A Rescue Plan for Freddie Mac and Fannie Mae

IF MY BUSINESS FAILS, WILL THE US GOVERNMENT BAIL ME OUT? I THINK NOT. OUR TAX DOLLARS ARE WASTED ENOUGH. OUR GOVERNMENT IS TAKING CARE OF THE WORLD INSTEAD OF IT'S OWN. WE SHOULD NOT BE IN ANOTHER COUNTRY. WHY ARE AMERICANS SO STUPID THAT THEY CAN'T SEE THAT THE US IS BROKE. TAKING MORE OF OUR TAXES TO BAIL OUT A BUSINESS NO MATTER WHAT THE SITUATION IS REDICULOUS. I AM OUTRAGED!!!!!

Hey, Elizabeth. Just sit down and be quiet and take a lesson from financial professionals like William Ackman who has an ingenius plan. Please just report the news don't make up philosophical quick fixes that are fundamentally flawed, please.

It appears that this lady received her business degree from a socialist made cracker jack box

The best course of action is to simply place Freddie and Fannie in receivership and liquidate them in exactly the same manner as was done with the Resolution Trust Corporation in the early 90's when the S&L's went bust. This is the only logical course of action.

Why not let these mortgage instutions fail in the stock market? Already the question socialism and communism is coming up over this new attempt to bail them out. Like IndyMac which the FDIC saved Friday evening, why didn't the Treasury Department create an equilivant to save secure and save mortgage banks? I agree with Eric Bolling over the fact let the market work itself out; instead of a bail out on the issue. What will happen down the road when regional and local banks are affected?

The first signs that Fannie/Freddie were experiencing "irregularities" surfaced well over a year ago.. Who are the Congressmen on the oversight committee?? And, where have they been?? This is another disgrace for Congress.. The oversight committee members responsible should be dismissed and jailed ...

Our well managed govt. printing more of our fiat currency to help the well managed home loan/banking sector. Somehow i don't see this helping to strengthen the dollar. Maybe the govt. should just go after the few profitable industries the U.S. has left.

Apparently confidence is everything !

Or perhaps with cross-hairs on humor here a Rescue Plan for the FDIC

In follow up with IndyMac and others to follow- and let's face it - the run on deposits happened as a mere flippant remark apparently - reckless perhaps by a US NY senator. I promote a change of the title to A Rescue Plan for the Federal Reserve ?

For me at some point I might as well just get out the monopoly board.

Before Paulson starts giving away stock purchase infusions and loan gateways to the treasury ? Maybe it should be spelled out of the near 300 billion HERE as well -remember CountryWide and BoA have their 300 billion problem too ( hmm last I recall, Bernanke had 600 billion to play with for bailouts, 300 + 300 - hmmm Just why would such a LARGE amount of BAD loans be allowed to be treated otherwise ? I'd say if there was mal intent and some yayhoo was sitting around making billions off this ? prosecute - nail em to the wall. Someone - SOMEWHERE is responsible for rubber stamping those 260 billion in toxic waste that's hurting these two companies. Maybe spread over departments, or different time periods with full rotation of the employees -heh - jk. I question who signed on for this toxic waste that's now bobbing up to shore.

Wait a second How is it these two companies accrued 260 billion in bad toxic loan products ? Is there sane accountability being missed here ? who in their right mind bought or insured these loans ?

# Comment by Sarah Wright Jul 13th, 2008 at 3:41 pm Liz I can’t thank you enough for your brilliant analysis not just in this story, but in all of your coverage of Wall Street. Through your writing you have helped so many people lead better lives, be it the IRS, taxes, bad accounting at companies that investors should avoid, Congress’s wasteful spending. It’s clear you are a humanitarian, and a gifted one. You aim to protect. I applaud you, I have been a big fan of yours for years, I think you’re great. You are a beautiful person inside and out. Many thanks, and please keep these great stories, insights and analysis coming, we desperately need you! yeah, what she said.

Liz I can't thank you enough for your brilliant analysis not just in this story, but in all of your coverage of Wall Street. Through your writing you have helped so many people lead better lives, be it the IRS, taxes, bad accounting at companies that investors should avoid, Congress's wasteful spending. It's clear you are a humanitarian, and a gifted one. You aim to protect. I applaud you, I have been a big fan of yours for years, I think you're great. You are a beautiful person inside and out. Many thanks, and please keep these great stories, insights and analysis coming, we desperately need you!

next time the govt wants to send out $100-billion stimulus, it should be used to recapitalize the banking sector as that is where the source of pain resides. a well funded capital market coupled w/ smarter regulation will right the ship. but at the end of this, there will be a much needed discussion on the market distortion that govt plicies like the gse, the ethanol mandates etc. a sad state to be in nonetheless.

Great Article! We need more media outlets to bring us clear facts and real options to the financial struggles we are currently facing. When media outlets sensationalize in order to achieve ratings, it has a very damaging effect on the good of the country. We need calm thinking and then a rational response that will correct mistakes made. Placing blame and pointing fingers will not help the innocent Americans who are affected by the few greedy politicians and speculative investors who put us in this delicate and dangerous financial situation. The correct decisions will contain a lot of short term pain and there will be many innocent victims but long term the majority will prevail and come out financially more stable and a stronger country over all.

wha wha wha I guess down goes IndyMac no use of the borrowing window or too quick on the draw on the deposits. Amazing how one bad review cavalcades too. X is in trouble - now X IS in trouble. Run on deposits. Who's next ?

Did anyone see IndyMac today ? from marketwatch article: Regulators said the "immediate cause" of IndyMac's failure was a deposit run in recent days that began after a June 26 letter to the OTS and the FDIC from New York Senator Charles Schumer was made public. The letter voiced concerns about IndyMac's soundness. Gee one letter - one story one bank out of business Hope this senator doesn't have a list of banks he thinks are not so well off.

Hey Liz, What's up Alexis's comments say Currently Closed was just a few posts on Gates Creative Capitalism - odd no content regarding chances are Gates and Buffett combined make most aspiring billionaires the trailor trash they are. Materistic, hollow beans that will NEVER sprout. Always after the yacht. When they get the yacht they think then they will impress their friends - and then ? they get the yacht and they DO impress their friends. Either way, Gates work in the Bill and Melinda Gates Foundation, and Buffett's work on contributions after he passes away are excellent contributions to how we can really make the best of being in deep black cold space - so far to date the only known planet eh ? trailor trash - most everywhere seeking BMW's - summer homes - 'things' for desperate people. Oh well - Alexis's comments say 'closed' so I thought I'd post that over here, then maybe it will finding it's way back to there. In fact ? I wager 1 day of Gates compared to the running around of so many on wall street to make it appear as if they came out ahead - whether lucking out on a short, WHO knows.... I still say - Gates practices - Buffett practice what I support - which is RESPONSIBLE capitalism. I say beware your teleological commitment to the source of the almighty dollar - without that - you're living in a fantasy land. That Warren is giving away 38 billion ? to some degree ? of all places he said it, was on Fox Business to respond to 'why' with: 'It was never mine' now that is someone that understand the function and value of money in life, and not life in money.

Looks like a no win situation. I like your promo commercials they are running on FBC. You write great blogs and do very well on TV. Congratulations!

from article: "I don’t think we are headed for a calamitous nationalization of these two giants. " I still ask why not sell off - I find irony on offshored US home mortgages in any excess of say- HALF ? ya think ? all for what ? What WOULD the stock holders settle for ? Well- no Microsoft for this yahoo in this case. except the alternative - one big fat loan from the fed for what ? min ? 260 billion ?

One thing for sure 5.x trillion is desertly hillbilly money. for sure. indeed ? a mass equiv. to public debt in many ways ? making that 10 trillion now ON the books ? I just don't know. that's 4 to 5 OIF's according to budget predictions, maybe 3 to 4, if you don't skip the armor etc. so, everyone would ask, why again ? should I be even considered to pay for this ? and the answer is that you are (owen wilson tone of voice) it's that you're not. Still 5 trillion is a lot to even consider, I'm sure that's simply not an option in any sane world. Maybe rebundle everything with mineral rights if they're not included but I'm sure those ventures are included ? hmm Abu Dhabi has this 2.x trillion I read for investment in the US. 5 trillion ? Maybe they could get a deal, 33% on the USD - for 1.5 trillion cash in on say 1/2 of both companies combined or maybe a total buyout of one ? hmm... I mean to suggest approaching owning the US housing sector via these two offerings at crazy larry's low low prices today. You know the USD may still be pegged in the middle east, so Abu Dhabi can benefit I suppose approaching - but where is money like that ? that could just pour in, turn on those pumps of cash abu dhabi ? Who knows, maybe someone will say for one sake or another - we will pick up Freddie and the whole gang at the bus stop and then buy the whole bus. final price tag ? I bet a 50% score could be made either side. so what is it ? over $260bn written above in the article ? for toxic debt ? I don't know, I AM just waking up for the day and I to think if a buyer for the entire company could be found, foreign or not, problem solved if they bring real solutions. What would be wrong with having 1/2 of the US mortgages offshored in Abu Dhabi ? this would be in line with Saudi interests I observe to becoming the world's financial center. Maybe someone with even what ? 350 ? 400 billion tops in cash ? or able to buyout entirely ? why not, I wager plenty of solutions exist for sell offs of these companies. at HOW MUCH per share did I see ? $4 ? Sheesh, who might NOT be about saying, sure these two will resurface, count me in on acquiring as much as I can at Crazy Larry's basement prices. I don't offer brokerage services but if I did, calling them Crazy Larry's basement prices might create the perfect snow storm for a new client to be who will be investing more than they may have considered. When they walk out ? Crazy Larry's will have the deed to the home etc. Now, replace Crazy Larry's with what you want. the buyer of this 260 billion USD ? eh ? Does this mean nastyburger unload time at the fed ? to IT taking over this debt ? article said 2.5 billion pipeline into the blah blah.... 260 billion though is a different scenario I bet hmm - what ? loan services will be used heh - but drawing 1/4 trillion USD debt in loan product ? just to cover the toxic debt. hmm

Hearing the sound bites in the interview here on this subject Ms Macdonald makes me think I'm watching Chris Walken here ! "Yikes" "Ouch" "Skyrocketing" Good stuff though, these two are in trouble - with the sub prime. How to buffer against the waste. I think you're on the money to stop and check this scene out ! But I think the resets coming is still the hottest subject out there.

Did you say 260bn ? Wow - if I could potentially owe 260 billion and have at MOST ? 60 billion around to cover my debt ? well, I wouldn't. spells bad news. I don't expect Merril OR Citi will have good news. When Citi sold off their student loan unit 2 months ago - I thought, ok, if they sell off Citi Financial next, they're goin' under. So far no Citi Financial to my knowledge. That's their nastyburger sub prime unit, you see them in strip malls. The push CRA, they give 35% loans to people who can't afford them. Just an evil company, Citi. If Citi comes out and announces an earning loss, and has to go under, good riddance.