• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

FOREIGNERS hold Fannie and Freddie Bonds

MoGal

Well-known member
Time to contact your congressional leaders and tell them NO to a taypayer bailout........ I'm tired of bailing out wallstreet and I sure as heck do NOT want to bail out China, Japan and the Cayman Islands.................

http://www.marketwatch.com/news/story/chinese-government-top-foreign-holder/story.aspx?guid=%7B347DF7BF-F0B7-48C9-A418-5A0B903D9F72%7D&dist=hppr

Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds
$376 Billion in Chinese Agency Bond Holdings Subject to Taxpayer Bailout Proposals According to FreedomWorks Analysts

Last update: 11:08 a.m. EDT July 11, 2008

WASHINGTON, Jul 11, 2008 (BUSINESS WIRE) -- As politicians call for taxpayer bailouts and a government takeover of troubled mortgage lenders Freddie Mac and Fannie Mae, FreedomWorks would like to point out that a bailout is a transfer of possibly hundreds of billions of U.S. tax dollars to sophisticated investors and governments overseas.
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."
FreedomWorks President Matt Kibbe commented, "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."
"A bailout at this stage would be the worst possible outcome for American taxpayers and mortgage holders, who have been paying a risk premium to these foreign investors. It would change the rules of the game retroactively and would directly subsidize the risks taken by sophisticated foreign investors."
"A bailout of GSE bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics."
SOURCE: FreedomWorks
FreedomWorks
Adam Brandon, 202-942-7612
[email protected]
 

fff

Well-known member
MoGal, it doesn't matter who owns these bonds. As of 2008, Fannie Mae and Freddie Mac own or guarantee about half of the $12,000,000,000,000 (twelve trillion dollars) mortgage market of the United States. If they go under, no matter who owns them, the ripple effects will be felt across the financial markets here in the US, then the world. They are the source of low/moderate interest home loans. The cost of owning a home will go up considerably, leading to much lower property values, leading to less weath for the homeowner. It's a scary situation. I think it's probably worse than we know and that the Fed and Treasury are trying to hold things together until after the November elections. Then the full effects of the conservative governing at it's best :roll: will be there for all of us to see. I can only hope there will be support for a serious investigation as to how the conservative Republicans drove this country into the hole we're now in.
 

aplusmnt

Well-known member
fff said:
MoGal, it doesn't matter who owns these bonds. As of 2008, Fannie Mae and Freddie Mac own or guarantee about half of the $12,000,000,000,000 (twelve trillion dollars) mortgage market of the United States. If they go under, no matter who owns them, the ripple effects will be felt across the financial markets here in the US, then the world. They are the source of low/moderate interest home loans. The cost of owning a home will go up considerably, leading to much lower property values, leading to less weath for the homeowner. It's a scary situation. I think it's probably worse than we know and that the Fed and Treasury are trying to hold things together until after the November elections. Then the full effects of the conservative governing at it's best :roll: will be there for all of us to see. I can only hope there will be support for a serious investigation as to how the conservative Republicans drove this country into the hole we're now in.

We have already showed you proof that Clinton was the one that signed the legislation that created this investment and commercial banking mess. Why do you not get it in your thick skull! Clinton changed the rules! How dumb can you be, even when it is put out in front of your nose you still do not get it! This is not speculation it is a matter of historical fact who was the president and who signed the legislation, and his name is CLINTON!
 

MoGal

Well-known member
Under the comments section on Mish's blog, one of the readers writes:http://globaleconomicanalysis.blogspot.com/
I just wish the american people would wake up ....... and while you're writing/emailing/faxing your letter to congress take a look at this web site who is exposing how "shorts" bring down companies and help create these fiascos... www.deepcapture.com......... WHEN do we stop putting taxpayers on the hook??? Good grief there are trillions out there and the media is totally silent about how many people are going to be wiped out on their pensions/401k's which will be coming up in the next six months............ if taxpayers are to be on the hook, then we need to tax the hell out of the profits made on the stockmarket.

--------------------------------

As for Paulson, he made close to $1 billion spanning a period during which the company he ran, Goldman Sachs, was helping Franklin D. Raines fraudulently show Fannie with over $100 million gain that was non-existent at the time. I'm guessing that Fannie was probably insolvent even back then.

"The result was a company whose managers engaged in one questionable maneuver after another, including two transactions with investment banking firm Goldman Sachs Group Inc. that improperly pushed $107 million of Fannie Mae earnings into future years." (from the Washington Post)

Remember this? "Raines took in excess of $100 million in salary and bonuses during his tenure. The only problem was that his compensation was based on Fannie’s performance and he and a couple of cohorts (with the help of Goldman Sachs) cooked the books to overstate the earnings. Not to put too fine a point on it, he lied about the company’s earnings to amp up his compensation. The upshot was that Fannie couldn’t even issue any financial statements for two years."

So now we have Paulson calling the shots for the GSEs. This is a classic version of "the fox guarding the chicken coop. I'll bet Mr. Raines could tell us a lot about his old crony capitalist buddy who is now Treasury Secretary, Mr. Paulson.
 

MoGal

Well-known member
Where does it say in the constitution that our government is in the housing business??? Has anybody figured out we're only in about the 2nd inning of this financial mess and its going to still be unwinding 5 years from now and everyone of these bailouts makes the landing just that much harder.......... IF we really need to bail out fred n fan then governmentize the CURRENT debt not PAST debts and sell current bonds ........ we're already 10 trillion in debt, where does it stop for the taxpayer?? When do you all get tired of it?? 20 trillion and 5 generations later or is it 50 trillion ??????????

WHY isn't the SEC investigating who shorted Fannie and Freddie and thereby stood to gain lots of $$$$ ... was it Lehman or who??

Bill Gross purchased distressed agencies at deeply discounted values. In so many words, Gross said the Feds would guarantee those securities, and that PIMCO (he and his investors) would get face value for them. This is exactly what is happening. The taxpayers will pay the PIMCO investors the difference between the factored price Gross paid for the mortgage backed securities and the face value. By all appearences, he's legally ripping off the taxpayers for billions.
 
Top