The Realist

How Much Are Fannie and Freddie to Blame?

dlaw, perhaps an economic course would do you well. You put the cart before the horse and can not let go of your cognitive dissonance about politics to take one second to see what you are staring at. Nothing the democrats can do is wrong for you. As long as your fascist Democratic leaders get power anything is fair to say regardless of how inane it is. I on the other hand hate all politicians, I can bad mouth Republicans just as well as Democrats.

The bankers did not stick the paper on Fannie and Freddie. Without those two institutions the banks could never have made this paper. How simple can this concept be and you still can't get it. Duh.

The CDOs were predicated on the fact that Fannie and Freddie could borrow at below market rates. If Fannie and Freddie did not exist these CDOs would never have been created.

Get a life dlaw, learn to look at reality instead of through your partisan prism. Your name reminds me of all our Democratic congressman who are lawyers and no absolutely nothing about economics.

How Much Are Fannie and Freddie to Blame?

Paul Krugman might be an economist but he is not a very good one. Marx was an economist too. Krugman is first and foremost a political hack, so anything he writes is subject to intellectual question.

Fannie and Freddie are actually the central point of this entire fiasco and Krugman needs to be dishonest about this intentionally or else he would be forced to lay blame on his lords the Democrats.

The list of Democrat big wigs that made tens of millions in salary and bonuses at these companies is endless. They were pets of the Democrats and basically a slush fund.

How sad is the net result that the Democrats are responsible for so much of this crisis and it is they who have framed the debate in the media and are forcing us to spend a trillion dollars to cover up their semi-illegal activities.

Short Financial ETFs: Watch Out for the Fannie/Freddie Effect

Sure SKF might be down today but lets get real, look at that graph, are you telling me that you really think the banks are worth as much today as they were in January when everyone thought things were going to be contained. After all the horrible news for nine months banks are actually up? All this signals to me is that the people running this market have no clue.

Paulson and Friends, Translated

These guys are all a joke. Although the bigger joke is that people continue to believe them. The way this transpired should warn everyone that things are really bad out there for all the financial institutions. Just a couple of weeks ago we were told by some banks that Fannie and Freddie were fine, that rallied the market. Now the fact that they are insolvent and bailed out by the taxpayer rallies the market. What gives?

As for Bill Gross, he is a pig. He bet the farm on a crappy investment and then looked to the tax payer to give him a great return so he can continue the fallacy that he knows what he is doing. The yield on all Fannie and Freddie debt should be re-adjusted to Treasury yields. If the government guarantees them then the yield should be the same as Treasuries. I wonder if Gross knew all along that he was specifically investing for a bailout, trying to make money on working Americans so he can get even richer? To make it worse he is actually quoted and parades around television giving his opinion. How come there were was no big bold text on the screen stating that Bill Gross has a majority of his holdings in this issue, would be wiped out if what he was suggesting did not get done and that he is a total scumbag?

Subordinated Debt Holders: Missed By the Bus?

Why shouldn't the senior notes take a haircut?

These investors got extra yield on the assumption that the government would guarantee their risk. If that is the case then the yield on this paper needs to be adjusted to treasury rate as they are not mortgage backed securities but really treasuries.

Why should dirt bags like Bill Gross make a mint on a horrible investment which I am now paying his excessive return.

GSE Bailout Likely Marks a Bottom in Financials

What makes you think that government intervention can stop free markets. With a waive of a magic wand real estate has hit a bottom. Oh please.

This is just proof that the one thing you need to have to work on wall street is a complete lack of economic sense. How can anything good happen from this? More importantly, if the financials don't hit a new bottom this month they eventually will because this action has moved the US that much closer to complete insolvency as a country.

Welcome to the mortgage business US tax payer. No one else wants to be in this business because those who were in it already stole all the money, all that is left is to put up money, so we are on the hook for it.

The headline should read, Hank Paulson transfers billions of dollars of tax payer money to Bill Gross because Bill and his friends bribed Hank with the most money.

Why I Finally Bought Fannie Mae

Are you serious? Wiping out the stockholders would be a failure in capitalism? Actually leaving them with any money would be a failure in capitalism. Our problem in this country is that we do not punish those who fail or commit illegal acts. The banks do not need more regulation, the people who ripped this country off need to go to jail. If people get in trouble for doing bad things then they are less likely to commit them in the future. Since bankers are never punished for their sins they keep doing them. Since idiotic investors think they should not be punished for their bad investments they keep doing dumb things like buying Freddie and Fannie. I will be covering my short when you are closing out your position for a major loss.

Great way to invest, praying for a bankrupt government to bail you out.

Fannie, Freddie and the Debt Rollover Problem

Thanks Michael, now I am officially depressed knowing that the government is going to take all my porfits from shorting Fannie and Freddie and use it to buy me the same stock I shorted. Is that like the government telling me I can't short those stocks or more like the government investing my money very poorly?