Yes folks, be prepared. BushCo is meeting with 'regulators' today to discuss the insolvency of Freddie Mac and Fannie Mae. Any idea who will be footing the bill on this?
From Bloomberg:
Fannie Mae and Freddie Mac, the two biggest providers of financing for U.S. home loans, fell to the lowest levels in 17 years in New York trading after a former Federal Reserve president said the companies may need a government rescue.
Fannie Mae tumbled as much as 24 percent and Freddie Mac slumped as much as 34 percent in New York Stock Exchange composite trading after UBS AG analysts said in a report today that Freddie Mac's decline creates ``challenges'' for the company's plan to raise $5.5 billion.
The end is nigh.
The companies, created to boost homeownership and promote market stability, own or guarantee about half the $12 trillion in U.S. home loans outstanding. In addition to those obligations, Fannie Mae has $831 billion in company bonds outstanding, while Freddie Mac has $644 billion, according to Bloomberg data.
Let's see, if the government has to cover the value of these properties, each of us will need to earn an extra $4866.21 to cover the value of the outstanding loans, which we then get hand over to whatever private interest buys out the rotting corpse of these companies when they finally do go under. Plus those private entities get full rights to the assets they are buying, at fire-sale prices.
Obama, McCain, and anyone else who listening:
Main Street built Wall Street, NOT the other way around. I am tired of my money going wholesale into the hands of private interests, only for us having to pay double when their policies of greed ultimately take us down.
Free market policies got us here, and I fully expect you to let them take us all the way down so Americans will get off their fat, uneducated asses and demand government look after the welfare of Main Street, not Wall Street.
Free market policies are making this happen, deregulation has been a disaster. How much longer until we act?