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"Fannie & Freddie Are Back; Bigger & Badder Than Ever" - NYTimes Warns
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
Just in case you still harbored any doubt that absolutely zero lessons were learned from the cataclysmic financial collapse of 2008/09. We learn from the New York Times that:
AFTER the financial crisis of 2008, there was one thing that almost everyone agreed on. The government-sponsored mortgage giants, Fannie Mae and Freddie Mac, had to go. While shareholders and executives reaped the profits from Fannie and Freddie in good times, taxpayers were stuck with the bill in a crisis. President Obama described their dysfunctional business model as “Heads we win, tails you lose.” But here we are, seven years after the crisis, and nothing has changed.
In the 2008 crisis, when it looked as if Fannie and Freddie might go bankrupt, Henry M. Paulson Jr., then the Treasury secretary, argued that their fall would cause economic catastrophe. Foreign investors, stuck with their securities, would panic, and the mortgage market would shut down. So Fannie and Freddie were put into something called conservatorship, and are now government controlled, supported by a line of credit from the Treasury.
Conservatorship was supposed to be temporary — a “time out,” according to Mr. Paulson. We were going to stabilize the companies’ finances, reduce their importance to the mortgage market, and figure out a better system. But nothing happened. In fact, the situation has gotten even more precarious. In the years since the crisis, private lenders, for the most part, have been willing to make mortgages if they can immediately sell them to government agencies, mainly Fannie and Freddie. In other words, without Fannie and Freddie, there wouldn’t be much of a mortgage market.
To make things worse, the government decided to “sweep” almost all the duo’s profits into its own coffers, to be used as a slush fund for general government expenses. As Treasury Secretary Jacob J. Lew said in congressional testimony this spring, “As a practical matter it’s what has helped us reduce our overall deficit.” If there is another downturn in the real estate market and Fannie and Freddie suffer losses on their some $5 trillion in outstanding securities, taxpayers will again have to foot the bill.
What do you expect to happen when the people responsible for running the economy into the ground are rewarded with bailouts and deemed “Too Big to Jail?”
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I'm really tired of this.
i don't understand what you're on about. a very significant lesson was learned - if you gamble with shitloads of other peoples money and lose, you get bailed out.
i can think of no greater encouragement to continue along the same line, if you're a banker.
Whey the fock are these two Freddie and fannie not married to each other? Why 2 orgs doing the same shit? For cubing the in-efficiency and thus potential for graft? Fail-over protection? Why?
Has this question been deeply debated?
Very strange, don't you think? Almost occult. And these strange focking names.
"Whey the fock are these two Freddie and fannie not married to each other?"
Because then they would make a baby. You would not like that baby. It would be a very, very bad child, and there's no reason to think they couldn't make more than one.
You mean it would result in an Un Holy Fock?
And a bastid child? A debt spawn?
Ugly....very ugly...
How about un-en-acting them out of existance?
Government agencies have limited input from shareholders (those who hold dollars). The system thus tends towards inertia, rather than flexible transformation.
The baby is known as Sally Mae, notice the same last name as the mother Fannie Mae, bastard spawn.
Of course there's a problem. Who's bought all the US mortgage paper since they world market for it collapsed after the sub-prime meltdown?
Goes back to the 30s when they were first set up as public/private entities. They thought having two would make them compete with eachother and keep prices down, terms competitive. The crony capitalists blew right through that little roadblock like a train through a sheet of tissue paper.
I'm sure the roadblock was a tiny figment of the drafter's conscience...easily circum-vented over a Glenlivet and perhaps an ass-fucking...who knows, all this I Is Wide Shut Shit...
illusion of competition?
You gotta have competitopn or they couldn't claim it was capitalism...
Here's what I think was learned: The government is the source of all lending. Student loans? All student loans are government loans now. Mortgages? Unless your Mom is going to bankroll you, it will be a government loan, no matter what bank is filling out the paperwork. Car loans? Govvie's got your back again. Credit Cards.... well, not yet, but they've got this new Consumer Credit Protection Agency calling the shots.
What was learned is that even the mock vestiges of capitalism that may have existing prior to the '08 crash were FAR too dangerous to allow to exist. Government most control all. Nobody wants to hear shit about anything that isn't government guaranteed. In short, yes, we insitutionalized the whole concept of "too big to fail". It's called the Feral Government.
Yep, we're all communists now. But I'm still not sharing my sammich with you comrade.
I think its slightly more perverted than that. Private banks issue the loans and issue the credit. As long as they are paid how they are supposed to be, the loans remain with the banks and the banks make money on them. When a large enough number of the loans go bad, they wind up on the books of the central bank(much of QE was them buying MBS) or bailed out by the govt. The bank makes money when things go well by issuing the credit, get bailed out when things go bad, losing no money themselves. The bank gets bailed out, since they are "too big to fail" and thus must be rescued by the govt from bankruptcy. The individual that borrowed money from them declares bankruptcy, gets his house reposessed, and is financially ruined, and the bank now owns the house, and is thus able to repeat the process with a different buyer.
Privatized gains, socialized loses. Its like the worst of both worlds.
"Privatized gains, socialized losses. Its like the worst of both worlds."
Well, that kinda depends on which side of the equation you're on, doesn't it?
is it the government, though? ultimately most of the debt is owned by the central banks around the world.
look at the monetary base over the past 10 years. then apply leverage.
http://cdn8.jeremyrhammond.com/wp-content/uploads/2015/06/monetary-base-...
If you can tell me the point where banks end and the government begins, I'll buy your premise. They're two arms of the same creature.
is that creature public or private? and who controls it?
am i allowed to ask these questions without being called a conspiracy theorist?
The creature from Jekyll Island does not reveal itself for what it is. It is private, but its appendages do surface. Banks are the heart and circulatory system. Government is the body. Courts are the immune system. Military is the fist. To kill the hydra, either cut off the heads or else stake the heart. The heart is well protected. The heads are less protected, but better hidden. Those who control it are falsely proclaimed Ashkenazi Jews from the nation of Georgia who hide behind the ADL for protection from any scrutiny. Their true nature is outlined in Revelation 2:9 and 3:9. In light of this, it is quite simple to win. All one must do is choose good over evil within their own heart.
"is that creature public or private? and who controls it?"
Maybe it is out of control... facts would seem to suggest that as a probability. I think the banksters thought they controlled it; then the politicians thought they did. Now everyone is pointing their fingers at everyone else.
My conclusion is that "corporations" have taken on a life of their own, and now the entities control their own directors, and their own officers. No human is in charge. And you can thank John Roberts for that.
Craig
One Fascist creature.
The central bank initiates the debt; the government assumes responsibility for it on behalf of the taxpayers. Privitize profits, socialize losses.
Federal Reserve! Unless Federal means something other than
So, yeah, it's the government who is run by The Fed. Or is it The Fed who is run by the government? I forget.
Yes. And, how about:
"If we control when the crisis happens and everyone is freaking out we can get all kinds of protections and legislations that will allow us to put a bridle on the Markets with HFTs and smooth out the steering on this thing a bit"
"It's time we really put the thumbscrews to the media so they can cheerlead for us. Yes they suck, but they are the only game in town. Let's hook up a few mergers and deals to keep them alive and carrying water for us."
ZHers, please educate me on some history: Why was Madoff the only major player to receive prison time? Did he Ponzi the wrong people, or was he the designated patsy/fall guy? Other?
Fish are refusing to be wrapped in the New York Times tabloid ziopropaganda news.
"A national debt, if it is not excessive, will be to us a national blessing. It will be a powerful cement of our Union." ~ Alexander Hamilton
It was never a slippery slope, right?
Three card monte on an epic scale.....
Indeed, old game man, old old game.
How is debt good cement for a union?
That sounds like the product of a rather twisted mind....
Hamilton was the first to push for a central bank.....
he was. He was also the initial person arguing over negative vs positive rights. He argued that unless the constitution explicitly prohibited the federal govt from doing something, the govt was legally allowed to do something, vs the original intent which was for the fedgov to have a very small and specific number of roles. We have him to thank for Henry Clay, and we have clay to thank for lincoln, and lincoln to thank for everyone since.
Looking around, its quite easy to tell which view of the constitution won
The American System, I think Clay and Lincoln called it. Seems like just another iteration of Mercantilism.
Nice insights there GreensK Carl...
Yeah, but it took the lawyers to really screw things up. We really need to outlaw them and put a bounty on their heads just like any varmint.....
Debt is good cement for a union, like cement shoes were good footwear for a good fella that knew too much.
right up there with new-age keynesians claiming bubbles are great, and can fuel economic growth. i forget exactly who penned an article as such, but i'd guess it would have to be either krugman or stiglitz.
(because artificial asset price inflation is never a problem to keynesians)
Keynesians woulud endorse any idea that will allow them to continue waging their butt love fest on each other
If one could go back in time and assasinate....prime candidate
Canada has thee CMHC - first times a charm.
The government is "sweeping" this shitshow with $50,000 brooms...that they bought on sale.
There was a crisis? When did this happen? The average citizen has a memory of a donut........ mmmmmmm....... donuts......
That's so fucking true it hurts. Thanks for the laugh. Now I need to go jump off a bridge.
Make sure you don't accidentally shoot yourself in the back of the head with a nail gun five times on your way down.
I think that would be a fitting end for me, don't you think?
But Phew!
It appears an avatar such as you cannot shoot itself.
The avatars around you though ...
Taxpayers do not have to foot the bill. All we have to do is stand together and say NO!!!!!!
So yes we will be paying this bill because my above statement will never happen.
Depends on where and with whom you're going to stand.. doing such excercise in the backyard with kids changes nothing and the rest of folks don't give a fucking fuck.
Well, I know good people who understand the game. Getting them to stand against the system is another issue.
Who listens to taxpayers?
What?????
lol
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
Einstein's absolute worst and stupidest quote ever.
Dont wave off classically that which happens quantum mechanically. That was playing on people's stupidity, just like his assertion that god does not play dice. god rolls like a mofo. yaveh and bankster minions are the ones that have deformed the dice.
Yes, a lessen certainly was learned: that they can get away with anything at all!
That lessen there is the perfect freudian slip Solio...
+1 for the multilevel humor.
Dumb taxpayer
The Bankruptcy of The United States
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303
Speaker-Rep. James Traficant, Jr. (Ohio) addressing the House:
"Mr. Speaker, we are here now in chapter 11.. Members of Congress are official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner’s report that will lead to our demise.
It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.
The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part: "The U.S. Secretary of Treasury receives no compensation for representing the United States?’
Gold and silver were such a powerful money during the founding of the united states of America, that the founding fathers declared that only gold or silver coins can be "money" in America. Since gold and silver coinage were heavy and inconvenient for a lot of transactions, they were stored in banks and a claim check was issued as a money substitute. People traded their coupons as money, or "currency." Currency is not money, but a money substitute. Redeemable currency must promise to pay a dollar equivalent in gold or silver money. Federal Reserve Notes (FRNs) make no such promises, and are not "money." A Federal Reserve Note is a debt obligation of the federal United States government, not "money?’ The federal United States government and the U.S. Congress were not and have never been authorized by the Constitution for the united states of America to issue currency of any kind, but only lawful money, -gold and silver coin.
It is essential that we comprehend the distinction between real money and paper money substitute. One cannot get rich by accumulating money substitutes, one can only get deeper into debt. We the People no longer have any "money." Most Americans have not been paid any "money" for a very long time, perhaps not in their entire life. Now do you comprehend why you feel broke? Now, do you understand why you are "bankrupt," along with the rest of the country?
Federal Reserve Notes (FRNs) are unsigned checks written on a closed account. FRNs are an inflatable paper system designed to create debt through inflation (devaluation of currency). when ever there is an increase of the supply of a money substitute in the economy without a corresponding increase in the gold and silver backing, inflation occurs.
Inflation is an invisible form of taxation that irresponsible governments inflict on their citizens. The Federal Reserve Bank who controls the supply and movement of FRNs has everybody fooled. They have access to an unlimited supply of FRNs, paying only for the printing costs of what they need. FRNs are nothing more than promissory notes for U.S. Treasury securities (T-Bills) - a promise to pay the debt to the Federal Reserve Bank.
There is a fundamental difference between "paying" and "discharging" a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity). With FRNs, you can only discharge a debt. You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of "good & valuable consideration." Unpayable debt transfers power and control to the sovereign power structure that has no interest in money, law, equity or justice because they have so much wealth already.
Their lust is for power and control. Since the inception of central banking, they have controlled the fates of nations.
The Federal Reserve System is based on the Canon law and the principles of sovereignty protected in the Constitution and the Bill of Rights. In fact, the international bankers used a "Canon Law Trust" as their model, adding stock and naming it a "Joint Stock Trust." The U.S. Congress had passed a law making it illegal for any legal "person" to duplicate a "Joint Stock Trust" in 1873. The Federal Reserve Act was legislated post-facto (to 1870), although post-facto laws are strictly forbidden by the Constitution. [1:9:3]
The Federal Reserve System is a sovereign power structure separate and distinct from the federal United States government. The Federal Reserve is a maritime lender, and/or maritime insurance underwriter to the federal United States operating exclusively under Admiralty/Maritime law. The lender or underwriter bears the risks, and the Maritime law compelling specific performance in paying the interest, or premiums are the same.
Assets of the debtor can also be hypothecated (to pledge something as a security without taking possession of it.) as security by the lender or underwriter. The Federal Reserve Act stipulated that the interest on the debt was to be paid in gold. There was no stipulation in the Federal Reserve Act for ever paying the principle.
Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913)
"Hypothecated" all property within the federal United States to the Board of Governors of the Federal Reserve, -in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a "beneficiary" of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their "subjects," the 14th Amendment U.S. citizen, to the Federal Reserve System.
In return, the Federal Reserve System agreed to extend the federal United States corporation all the credit "money substitute" it needed. Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their "economic slaves", the U.S. citizens as collateral against the unpayable federal debt. They also pledged the unincorporated federal territories, national parks forests, birth certificates, and nonprofit organizations, as collateral against the federal debt. All has already been transferred as payment to the international bankers.
Unwittingly, America has returned to its pre-American Revolution, feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. We the people have exchanged one master for another.
This has been going on for over eighty years without the "informed knowledge" of the American people, without a voice protesting loud enough. Now it’s easy to grasp why America is fundamentally bankrupt.
Why don’t more people own their properties outright?
Why are 90% of Americans mortgaged to the hilt and have little or no assets after all debts and liabilities have been paid? Why does it feel like you are working harder and harder and getting less and less?
We are reaping what has been sown, and the results of our harvest is a painful bankruptcy, and a foreclosure on American property, precious liberties, and a way of life. Few of our elected representatives in Washington, D.C. have dared to tell the truth. The federal United States is bankrupt. Our children will inherit this unpayable debt, and the tyranny to enforce paying it.
America has become completely bankrupt in world leadership, financial credit and its reputation for courage, vision and human rights. This is an undeclared economic war, bankruptcy, and economic slavery of the most corrupt order! Wake up America! Take back your Country."
http://www.afn.org/~go
Trafficant was railroaded because he spoke out
What an interesting man, and an even more interesting politican. I hope Scotty beamed him up.
Thanks for posting this. How many Americans would have their minds completely blown about their "reality" from reading and understanding just this one post.
What do you expect to happen when the people responsible for running the economy into the ground are rewarded with bailouts and deemed “Too Big to Jail?”
I expect more of the same, raises, big bonuses, larger pensions and or lucrative job offers in the private sector like blackrock.
So can we hang Barney Frank yet?
Hey hey hey, you can'y pick on protected classes like Barney Frank, even if he was sleeping with the head of an organizaton he was bailing out.
But if we're going to construct a gallows, might as well make it a party...Greenspan, Bernanke, Rangel, Timmay, Dimon...please feel free to nominate your favorite clown for a hanging...
Jacob J. Lew. Mainly because I just hate looking at his name. But also because I know he is setting up for a fall in the near future
Well as long as we are going to start a line.... Pelosi, Reid, Lerner
Add as needed
So what sexual relationship with congress is gonna surface now?
Power..its all about power...right now the Politicians run Fannie and Freddie...and they love the power....they can say loan to the Fergusion rioters..and they will...subprime loans...sure....its all about Power...
Don't worry, things will really pickup once the Interest Rates go up, right eh Janet.
Like Carney Boy said once: Once we achive escape velocity we'll put it into orbot.
Just let social security fund the first time buyer program and let the private sector have the rest.
Well, don't forget that most tax payers benefit from receiving loans guaranteed by Freddie and Fannie.
Receiving loans from the government because private banks aren't willing to accept the risk (because they know these bubble 2.0 home prices are being kept artificially high via the Fed) is beneficial? Not to the buyer nor the other taxpayers whose money will be used for bailouts and who did not participate in the transaction.
They are using the servicers to fraudclose against homeowners as they hide in plain site !!!!!......then when you wise up and start asking questions is when the real fun begins.
Trafficant wasn't railroaded, he was jailed for telling the truth - a truth that everyone knew (except the sheep), but said and did nothing to allieviate the problem. Now that some of us sheep are hoarding/buying PMs, the scum that run the US corp(s) are trying to fix it so that PMs won't be worth doodley squat. Any thoughts on HOW CAN THEY DO THAT? Thanks for listenin'.
Yippee Ki Yay!
Any country that did not heed the warnings that emanated out of the 2008 crash must be functionally retarded IMO. Moreover, Sally Mae is the same kind of structured fiasco as Freddie, and Fannie are. Paulson, Geithner, Bernanke, Lew, Yellen, and all the other assclowns must have consumed too many retard sandwiches during their formative years whilst being indoctrinated in the Synagogue of Satan.
NOTE: Satan must be functionally retarded like all his Jewish followers.
The next transfer of wealth is coming......stock market plunges; massive deflation, and then interest rates jump....the bankers gotta eat too...
www.ViewLasVegasRealEstate.com
"Just in case you still harbored any doubt that absolutely zero lessons were learned from the cataclysmic financial collapse of 2008/09..."
That is because those lessons were learned in the 1930's. Glass Steagall was dismantled so that what happened in the 1920's, could happen again, not because they forgot about the 1930's and made a mistake.
They are not making a mistake now, either. It is more of the same on purpose.
you sound like another confused dumbocrat, the collapse in 2008 came as a direct result of government regulation, not lack of it
"But here we are, seven years after the crisis, and nothing has changed."
We are 7 years into the crisis. It hasn't hit bottom, yet. Then things will change.
it's no secret, fwank dodd II simply doubled down on the stupidity of the past...fwank dodd I, cra, hud, etc. connected elites, gov't and not, will continue to make a killing at the expense of taxpayers. the transformation is all about extortion and wealth transfer, err theft.
“The economic crash of 2008” is the wrong context and a brainwash mental block.
“The successful bankster American mortgage crime of 2008 that crashed the American and world economy” should begin any conversation on the crash of the economy in 2008.
What was the cause of the 2008 crash? Was it bankster fraudulent mortgage loans and MERS fraud from 2000+ that was fraudulently spread around the world that finally caught up to reality in 2008?
Were the fraudulent bankster criminals and their fascist government cronies sent to prison? NO! The criminals black-mailed and bribed Congress to bail their dirty paper out with 700 billion dollars instead of throwing the criminals in prison and bailing out the American home owner for between 1 billion and 50 billion dollars! The criminal bankster crime spree should have ended in 2008.
Where did Congress get the 700 billion dollar bail out? Well, they borrowed the money from the banksters! Ha. Ha. Ha.
http://necsi.edu/news/2011/bailouts.html
The bankster criminals went on to create the derivatives scam that now looms over the world today at a godzillion dollars!
Todays, world depression is designed, created and caused by: The criminal banksters and their government cronies that were not prosicuted in 2008.
Repeat after me: "It's different this time, it's different this time, it's different this time, it's different this time, it's different this time, it's different this time, it's different this time, it's different this time, it's different this time, it's different this time..."
Mid Sept 2016 it will all happen again. Bank crash which necessitates a bi partisan bail out to forestall a credit catastrophe.