Thread: Freddie/Fannie Bailout Imminent

Well folks, here it is. Bushie's bailing out Freddie and Fannie. Rumor has it, the gov is gettin' the conservatorship, they're going to fire all the top officials, and they're going to use LOTS of taxpayer money to help people restructure their loans.

Fannie Mae, Freddie Mac Bailout Near - TheStreet.com

The meltdown in the housing market is in my opinion a direct result of the trend toward deregulation that began in the Reagan years. When the regulations were dropped, the boys all got greedy and figured that a day of reckoning would never come. The behavior of various industries under deregulation--particularly broadcasting, finance, energy and transportation--illustrate just what happens when the "market" is left to itself.

I certainly think there can be such a thing as too much regulation, but we're so far from it that it will take YEARS to redress the imbalances that have developed since 1981.

Originally Posted by Buck Laser

The meltdown in the housing market is in my opinion a direct result of the trend toward deregulation that began in the Reagan years. When the regulations were dropped, the boys all got greedy and figured that a day of reckoning would never come. The behavior of various industries under deregulation--particularly broadcasting, finance, energy and transportation--illustrate just what happens when the "market" is left to itself.

I certainly think there can be such a thing as too much regulation, but we're so far from it that it will take YEARS to redress the imbalances that have developed since 1981.

Fannie and Freddie have nothing to do with alleged market failure. They are both government-sponsored enterprises.

The housing meltdown was created by government intervention, primarily by the easy credit policies of the Federal Reserve, as well as by the government push to give loans to minorities.

But nice try blaming the free market for the mess GOVERNMENT created.

Originally Posted by nonsqtr

Well folks, here it is. Bushie's bailing out Freddie and Fannie. Rumor has it, the gov is gettin' the conservatorship, they're going to fire all the top officials, and they're going to use LOTS of taxpayer money to help people restructure their loans.

Fannie Mae, Freddie Mac Bailout Near - TheStreet.com

I dont like Bush either but put blame where it goes Rep. Barney Frank (D) was the first to introduce a housing bill.

Bush was originally going to veto it until house dem's and some repub's pushed it on him.

Originally Posted by Defensor

Fannie and Freddie have nothing to do with alleged market failure. They are both government-sponsored enterprises.

The housing meltdown was created by government intervention, primarily by the easy credit policies of the Federal Reserve, as well as by the government push to give loans to minorities.

But nice try blaming the free market for the mess GOVERNMENT created.

You might do well to do some reading before you come in with your airy assumptions, Defensor. Freddie Mac and Fannie Mae are government chartered, not government sponsored. You could have looked it up yourself. My original point stands.

Originally Posted by Buck Laser

The meltdown in the housing market is in my opinion a direct result of the trend toward deregulation that began in the Reagan years. When the regulations were dropped, the boys all got greedy and figured that a day of reckoning would never come. The behavior of various industries under deregulation--particularly broadcasting, finance, energy and transportation--illustrate just what happens when the "market" is left to itself.

I certainly think there can be such a thing as too much regulation, but we're so far from it that it will take YEARS to redress the imbalances that have developed since 1981.

Yep. I think you're SPOT on. I'm seeing this too. And, I've been calling for increased Regulation, in certain specific areas. Oil, is one of them. Insurance, is another.

You are absolutely correct sir, what we're looking at here is an IMBALANCE in the way the government is supposed to work.

What these "free-market" types seem to want, is a world WITHOUT oversight. No checks and balances.

And, that is diametrically opposed to the way we do business here in the United States (as evidenced, first and foremost, by our Constitution).

There is no doubt, that capitalism suffers from the SAME problem as communism does: it's called "human nature". Things like CORRUPTION, will sink ANY system, yes?

And, that is human nature. You ALWAYS get corruption, and you ALWAYS get greed, and you ALWAYS get people who are trying to rip you off.

And, the people who do, are usually taking advantage of the law, in some way. And, since the government (read: the People) makes the laws, we also need to ensure that they're not being misapplied and there are no loopholes that people can use for nefarious purposes.

These are all part of the "checks and balances". Our government graciously ALLOWS corporations to operate on our soil. Read your Constitution: corporations have NO rights. ZERO. Zip, squat, nada. They need to be REGULATED, with the appropriate level of oversight and checks and balances. If they're sucking money out of our economy, like Big Oil is right now, we need to OVERSEE that, so they don't rip off each and every United States citizen.

Because they DO, and they ARE. Time series analysis shows that price drops ALWAYS take longer to reflect at the pump. These bastards are GOUGING us, and there is NO doubt about it. There's PROOF!!! So, how come our Senators aren't all over this, pushing this into our faces every minute of every day? Well, hm.... could it be, .... lack of oversight?

Originally Posted by Buck Laser

You might do well to do some reading before you come in with your airy assumptions, Defensor. Freddie Mac and Fannie Mae are government chartered, not government sponsored. You could have looked it up yourself. My original point stands.

Gotta love it when someone is so arrogant about being so wrong.

The technical term for Fannie and Freddie are Government Sponsored Enterprises (GSEs)

But nice try pretending to sound like you know what you're talking about.

Your "point" never stood in the first place.

Originally Posted by nonsqtr

Yep. I think you're SPOT on. I'm seeing this too. And, I've been calling for increased Regulation, in certain specific areas. Oil, is one of them. Insurance, is another.

You are absolutely correct sir, what we're looking at here is an IMBALANCE in the way the government is supposed to work.

What these "free-market" types seem to want, is a world WITHOUT oversight. No checks and balances.

And, that is diametrically opposed to the way we do business here in the United States (as evidenced, first and foremost, by our Constitution).

There is no doubt, that capitalism suffers from the SAME problem as communism does: it's called "human nature". Things like CORRUPTION, will sink ANY system, yes?

And, that is human nature. You ALWAYS get corruption, and you ALWAYS get greed, and you ALWAYS get people who are trying to rip you off.

And, the people who do, are usually taking advantage of the law, in some way. And, since the government (read: the People) makes the laws, we also need to ensure that they're not being misapplied and there are no loopholes that people can use for nefarious purposes.

These are all part of the "checks and balances". Our government graciously ALLOWS corporations to operate on our soil. Read your Constitution: corporations have NO rights. ZERO. Zip, squat, nada. They need to be REGULATED, with the appropriate level of oversight and checks and balances. If they're sucking money out of our economy, like Big Oil is right now, we need to OVERSEE that, so they don't rip off each and every United States citizen.

Because they DO, and they ARE. Time series analysis shows that price drops ALWAYS take longer to reflect at the pump. These bastards are GOUGING us, and there is NO doubt about it. There's PROOF!!! So, how come our Senators aren't all over this, pushing this into our faces every minute of every day? Well, hm.... could it be, .... lack of oversight?

Constitutional checks and balances have NOTHING TO DO with government regulating the economy.

Our government "graciously ALLOWS" people to incorporate? Sorry this was supposed to be a free country, not your socialist totalitarian dreamworld. Regulation destroys economies and is bad for everyone.

Originally Posted by Defensor

Constitutional checks and balances have NOTHING TO DO with government regulating the economy.

Well, in a theoretical world that might be true, but this is real life.

When you've got PUBLIC money funneling into private corps, then HELL YES, Constitutional checks and balances have EVERYTHING to do with regulating the economy!

Originally Posted by Defensor

Our government "graciously ALLOWS" people to incorporate? Sorry this was supposed to be a free country, not your socialist totalitarian dreamworld. Regulation destroys economies and is bad for everyone.

Read your Constitution: corporations have NO rights. Zero. Nada.

Regulation, is a necessary evil. Yes, it hurts. So, we only do A LITTLE of it, and only in the important places. Because, what hurts even MORE than regulation, is when everyone gets ripped off (like Enron for instance).

What is bad for EVERYONE, is when private corporations suck money OUT of the national economy, like Big Oil is doing now.

This is NOT supposed to be a "free" country - you're supposed to PAY YOUR OWN WAY, not sponge off the taxpayers. Yes?

Originally Posted by nonsqtr

Well, in a theoretical world that might be true, but this is real life.

When you've got PUBLIC money funneling into private corps, then HELL YES, Constitutional checks and balances have EVERYTHING to do with regulating the economy!

You mention the problem, yet your solution is to make it worse.

Read your Constitution: corporations have NO rights. Zero. Nada.

Regulation, is a necessary evil. Yes, it hurts. So, we only do A LITTLE of it, and only in the important places. Because, what hurts even MORE than regulation, is when everyone gets ripped off (like Enron for instance).

What is bad for EVERYONE, is when private corporations suck money OUT of the national economy, like Big Oil is doing now.

This is NOT supposed to be a "free" country - you're supposed to PAY YOUR OWN WAY, not sponge off the taxpayers. Yes?

The Constitution doesn't grant any rights. All it does is specifically limit the powers of government. We have freedom of association, and this includes in the sphere of business.

Corporations hurt everyone when government gets involved.

Regulation is evil, destructive, and UNNECESSARY.