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Kurr
1000+ Penny Miser Member
2906 Posts |
 Posted - 07/14/2008 : 07:24:46
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Excerpt:
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WASHINGTON (MarketWatch) -- The implicit government guarantee of Fannie Mae and Freddie Mac is now explicit.
"In a dramatic statement released Sunday, the White House and Federal Reserve moved to give the mortgage giants the capital they need to survive the depression in the housing market and turmoil in financial markets that had left them dangling over a cliff.
Of most immediate importance, the Fed's board of governors voted to open up its emergency discount window to Fannie and Freddie.
In addition, Treasury Secretary Henry Paulson announced that he will seek congressional authorization to buy stock in the two companies and increase the government's credit line.
At the moment, each company may borrow only $2.25 billion.
In return for the capital, Paulson said that the Bush administration would ask Congress to grant the Fed a "consultative" role in the capital standards of the companies.
The housing rescue package that is nearing final approval by Congress would put in place a strong independent regulator for the companies is slowly moving through Congress. Paulson says he wants a new provision allowing the Fed to work hand-in-hand with the new agency.
That would be a bitter pill for Fannie and Freddie, which have been at loggerheads with the central bank over the capital issue for years.
It is not clear how Congress will react to Paulson's request. The Treasury secretary said he has been in close contact with the Congressional leadership over the weekend, so his request will not come as a surprise to lawmakers.
It would be logical to attach the lifeboat for Fannie and Freddie to the housing rescue measure.
The Senate passed its version of the legislation last week and sent it back to the House of another vote. It is expected to get to President Bush for his signature before Congress leaves town for its summer recess at the beginning of August.
The House Republican leadership vowed to put politics aside to craft legislation. "
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The silver [is] mine, and the gold [is] mine, saith the LORD of hosts. Hag 2:8 [/b]
He created it. He controls it. He gave it to us for His use. Why did we turn from sound scriptural currency that PROTECTS us?
KJV Bible w/ Strong's Concordance: http://www.blueletterbible.org/
The book of The Hundreds: http://www.land.netonecom.net/tlp/ref/boh/bookOfTheHundreds_v4.1.pdf
The Two Republics: http://www.whitehorsemedia.com/docs/THE_TWO_REPUBLICS.pdf
Good reading: http://ecclesia.org/truth/government.html
A number of people are educated beyond, sometimes way beyond, their intelligence. - Tenbears
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n/a
deleted
32 Posts |
Posted - 07/14/2008 : 19:54:41
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quote:
Originally posted by Kurr
WASHINGTON (MarketWatch) -- The implicit government guarantee of Fannie Mae and Freddie Mac is now explicit.
If we, the people, are going to bail them out, we, the people, should own and operate them, as we originally did.
What the bankers and politicos are planning is propping up (more) private corporations with our tax monies, and the tax monies of future generations. |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 07/14/2008 : 21:27:39
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I don't like it anymore than anyone else, but what would you have them do?
You let them fail and it likely would be crap hitting the fan. The problems were caused long ago. Blaming the current session of government for the mistakes of our father's and grandfather's government isn't really fair.
The question is do they make it clear that this mess wont happen again and start to undo past mistakes? I highly doubt.
Tomorrows menu: Socialism and Inflation with a red, white, and blue capitalism dressing served on the side. |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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White House, Fed will rescue Fannie, Freddie
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