$400 Billion More for Freddie and Fannie?
Tags: Financial Crisis.
Click here to get Caucus of Corruption: The Truth About The New Democratic Majority by Matt Margolis and Mark Noonan.
The black hole of our destroyed housing market continues to grow:
Fannie Mae and Freddie Mac’s federal regulator is renegotiating the companies’ financing plan with the U.S. Treasury Department and may seek an increase to their $400 billion federal lifeline before the end of the year, according to people familiar with the talks.
These two entities hold $5.5 trillion in US mortgages and as the housing crises continues to deepen – yes, “deepen”; not, “get better” as the talking heads of finance and government have it – it just gets worse for Fannie and Freddie especially as they have such a huge percentage of the really garbage loans generated in the sub-prime boom. There is no amount of bail out which would actually solve the problem – there’s just too much bad debt secured by assets not worth 50% of the loans on them.
The only way to fix this – other than by mass citizens’ action to simply walk away from all the “underwater” loans – is to essentially put our housing and mortgage markets through bankruptcy reorganization. It would be hard, everyone would take a hit, but if we did it, the problem would be solved. Fundamentally, this involves reducing the principle owed on primary-residence homes in line with current market values for the property – and, so, a house which has lost 50% of its value would have its mortgage(s) reset at 50% of current principle, or to property market value, whichever is greater.
Doing this would do the most important thing: keeping people in their homes. There are about 10 million people “underwater” on their loans and, more and more, they are just bagging it and heading in to the rental market. If even 20% of those homes show up on the market over the next year, it will cause another big drop in home values…thus pushing even more people in to “underwater” status and thereby reinforcing the urge to walk. We’re probably already at the point where people who bought even as long as 10 years ago have lost principle – certainly, this is the case in the worst hit areas, and it will just spread and get worse unless we do something about it.
Or we can just keep bailing out banks and ignoring the fundamental issue of lost home values – and have one heck of a massive crash.
Thank you for visiting Blogs For Victory. If you enjoy our content, please consider making a donation to help us cover the costs of our servers.Mark Noonan is co-author (with Matt Margolis) of Caucus of Corruption: The Truth About The New Democratic Majority. He also blogs at Nevada News and Views. Follow Mark on Twitter.
31 Responses to “$400 Billion More for Freddie and Fannie?”
Caucus of Corruption
Moderator’s note: “Bush did it” comment deleted.
Let’s see, Bush, Iraq, mean Republicans. In case you missed it, Sadie, the majority of Democrats voted for the Iraq war, and continued to vote to appropriate funds for it. Hoist. Petard.
And double in case you missed it, Democrats are raising the deficit to unbelievable levels. You Dems whined about Bush’s deficits, yet, you have no harsh words now. Hypocrite.
Teach
they seem to forget this a “pissed off weeks and maxine waters spouting about political lynching of fellow BROS while destroying the entire US economy.
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Lefties live in their own special world, Neocon, one that has little relation to reality. Sad, really. They have to hide what they truly believe in and the facts, because, otherwise, everyone would ask if they were insane.
Teach
how can they defend this spending insanity?
we complained about W’s spending, but this is just crazy>
I believe they want to bankrupt us and cause our collapse for their insane ideals of a workers paradise.
One other thing that Sadie, and the other spoon fed liberals will never acknowledge and that is that nearly every “conservative” was vehemently against TARP I, and that Obama, other democrats, urged it’s passage and quick implementation. Just a fact.
It’s easy for the lefties to defend this level of spending. Democrats are in charge, so, it is OK. If it was a Republican in the White House, or Republicans in charge of Congress, the Left would go ballistic.
The Lefties also forget that spending really started jumping when Democrats took over Congress in 2007. They blame Bush, but, forget that spending bills originate in Congress.
Remember, these folks are completely divorced from reality. They Blame Bush for “removing us from Kyoto,” forgetting that we were never in it, since the Democrat majority Senate voted 95-0 against joining it, and Clinton agreed.
They forget that a Democrat controlled Senate and Clinton came up with the Iraqi Liberation Act. They forget that Democrats were saying how dangerous Iraq was, and that it was a Democrat who said that Iraq was an “imminent threat.” They live in La La Land.
Teach
the left is atheists, communists and sodomites.
There is no truth or goodness within them.
They murder their young,and old. live off others labor, and steal what they covet,
they are an evil bunch indeed.
ur so right neo.
when I’m not murdering & raping the kids & grandmas in my hood, I’m trying to find the free money line.
I want my gubment cheese & bread!
Deleted – off topic.
Chef
well abortion is murdering one’s own children and the left loves this.
You can make light and mock it, but it will be judged by God one day.
As far as you raping grannies in da hood…I doubt that, but who knows? if you say so, who am I to refute it.
gubt cheese and bread?…look about you. im sure you are surrounded by many looters and takers, that is OK with you?
but back on subject…
you obviously condone black panthers standing in front of a polling place and intimidating whites with night sticks.
You of all people, a vet should be outraged if you witnessed such a criminal act I would expect you to take action against the thug and preserve our republic from enemies, foreign and domestic, which you swore an oath to God to do.
sadieforker
I’ll check back with your kids in twenty years and see what that upbringing did for them.
1. they werent aborted..so I have kids.
2. they are all straight.
3. They have never been in trouble or arrested for anything.
4. they all work.
5. they do no drugs, do not smoke and drink moderately.
6.they all believe in God, not allah, hindu, or cults.
7. they are all conservative,
8. not to bad….and yours?
at least I can respect mark who’s also against the death penality.
in fact, if ur so opposed to killing, abortion or otherwise, shouldn’t u be a complete pacifist?
what would jesus do?
_
and I didn’t condone anything about voter intimidation.
I live & raise my kids in an inner city environment unlike u ‘burbanites.
I’m not intimidated by black people.
Chef
I live & raise my kids in an inner city environment unlike u ‘burbanites.
I’m not intimidated by black people.
you are to funny,
I live in the burbs because it is clean, friendly, quiet, and a good place to raise children and live.
Much to your regret, it has nothing to do with blacks, whites, asians or the fear there of.
My neighborhood has all the above, just no trash of any color,
to bad you choose not raise your children in a similar
neighborhood….free of beatings, rapes, drugs, drive by shootings, gangs, intimidation, and mayhem.
your choice not mine.
PS remember we “cling to God and guns” so no “bro” can scare us we have Sarah….LOL
Chef
the only “killing” I approve of is self defense, that includes societal.
IE – war, and in extreme cases the death penalty.
Ted bundy is one of those, and the animals who tortured and murdered christian newsome and his girl friend deserve to be hung.
as were the nazis at the end of ww2.
8. not to bad….and yours?
Probably all aborted, just like she should’ve been…
“So the only people who commit crimes are liberals. Thne only women who get abortions are liberals and the only people who are gay and lesbian are liberals? ”
Well, sadie, you consider that all conservatives are racist. You also consider lying to keep conservatives out of power to be a good thing. You support murder of the unborn. You also believe you are dead and in hell.
You have no room to pass judgement on anyone with archaic beliefs like that.
The Democrat party contains liberals, therefore all liberals are Democrats.
The Democrat party contains apologists, therefore all liberals are apologists for the Democrat party.
The Democrat party is ineffective even in majority and plainly unable to enact its most public mandates, therefore the Democrat party is enacting a dictatorship.
Cities are America’s most vibrant centers of Capitalism and job creation, therefore the people that live there are liberals on welfare.
Nevada has legalized male prostitution, therefore Nevadans are decadent sodomites.
RE: The Democrat party contains liberals, therefore all liberals are Democrats.
That would be Communists instead of “liberals.” They introduced communism under the guise of “liberalism.” Therefore, they are Marxists (or communists).
See, that is the great thing about Conservatives: we can disagree on certain issues. When you find a Liberal who is pro-death penalty, they are demeaned and insulted constantly and told they are bad people.
Of course, libs are all of a sudden for the death penalty when it is an executive for Exxon or a Wall Street firm. And George Bush and the folks who work in his admin. You folks on the left had all sorts of Bush assassination fantasies.
oo,
Pacifism is immoral – taken to its logical conclusion, it would prevent me from defending the innocent.
To murder is always wrong, but some times it becomes the lesser of two evils to kill.
lunatic,
We didn’t actually legalize it – it was just noted that all the laws only speak of females as prostitutes. What happened is not a making of new law, but of fitting an old law to the requirements of Nevada and US constitutional practice – we can’t discriminate. So, yes, we will shortly have male brothels in Nevada (and if you think they’re for the ladies, you’re nuts).
Prostitution has been legal in this State for quite a long time – though it is illegal in Clark and Washoe counties, where the overwhelming bulk of Nevadans live. I’d prefer to ban it in the State, but there is not the political will, at the moment, for such a thing.
To Mark: Go ahead and introduce a dozen shades of grey into the Nevadan brothel situation. You and I both know the difference between Vegas and Nevada. Your posters and hangers on require absolutism, however. Imagine if San Francisco, or Austin or Ann Arbor decriminalized male prostitution through some legal frippery. You could point to that in your blog as a leading sign that America is “Mirroring the Fall of Rome”. Your readers would solemnly agree, even as they spent themselves in a tacky chain bar version of “Coyote Ugly”, a plastic size-12 cowboy boot margarita in one hand and a fully legal whore in the other. Go ahead and apologize and prevaricate about sodomy and see where it gets you with this crowd. We all know who’s going to enjoy legalized male prostitution in Nevada: They won’t be from Nevada, they won’t be women and they won’t be whipping a gay freedom flag around a San Francisco parade.
sadieforker
Go right ahead and delete this Mark, it will live on for Eternity where I post
eternity?
Well until that LITTLE sleazy, porno-freak show you call a site goes bust, or they fire your demented A$$.
AMF….FUBO
lunitic
They won’t be from Nevada, they won’t be women and they won’t be whipping a gay freedom flag around a San Francisco parade.
Soooo have you bought your tickets yet?
Alas no, neocon, I’m too busy whipping a gay freedom flag around a San Francisco parade. You got a problem with that?
“How many times has Mark Noonan been quoted in the Columbia Journalism review?”
Let’s see, searched for Mark Noonan, Blogs for Bush, Blogs for Victory and received 9 hits.
I also searched for you, pain and the rest of the sorry bunch, Brimstone and pitchfork and imagine my surprise when I received ZERO hits.
That answers that.
lunatic,
What on earth are you talking about? I think you’re trying very hard to find something to be mad at me about – but, come now; its clear that I oppose legal prostitution, male or female.
While prostitution was never really made illegal in the State, it was suppressed by various measures between the 30’s and early 70’s until a clever brothel owner managed to get a law passed in a rural county allowing his business to remain open – absurdly worried that having whores around would diminish the moral level of casinos, the State bigwigs swiftly passed a law tailor made to keep prostitution illegal in the two counties where most of the people live. You want a hooker, you better have a lot of cab fare because the closest one to the Strip – legal, at any rate – is 70 miles away in Pahrump, just over the county line in Nye County.
I’d like to ban it but, as I said, there just isn’t the will to do so – Nevada has a very strong libertarian streak, ya know?
tired,
Sadie apparently doesn’t realize (a) how long I’ve been blogging or (b) how much I’ve got around…not that I’m a big star, but I’m not unknown, either.
wow, sadie, how ignorant can you be?
As usual, you post a statement with nothing to back it up. We call your bluff and then you accuse us of lying! You do have a serious reading comprehension problem.
“When I Google our site name I get numerous hits and the same for Mr Noonan.”
In your post you stated Columbian Journalism review NOT GOOGLE! I listed what I searched and how. Searching Columbia Journalism Review for “Mark Noonan” and “Blogs for Bush/Victory” is so simple even an imbecile like you could do it. Any site can show up in GOOGLE, even the site where all the bloggers believe they are dead, live in hell and believe in a great leviathan. And you state, your blog is truthful?
Based on the results at Columbia Journalism Review, the evidence shows you to be the liar and that is not surprising with the error prone crap you post.
Why don’t you post your “proof” and list the parameters of your search at Columbia Journalism Review that way we can check for ourselves. But you are too intellectually dishonest to do such a thing. You are not the first forker to come here and be proven the liar that you are.
To Mark: There’s hostility in my post, but it sure isn’t directed at you. You’re not to blame for legalized prostitution in Nevada and I wouldn’t expect you to defend the practice. You might be blamed for providing a pulpit for idiot absolutists, however.
Next time you take pot-shots at American cities, such as New York, Los Angeles or San Francisco because they are “hot-beds of failed Liberal ideology”, consider where YOU come from: Nevada, the international standard for drunken dissolution, bankruptcy and whoremongering. Is that fair? Only by the absolutist logic of the folks who post here daily. And that’s where I direct my hostility.