but nope the taxpayer did and you all are a bunch of crying babies that should lose everything.
NO, that is factually incorrect. The gov't did NOT bail out the GSEs, it bailed out the mortgage market. Unlike Lehman (which would die once the trust is gone and no one wants them as the counter party), the GSEs had NO such a liquidity/trust problem. Their liability and asset duration matched almost perfectly. They just could not write new business No one except the gov't could at that time. They could have easily gone into run off mode, just like MBIA. Just looked at MBIA shareholders, they are doing much better! MBIA had much more risky mortgage portfolio, Fannie and Freddie would have done just as well or better if the government had not done what they did.
The proper thing for them to do would be to set up a separate trust fund and have Fannie and Freddie manage it to support the mortgage market (for a fee of course). Then we would not be sitting here arguing who actually bailed out whom!
Even AIG shareholders are suing the government. AIG's problem was collateral calls. They only guarantee the most senior 50 cents on the dollar. So they never really lost much actual money. They could have fought the collateral calls in court for years and would have been fine eventually without gov't intervention. But Paulson needed to bail out Goldman, who was AIG's largest counterpart and collateral call issuer.
Look the government has NO MONEY without the taxpayer so I am really correct. Without government backing fannie and Freddie have big problems with liquidity in a soft market. Taxpayers should have never been backstops for investors to make money off of. investors and banks should be fronting their own risks and leave the taxpayer out of it. That is what's wrong and hopefully with a bi partisan effort to stop taxpayer abuse going forward will come quickly.
I agree with you in everything but tone. Fact is FNMA currently exists because of government intervention and fact is that the only reason these rock bottom prices exist is because of c-ship. But do you really think people who invested in FNMA should lose everything? Really? Don't be a flaming #$%$***.
Ouch Richey! Should the government had used tax payers to bailout Chrysler? Uncle Sam bailed them out and that bailout was needed due to poor management not government policy that enabled their demise.
F&F are different they have always been taxpayer backed by the government. Those other private companies should not have been bailed out with taxpayer money and it will always be considered a scandal of the Obama administration. The government had no business other than political reasons for votes to help out GM or any of the rest. Obama did it for the union voters. I think when the government sold their stock in GM the taxpayer lost only like billions still. Obama supports union thugs, gays, Muslims, Mexicans and Kenyans for votes.
So Gov should have let the Banks collapse? Not bailed them out at almost 0% interest? So you agree with corker that these two should be wiped out and then handed over to the same Wall street banks that frauded the loans and caused the mess in the first place..... Have you heard about FnF frauding on down payments, credit history, appraisals, and then selling them as AAA loans... Neither have I.... So who side are you on?
You guys have no credibility and are just pumping this stock . Fannie and Freddie should have never been on the backs of taxpayers to begin with. Banks should have been the bagholders or at least assumed more of the risk. The system was flawed and a new one must replace them.
nitwit, we are all taxpayers, and pay LOTS of taxes when we take profits (according to our schedules), so some of MY money was used for the bailout and most of everyone else's here...AND WE WANT OUR MONEY BACK, NOT BY STEALING, but by letting fannie and freddie loose....WE'RE ENTITLED TO IT!
now take a long walk off a short pier, you need to wash up