http://youtube.com/watch?v=vWa9AfkjwoY

HOLLYWOOD
07-17-2008, 08:28 AM
The Numbers are in:

As long as more homeowners default on mortgages, losses to financial institutions will mount. Those Losses already exceed $400 billion, and some analysts believe they will top $1 trillion before the housing carnage is over.

By comparison, Congress has authorized $650 billion so far to fight the Iraq war alone.

The Bush administration and the Federal Reserve announced an emergency rescue plan Sunday to bolster Fannie Mae and Freddie Mac, which hold or guarantee more than $5 trillion in mortgages -- almost half of the nation's total.

The plan would temporarily increase a long-standing Treasury line of credit that could be provided to either company. Treasury also said it would, if necessary, buy stock in the companies to make sure they have enough money to operate. <=== Love This MOVE! ;)

The Fed also announced it would allow Fannie and Freddie to get loans directly from the Fed -- a privilege previously granted only to commercial banks until this March, when the Fed extended the borrowing to investment banks to deal with the collapse of Bear Stearns.

JosephTheLibertarian
07-17-2008, 08:35 AM
The Numbers are in:

As long as more homeowners default on mortgages, losses to financial institutions will mount. Those Losses already exceed $400 billion, and some analysts believe they will top $1 trillion before the housing carnage is over.

ouch.


By comparison, Congress has authorized $650 billion so far to fight the Iraq war alone.

yup.


The Bush administration and the Federal Reserve announced an emergency rescue plan Sunday to bolster Fannie Mae and Freddie Mac, which hold or guarantee more than $5 trillion in mortgages -- almost half of the nation's total.

"emergency rescue plan" LOL. Gawd, I hate these people. That's why I try not to get myself worked up over this bs.


The plan would temporarily increase a long-standing Treasury line of credit that could be provided to either company. Treasury also said it would, if necessary, buy stock in the companies to make sure they have enough money to operate. <=== Love This MOVE! ;)

Unbelievable. Do either of these companies now submit to more gov regulation? I read that once a corporation takes handouts, the gov practically owns them from there on out.


The Fed also announced it would allow Fannie and Freddie to get loans directly from the Fed -- a privilege previously granted only to commercial banks until this March, when the Fed extended the borrowing to investment banks to deal with the collapse of Bear Stearns.

loan...or a grant? You see, Bush is just trying to patch things up until his term is up. What a piece of shit!

anyway,,,

Why do you change your font so much? I mean...how do you decide when to change the color? lol. Yes, this is sickening. Bailing out companies now? Buying out stocks just so that they can OPERATE? WTF. THIS FASCISM! Here comes MORE inflation. It seems like the politicians WANT to fuck the currency up, ever notice this?