How the Bailouts Are Taking Us All Down

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Friday March 20, 2009 · 7:20 PM PDT

2009/03/20 · 19:20

Last fall I diaried about how the Fannie/Freddie bailouts were a disaster for taxpayers, the economy and capitalism in general, both in and of themselves and because of the precendent they set for failing instituions to keep themselves alive at the public feeding trough at our expense and at the expense of their competitors who prudently managed their businesses to stay solvent.

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Wednesday October 01, 2008 · 4:53 AM PDT

2008/10/01 · 04:53

""Hundreds of billions of dollars are going to bail out FOREIGN INVESTORS. They know it, they demanded it, and the bill has been carefully written to make sure that can happen." - Brad Sherman , D-California"

Paulson and Bush have threatened to veto the bill if this provision is removed.

Call your representatives!

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Tuesday September 30, 2008 · 6:13 AM PDT

2008/09/30 · 06:13

The cost of credit has risen for financial institutions, especially those who created the crisis by leveraging up on asset bubbles.

As these companies fail, the remaining financials will get stronger and eventually the interbank market will recover. If we bail out the sick financials, we will get a lost decade like Japan, AND lower stock prices. Japanese financial stocks fell 90% from 1992 to 2003 BECAUSE the government bailed them all out and prevented failure.

Meanwhile, THERE IS NO CREDIT CRISIS FOR SOLVENT COMPANIES! Borrowing costs for industrials are at the LOWEST IN FOUR YEARS!

Make sure your rep VOTES AGAINST ALL BLACK HOLE SUNK COST FINANCIAL INDUSTRY BAILOUTS!

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Wednesday September 10, 2008 · 6:28 AM PDT

2008/09/10 · 06:28

For today's diary on the Fannie and Freddie investor bailout fiasco, I will simply post an excerpt and link to the FT story that the nonpartisan CBO (Congressional Budget Office) is adding Fannie and Freddie DIRECTLY to the Federal Budget.

Therefore, the $5.4T of leveraged debt-financed mortgages, subprime and ALT-A exotics bought in the dent market, guarantees, and their massive derivatives portfolio (what Buffet calls "Financial Weapons of Mass Destruction"), and the losses now associated with these now belong to YOU.

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Tuesday September 09, 2008 · 7:42 AM PDT

2008/09/09 · 07:42

As I have repeatedly noted, this taxpayer bailout of mortgage speculators was a massive transfer of wealth to private, moneyed interests. Hank Paulson is lining his buddies' pockets with an INFINITE backstop of the massive Fannie/Freddie hedge fund and the Democrats don't say a peep.

From the OC Register:

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Monday September 08, 2008 · 8:39 AM PDT

2008/09/08 · 08:39

Today I will simply post the a missive from investor Fil Zucchi
describing the atrocity of bailing out Foreign Central Banks and other
"investors" in bad Fannie and Freddie debt.

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Sunday September 07, 2008 · 5:57 AM PDT

2008/09/07 · 05:57

Fannie and Freddie are gigantic leveraged hedge funds which were used to enrich management and its investors. These firms were instumental in creating the housing bubble which drove home prices to more than 5x income, far above the 2.5 to 3x long term historical average. This happened because these private firms used their government chartered statuses to borrow cheaply and buy over $5T of mortgages, including $1T exotic subprime and Liar Loan mortgages, creating a price bubble which is devastating the US economy.

Luvvinit

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Saturday September 06, 2008 · 4:38 AM PDT

2008/09/06 · 04:38

This diary is my first and will have a very brief introduction and a link to a market observer who will make the case that the bailout of Fannie Mae and Freddie Mac, the two government sponsored entities ("GSE")'s which issue most of the mortgage debt in the United States, is an unlwaful, unwise and dangerous act of moral hazard which amounts to a vast wealth transfer from taxpayers (and especially taxpayers who have not bought more house than they can afford, who have not speculated in housing, and renters) to foreign central banks, large asset managers such as Bill Gross's PIMCO, and other speculators who bought Fannie and Freddie debt with an EXPLICIT NON-GUARANTEE of the Federal Treasury.

RSS

How the Bailouts Are Taking Us All Down

Paulson bill will bailout foreign investors - Sherman D-CA

There is no credit crisis for creditworthy companies

CBO adds $5.4T in Fannie and Freddie to US books, US default risk rises

PIMCO makes $1.7B in one day from bailout

Treasury's latest obscenity

The bailout of the Fannie and Freddie Hedge Funds

Stop the bailout of the Fannie and Freddie Hedge Funds