Helicopter Ben Bernacke!

LunaToon · Helicopter Ben Bernacke!

Our esteemed government has decided to bail out Fannie & Freddie Mac. Now this sounds like they are "saving" us once again, or at least thats what they want us to think. Helicopter Ben to rescue with more money. OUR money. Which in and of itself is bad enough until you understand that Fred & Fannie are NOT government owned banking entities. They are privatley held by.................drum roll please.................

Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds.

"The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury's most recent "Report on Foreign Portfolio Holdings of U.S. Securities."

"The prospectus for every GSE bond clearly states that it is not backed by the United States government. That's why investors holding agency bonds already receive a significant risk premium over Treasuries."

So again you, me, your kids, your grandkids are left holding the bag. I think it's horrendous that the taxpayers have to bail these foreign governments because all they saw was a way to get richer and now that they didn't Bernacke fly's in to drop more taxpayer money to save the day. Money mind you that we don't even have. I suppose they will just crank up the printing press again. And next week our dollar will buy us even less.

I have no idea how our country got into this mess and I have no clue how we are going to get out but at some point you would think some one would be able to stop this insanity.

Okay, rant over. We're just screwed! Either that or we all need to figure how how to get ourselves into debt in the trillions and then "we" can get a free pass on all of our debts!

I need to rest now.
Cheers
LunaToon

Brianzz

There wouldn't be problems with fannie or freddie if they hadn't been making loans to risky people. You can't loan 250k to someone making 6.25 an hour at Pizza Hut and expect to get it back

LunaToon

Exactly! Brian, you know this, I know this, everyone but the banks doing the loaning. I'd like to know where all the money went when they made these loans, you know, the down payment, the "points" the loan fees, I suspect all that money went into someones pocket "cayman island" perhaps..........no tax liabliity, and now that the dumbasses see that these loans will never get paid back, they cry to the taxpayer.

Gee, if all these loans were good and they made buckets of money do you suppose we would have got to share in the profits like we are getting to share in the bail outs??

Today it only gets worse. FDIC says there will be "hundreds" of bank failures. We're on a roll!

Cheers
LunaToon

Brianzz

OK, you're telling me that none of these loan officers at these banks were bonded or insured? Honestly someone should go to jail for all these bad loans and it should be the loaners (the people who made the loans).

Banks have long given bonuses to loan officers that "get" business, so what would stop a shady loan officer from calling up 40 friends, knowing they're risks, and telling them to stop by and pick up a mortgage loan, after all they weren't verifying income or anything else for that matter. Come on by and get some money, you don't even have to pay it back, and if you're really slick we'll just refinance what you got now for some "home improvements" and you can pocket the money and let your house fall in... we'll just take your house after you miss 10 payments but you'll have almost a year to live for free and most likely the house wouldn't be worth 1/3 of what we loaned you to start with... just make sure you leave my cut in a plain unmarked envelope on the park bench Tuesday at 4:30.

The banks really don't have anyone to blame but their own people, if they had done their jobs in the first place and verified income and used the credit scoring system for what it was developed for, we wouldn't be in this mess to start with.

Jean

When you see these 4000 sq. ft. homes with no furniture in them or the furniture is rented. You know they didn't have the income for a loan at that price range. Like you all I don't think the banks have any one to blame but themselves.
I put the credit card companies to blame also. They do the same crap....easy plastic to people that can afford the debt the least.

LunaToon

I wouldn't be surprised to hear somewhere down the line that a lot of these banks had been "looted" a la Enron. Enron was probably a drop in the bucket compared to what it coming down the pike in the next year or two. I too hope the culprits are prosecuted but I sincerely doubt they will be. These banks are too interconnected and by exposing the fraud we admit to the world we are incompetent at policing ourselves and our economy.

They will protect the guilty and we will pay for their greed. The only good I see coming out of this mess is that people might now take a harder look at what we do with our money. And who we trust and how we handle our debt in the future. Sad times ahead but we are tough and we will somehow come out the other side smarter!!!!

Cheers
LunaToon

LA

Unscrupulous bankers - I could be here all day if I wrote about what I've seen.........and experienced.

Luna - As you know, we've been house hunting lately and have looked at a bunch of properties. I have been totally amazed at how many nice new homes, and I mean very nice homes that are still occupied, have little to no furnishings. Maybe just some hand-me-down things. The essentials and that is it.

Georgia Mel

I've got to throw in my 2 cents worth regarding credit card companies. A good friend of mine's father recently passed away, and she had to go try and dig her mother out of the mess that had been made by the 25 or so credit cards her parents had acquired. She couldn't believe how many credit cards had been issued to her mother, who has never had a job, and who's only source of income is some $1000 a month of social security. I had no idea they would really issue cards to these people who had no way of paying off the debt. Boy were by eyes opened......

Kim

I was 21 or so, had been in college for about a year, dumb as a rock to credit cards...or any type of money for that matter. I went to college full time and I worked part time, 3 hours a day, at an afterschool daycare. It was all I needed, it payed my car payment , my insurance and my gas. One day I answered the phone. It was a credit card company wanting to give my mom a credit card. I explained she wasn't home. They said what about you, we can give you a credit card with a $5000 limit........I just laughed and told them I made only 3000 a year. I thought it was too funny, so i played with them...sure send me a credit card ...here is all my infomation.....I will have you know they sent it...right along with that 5000 credit limit......It scared me to death when I got it in the mail....I hid it...lol...and would not carry it....It still boggles my miind a company would send a credit card to me who didnt even make that much money in a year.....ridiculous

That's my testimony...lol

Kim

Brianzz

You're lucky they waited till you were 21, they get most people when they're 18