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Old 07-11-2008, 07:50 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,175,011 times
Reputation: 6374

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Government might bail out Fannie, Freddie - Mortgage Mess - MSNBC.com (broken link)

I'm wondering how much I'll end up paying for this.

Argh. This sucks.
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Old 07-11-2008, 08:04 AM
 
Location: Texas
4,933 posts, read 6,978,708 times
Reputation: 5506
The Fannie and Freddie doomsday scenario - Jul. 9, 2008

I prefer this article. This is what got the street in a selling frenzy. Worse case scenario, they go belly up, housing prices further decline, and they bring some investment banks down with them, and we have a run on the banks like you haven't ever seen before bringing us to financial armageddon.

What is likely to happen is that the Fed, treasury, and some private equity will come up with a plan to bail them out this weekend, similiar to what happend to Bear Stearns. Expect futher depreciation of the dollar, more downside to financials and the broader market in general, and a major rally in gold (which I see going to $1200 if not more by the end of the year, depending on how much more the financials come crashing down.)
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Old 07-11-2008, 08:39 AM
 
Location: Great State of Texas
86,068 posts, read 74,801,293 times
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I think the government will step in and nationalize them and take on all that housing debt. We will end up paying.
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Old 07-11-2008, 09:00 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,175,011 times
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Stocks tumble amid Fannie, Freddie fears - Stocks & economy - MSNBC.com

Yeah, market dropped 170 points...which ain't much...but is still a drop....on the news.
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Old 07-11-2008, 11:15 AM
 
48,509 posts, read 86,217,482 times
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The estimate I have seen is that of those that qualify 35% will go into foreclosure again.
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Old 07-11-2008, 11:16 AM
 
Location: Olympus Mons, Mars
6,329 posts, read 9,117,857 times
Reputation: 6691
the taxpayer will pay, who else do you think will?? There IS nobody else!

they will print the money in the billions or trillions whatever it is, as a consequence of increasing the money supply by this much the currency will drop like a rock, that means the cost of everything increases more.

As it is people are reeling from rising prices, what will happen if costs would increase another 20-30%? It would be devastating!

Our government, in it's infinite wisdom tried to manipulate the market by artificially low interest rates and lack of lending oversight preventing a natural correction that should have occured years ago, this is the reason we are in this mess. Now things have become out of control. Even now, they are refusing to acknowledge that they need to raise interest rates immediately as was done by Paul Volcker in the 80s. Sure, it will be painful, but we can pay a price now or risk total meltdown later which will be devastating. The truth is we are WAY PAST the point of trying to resusitate this economy, the government should back out of the whole thing and let the capital markets self-correct.
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Old 07-11-2008, 11:53 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,175,011 times
Reputation: 6374
What happens if the U.S.'s credit rating is shot to hell? I don't think I really want to know that, do I?

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Old 07-11-2008, 01:17 PM
 
Location: U.S.A.
90 posts, read 194,917 times
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Quote:
Originally Posted by 70Ford View Post
What happens if the U.S.'s credit rating is shot to hell? I don't think I really want to know that, do I?



Originally Posted by 70Ford
What happens if the U.S.'s credit rating is shot to hell?


Things will get bad really fast in the U.S..

US, Germany, France and UK face junk debt status
By Päivi Munter in London
Sunday Mar 20 2005 10:52
FT.com - US, Germany, France and UK face junk debt status
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