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Paulson on the Freddie/Fannie bailout

Discussion in 'Sports and News' started by poindexter, Sep 8, 2008.

  1. poindexter

    poindexter Well-Known Member

    When asked by MSNBC at about the 2 minute mark how much the bailout would cost, tens of billions, hundreds of billions?:

    PAULSON: I....uh...There is no specific analysis. We didn't figure it out with a calculator.



    Fucking doomed.
  2. Football_Bat

    Football_Bat Well-Known Member

    Like I said on the other thread: pay hundreds of billions now or pay tens of trillions later.

    Fannie and Freddie cannot be allowed to go belly-up.
  3. poindexter

    poindexter Well-Known Member

    First off, Daddy Warbucks Paulson himself has no f'ing clue how much the amount is. He said so himself. This shit was done by the seat of his pants. So where you get "hundreds of billions now or pay tens of trillions later"?

    And why on earth would taxpayers be paying 10s of trillions of dollars if Fannie or Freddie collapsed?
  4. The Big Ragu

    The Big Ragu Moderator Staff Member

    Fannie Mae and Freddie Mac's risk hedges were the same as Enron's. Yet no one talks about them the same way. They are Federally chartered, and have sweet sounding marketing campaigns tied to the American dream of home ownership, so they don't get looked at with a critical eye. Why bail out something that has become so big and unwieldy, yet is such a big part of the U.S. Economy because they are tied to the bulk of so many people's net worth, when their failure can jeopardize our whole economy? If they fail, the U.S. banking system fails, because it is so dependent on Fannie and Freddie debt. Then taxpayers are on the hook for a bailout that will make the savings and loan scandal look like chump change. Better to get out now, and absorb some of the hit, than wait for a total failure and absorb a monstrous hit that will devastate us. If we ease the things down to worthless--and they are worthless without us subsidizing them--some of the smaller banks that have a lot of their reserves tied up in preferred shares will fail, and it will cost the taxpayers something in a bailout. If we let those monsters keep breathing fire, we risk a bailout that could destroy our economy. It's a stupid game of Russian Roulette that doesn't look past the tip of our noses.
  5. poindexter

    poindexter Well-Known Member

    You know what, I am sick of "too big to fail". Way sick of it.

    Bear Stearns
    Freddie Mac
    Fannie Mae
    Is just the beginning. Fuck them. Completely and absolutely. I understand the ramifications.

    I am ready for failure. This complete and absolute Wall Street clusterfuck should in no way be perpetuated - as it is doing.

    Too big for failure? Try me.
  6. Pancamo

    Pancamo Active Member

    Next up, automakers.
  7. DanOregon

    DanOregon Well-Known Member

    Sounds like class warfare to me.
  8. Brooklyn Bridge

    Brooklyn Bridge Active Member

    And bring the entire board of directors up on charges. The people behind Enron were brought into a court and judged by their peers, why aren't these guys? Because they are all politically connected. That is why there is no difference between Republicans and Democrats. You want my vote? tell me you're going to hold investigations that will lead to criminal charges against these folks. I don't care if its McCain or Obama. I'm sick and tired of hearing "community organizer," "Palin is a bad mom," "high gas prices." Get it done.

    Rant over.
  9. Freelance Hack

    Freelance Hack Active Member

    I was at a seminar in Boston a few weeks ago. One of the keynotes was Tim McNamar, a former assistant secretary of the treasury under Reagan. The guy's obviously a conservative, but he was saying that the government needs to be tougher on business leaders.

    He noted that what we consider minor accounting errors are offenses that put Chinese business leaders in jail.

    I understand the need for bailing out troubled institutions if only for that fact it would wreck our economy if we didn't, but we need to hold the leaders of these failed businesses accountable. If they engaged or ignored criminal activity then they need to be dealt with as harshly as possible. No Club Fed, no fine only sentencing, but hard time in a federal prison.

    In other good news, Fannie and Freddie's CEOs may still walk away with severance packages totaling between $10-$15 million.

    God Bless America.
  10. Brooklyn Bridge

    Brooklyn Bridge Active Member

  11. Magic In The Night

    Magic In The Night Active Member

    Banks spend more money for lobbying than any other industry or group. They expect something in return and they're not talking about 4.3 percent on their CD!
  12. jps

    jps Active Member

    and I thought steve & barry's was bad ...
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