Government Bail Outs?

[NeMont]

How many of you agree the bail out of Fannie Mae and Freddie Mac by our government? I cannot find any Constitutional basis for this, the Fed is basically putting the taxpayers on the hook to keep these two afloat. They have collectively lost $45 BILLION in market value since the end of 2007.

What do you guys think? Is any company "too big to fail"? What happens if these companies fail anyway?

This country is headed for big time trouble if we do not let the market force corrections: Regardless if you are facing forclosure on your house or you are a finacier on Wall Street watching your company evaporate.

Nemont

 

[202typical]

The same things were said when the Fed bailed out Dodge/Chrysler/Plymoth then the same thing was said when the Fed bailed out the S&l's.

I happen to agree with you that the market must be let alone to work.

Maybe the economic egg heads realise this is just entirely to big to let fail. I am only guesing as I am know economics genius, but maybe a failure of such a large magnatude could have long term devistating and irreversable effects to our economy and well as national security. I can only speculate, like I said I am no economics major.






"dude, nothing we can say will make us like as childish/silly as the rants you post. We HAVE posted the parts, you chose to ignore them. We get it, you like soldiers that sell out their fellow soldiers for political gain, and you hate or hold in contempt those that take a stand. We get that you manage to see NOTHING but bad in Republicans, and nothing put pure and honorable intentions from fellow limp wristed libs. We got it already, now move on."
(PRO July 3, 2008)

 

[MNHunter]

Too big to fail. I'm just glad I bought a butt load of shares on Friday. Made a nice profit. Isn't unbridled Capitalism grand?

"Whatever you are, be a good one."
- Abraham Lincoln

 

[NeMont]

Lot's of guys still shorting both stocks. Hope you loaded up and sold ASAP.

Nemont

 

[proutdoors]

Since when is a Government bailout capitalism? America started down this road many years ago and it just gets worse. The Government has NO business doing this with MY money, just as they had no business doing the other bailouts, including bailouts for natural disasters. If it isn't legal for me as a private citizen to demand such buyouts for ME, then it is NOT legal/right for the Government to do it either!

PRO

Define, develop, and sustain BOTH trophy and opportunity hunts throughout the state of Utah.

 

[NeMont]

LAST EDITED ON Jul-14-08 AT 03:55PM (MST)[p]


I think natural disasters is an area that Government exits for. Providing life saving measures and rescue is fine. Rebuilding New Orleans is stupid, paying billions for the massive pumps and levee systems in order for people to live below sea level is a classic case of government stupidity.


This bailout of Fannie Mae and Freddie Mac is much bigger then the loan guarantee given to Chrysler. The Fed is actually purchasing some stock and puttng taxpayer money at risk in an already shaky mortage market. They are handing out BILLIONS to companies that helped set up and fan the current mortage mess.

To quote Jim Rogers, CEO of Rogers Holdings ''They're ruining what has been one of the greatest economies in the world,'' Rogers said. Bernanke and Paulson ''are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.''

It is hardly "unbridled" capitalism.

Nemont

 

[huntindude]

I can see both sides of this, there is no right answer to it I'm affraid.

The question is are we better off to mess with the very principles that made us what we are, or should I say were finacially or invite a depression? if the banking debacle were left to sort it out on it's own as it should be we would almost surley end up with an economic disaster on our hands like few alive today have ever seen.

In the long run we'd probably be better off letting the chips fall and the idiots who got themselves in trouble pay the price, I just don't know if this country is up to the discomfort that would give for the next few years. like we've been doing for some time now lets just skate by for now and let your kids deal with it later, it's painless that way.

 

[NeMont]

HD,
The problem IMHO is that by intervening to this point we are simply magnifiying and prolonging the "pain". What would have been more tolerable today is much more painful in a couple of years.

I am not saying there should be no regulation of the banking industry or anything like that. I understand the need for government to protect account holders from banks. My problem is these two corporations, chartered by congress and privatized are the orginators and holders of alot of mortage debt that is bad. The leaders of both were willing partcipants in the fleecing of the great unwashed by disregard solid mortage underwriting and giving loans to people who should have been told no.

The cure will be worse then the disease. This bailout screws up the Feds balance sheet and further weakens the dollar. It ties the hands of the Fed as well. Where does it end?

Nemont