Feds to Bail out Fannie Mae and Freddie Mac

[EKYhunter]

Sound financial decision or corporate welfare? Opinions please......

[Texan_Til_I_Die]

From a purely personal standpoint, I hope the bailout works. I took a $40,000 stock hit on my portfolio last week from Fannie Mae.

[stevebeilgard]

fannie mae and freddie mac ARE NOT corporations as we know corporations. they are OWNED by the government. that's right, the government actually owns corporations. if they were private enterprise we'd jail their c.e.o's for mismanagement. frankly, i cannot think of a thing that the govt. runs properly.

[EKYhunter]

Steve can you show me a link or documentation showing that the government owns them? Highly unusual for the feds to move in at this point if they were already owned by them. Also seems odd that their stock would be publicly traded if they were government owned.

[ruttinbuc]

The feds did not bail them out. They gave their OK for the taxpayer to....:rolleyes:

[Texan_Til_I_Die]

Steve can you show me a link or documentation showing that the government owns them? Highly unusual for the feds to move in at this point if they were already owned by them. Also seems odd that their stock would be publicly traded if they were government owned.

The federal government doesn't own them now, although they did for many years. The current relationship is more like the one that the FDIC has with banks. The government is guaranteeing the loans that Fannie and Freddie make.

http://hnn.us/articles/1849.html

http://www.alliemae.org/historyoffanniemae.html

http://www.alliemae.org/freddiemac.html

http://www.time.com/time/business/article/0,8599,1822766,00.html

[wtnhunt]

The feds did not bail them out. They gave their OK for the taxpayer to....:rolleyes:

Sad and unfortunate truth right there.

The federal government doesn't own them now, although they did for many years. The current relationship is more like the one that the FDIC has with banks. The government is guaranteeing the loans that Fannie and Freddie make.

http://hnn.us/articles/1849.html

http://www.alliemae.org/historyoffanniemae.html

http://www.alliemae.org/freddiemac.html

http://www.time.com/time/business/article/0,8599,1822766,00.html

Have to kind of wonder how many fdic banks are in trouble again now and if this is not a sign of more trouble ahead. Seems back around 2001 or so alot of banks got in a bit of trouble.

Really on this topic, I have kind of mixed thoughts, the government did insure the banks, so they are responsible, however the banks did give the loans that they knew would be unable to be paid, which was wrong. Think everyone involved at all levels should be held accountable where they were responsible for approving loans that should never have been made.

[stevebeilgard]

The federal government doesn't own them now, although they did for many years. The current relationship is more like the one that the FDIC has with banks. The government is guaranteeing the loans that Fannie and Freddie make.

http://hnn.us/articles/1849.html

http://www.alliemae.org/historyoffanniemae.html

http://www.alliemae.org/freddiemac.html

http://www.time.com/time/business/article/0,8599,1822766,00.html


thanks, tex. i'm not smart enough to show the posts...:o:)