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Old 07-15-2008, 01:44 PM
 
576 posts, read 873,600 times
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Along the same theme as the other poster who is curious and just asking questions.

So what happens if Fannie and Freddie are allowed to go belly up? If Bear Stearns would've been allowed to go belly up? Any others that are teetering at this time?

Yes lots of people loose lots of invested money, I got that. But as things stand right now, the loss of money is being more widespread, and to the taxpayers, some of whom, didn't buy into those companies in shares, but yet are left holding the bag on the bailout.

I'm not being a smartarse, I'm really just curious, I would like to know.

So what happens if the feds don't bail out these big huge behemoths?

Just trying to learn.
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Old 07-15-2008, 02:01 PM
 
Location: Houston, TX (Bellaire)
4,858 posts, read 12,085,582 times
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No one would be able to get a mortgage which means houses would have to be either owner financed or 100% cash deals, which means good luck ever selling your house.
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Old 07-15-2008, 02:17 PM
 
Location: Heartland Florida
9,324 posts, read 24,252,214 times
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Quote:
Originally Posted by chris_ut View Post
No one would be able to get a mortgage which means houses would have to be either owner financed or 100% cash deals, which means good luck ever selling your house.
This would be a good thing, lower property values, less taxes and faster sales. Just pay cash like you do for a used car. That is, if you can get rid of the foreign investors.
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Old 07-15-2008, 02:56 PM
 
Location: Tampa Bay
1,020 posts, read 3,110,556 times
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Foreign investors have already gobbled up tons of US infrastructure. Newspapers, toll roads, resorts, land, mills, textiles, automotive, the list goes on and on.
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Old 07-15-2008, 03:05 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,151,127 times
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Why the Fannie Mae and Freddie Mac can't be allowed to fail. - By Daniel Gross - Slate Magazine
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Old 07-16-2008, 04:28 AM
 
Location: Los Angeles Area
3,306 posts, read 3,552,147 times
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Quote:
No one would be able to get a mortgage which means houses would have to be either owner financed or 100% cash deals, which means good luck ever selling your house.
This is not the case, there are many banks out there that keep the loans on their books.

Frannie Mae and Freddie Mac should go away, the government shouldn't be involved in mortgages. Frannie Mae and Freddie Mac were suggest to create affordable housing, but all they did was do the opposite.

Regardless, letting them collapse would be deadly for the economy. The would have to be slowly taken apart.
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Old 07-16-2008, 04:59 AM
 
3,853 posts, read 11,846,987 times
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Quote:
Originally Posted by chris_ut View Post
No one would be able to get a mortgage which means houses would have to be either owner financed or 100% cash deals, which means good luck ever selling your house.
People would still be able to get a mortgage but banks will adjust for the added risk premium. Less people would be able to get a mortgage.
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Old 07-16-2008, 06:15 AM
 
576 posts, read 873,600 times
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Ok, so maybe somebody can shed a little more light.

Tell me why the burden should now be on the taxpayer to bail out these big banks and brokerage firms when you consider the following.

These big brokerage firms and banks, ostensibly have America's best and brightest at their helm. And they are compensated as same.

These are the very folks that lead the charge in all this subprime mess which has sent this country's economy reeling. The ultimate liability lies at their feet. Them with the golden parachutes.

What is the incentive to trim the fat in these big companies, as the rest of us are having to do in this awful economy, where's their incentive to trim the fat, and I'm speaking specifically about the big multi-gazillion dollar salaries and perks, etc. Sure, they are laying off folks by the thousands but why aren't the heads rolling from the top? The very folks who are ultimately the big head honchos, who are the ultimate responsibility in all this?

What incentive do they have to change things, if the feds will step in (i.e., U.S. taxpayers) and bail out this mess.

Joe Blow Schmow Concrete company that's found themselves in an economic crunch, has to cut corners every which way they can to stay afloat.............or they are forced to close their doors. Not these guys, they go hat in hand, to the U.S. taxpayer.
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Old 07-16-2008, 06:22 AM
 
5,090 posts, read 10,037,427 times
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Quote:
Originally Posted by the_pines View Post
Foreign investors have already gobbled up tons of US infrastructure. Newspapers, toll roads, resorts, land, mills, textiles, automotive, the list goes on and on.

Yep, now to put differential tax rates on foreign held properties and bleed 'em dry.

tasty! Make the rate double, triple, wth, 10 X.

Of course, the folks in the US who have been instrumental in selling US out will fight this, so we will have to take them out, first.

Interesting times, ahead.
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Old 07-16-2008, 06:32 AM
 
Location: Great State of Texas
86,068 posts, read 74,627,262 times
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When times are good, people don't care what the government does but when times are rough eyes open and people question what has slowly been put in place.

The government has slowly changed to be run FOR the Corporation in case you haven't noticed. Parts of Glass-Stegal have been repealed and new loopholes put in place (Enron loophole) all approved by OUR government.

Even today with all the problems with Fannie and Freddie you can still get 0 down mortgages. You would think they would have tightened up the rules but they didn't.

We, the people let this happen. Look at voter turnout over the years..it has been dwindling. Only now that we are in trouble are people going out to vote.

Corporate lobbyists are now in every part of the government and ruling in favor of the very Corporation they left..the FDA is a very good example.
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