As I read the news: The loss incurred is about $14 billion;
The federal government has proposal to pump about $200 billion to make it stable; in first phase amount would be about $100 billion, that also on need basis. 3 or 4 years back, one officer from FBI suspected something fishy, but due to shortage in man power in its economic offence wing, due attention were not paid. But, as I see, President Bush has taken the right decision to take over of this. -MP On Sep 8, 4:29 pm, VT Sean Lewis <[EMAIL PROTECTED]> wrote: > Republicans and McCain if things are going so well, > why the $5 Trillion Freddie Mac and Fannie Mae Bailout? > > The tax cuts should have gone to the middle class, > not the richest Americans. It is very clear that trickle down > did not work. > > It is very clear it is the American middle class who need the > help. > > It is very clear that after 6 years of the Bush Tax cuts the > 11 Million jobs and the prosperity Bush Promised these tax > cuts would bring never happened. > > The bottom line is that the Americans who will have to PAY > for this bailout will be the MIDDLE CLASS, because the > Republicans want to make the Tax Cuts to the Rich Permanent. > > Is this the change McCain talks about, because he supports > the Bush Tax cuts. > > Fannie, Freddie deal helps some borrowers, not all By J.W. > ELPHINSTONE, AP Business Writer > Mon Sep 8, 1:27 PM ET > > The government's historic bailout of Fannie Mae and Freddie Mac on > Sunday will be good news to homebuyers and some homeowners hoping to > refinance if it leads to lower mortgage rates, as experts expect. > > But for homeowners already behind on their mortgage payments, or who > owe more than their homes are now worth, the plan unveiled Sunday by > Treasury Secretary Henry Paulson offers little in the way of extra > relief. > > "The bailout will give the mortgage industry a stability that we > haven't had in a couple of years," said Rich Cosner, president of > Prudential California Realty. "But frankly no, it won't help > (struggling borrowers) to refinance." > > Fannie Mae and Freddie Mac play a critical and increasingly dominant > role in the mortgage market. The companies buy mortgage loans from > banks and package those loans into securities that they either hold or > sell to U.S. and foreign investors. That allows traditional lenders > like Bank of America, Wells Fargo and Washington Mutual to make more > loans. > > Together, Fannie and Freddie own or guarantee about $5 trillion in > home loans, about half the nation's total. But an alarming number of > those loans started going into default, draining the companies' > financial reserves and sending a chill through credit markets > worldwide. As investors grew more skittish, borrowing costs started > rising. > > By placing Fannie and Freddie into a conservatorship, the government > is promising investors that the companies' debt is as safe as the > Treasury Department's. > > While not a cure-all, the bailout is still a step in the right > direction, industry observers say. It will at least "keep the lanes in > the mortgage freeway open," said Greg McBride, a senior financial > analyst at Bankrate.com, possibly putting the market on the road to > recovery. > > If mortgage rates fall, that will attract more potential buyers into > the market, which, in turn, will help to prop up home prices, he said. --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
