Fannie Plan a “Disaster”

by Morgan on July 14, 2008

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That’s according to Jim Rogers, George Soros’ former fund manager, when asked his thoughts on the Fannie/Freddie bail out. Simply put, Hank Paulson and Ben Bernanke are bailing out their friends on Wall Street and passing the buck to 300 million American taxpayers.

Personally I couldn’t agree more.  I bought a house, maybe I made a mistake, but I certainly am not asking you dear reader to pick up the slack for my mistake, or for you to be forced to take my investment recommendation and plow some of your own hard money in to real estate.

From Bloomberg:

“I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” Rogers, 65, said in an interview from Singapore. “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.”

“These companies were going to go bankrupt if they hadn’t stepped in to do something, and they should’ve gone bankrupt with all of the mistakes they’ve made,” Rogers said. “What’s going to happen when you Band-Aid and put some Band-Aids on it for another year or two or three? What’s going to happen three years from now when the situation’s much, much, much worse?”

“They’re ruining what has been one of the greatest economies in the world,” Rogers said. Bernanke and Paulson “are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.”

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    Type your comments here
    Morgan, you failed to mention how very angry he got when the host of the show asked him a viewer question (from a mortgage banker lol) if he had covered his shorts. I thought he was going to pop a vein he was so angr because he hadn't. Poor Jim made a bad call and now he is angry.

    Fannie Mae and Freddie Mac have historically served our nation wonderfully. It was not their weak underwriting standards that got us in this mess. They will eventually return to the very profitable organinzations they have normally been.

    Housing needs to recover. Allowing the GSEs to fail is simply not an option and poor poor arrogant Jim Rogers should have known better.
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    Mike it was their greed and the greed of others that got us in to this
    mess. Fannie and Freddie have been troubled by accounting scandals,
    executive malfeasance, excess and poor judgment through out the
    run-up.

    Whether he got burned is immaterial to the fact that the government
    has decided to back speculators and socialize the mortgage market
    while handing crumbs to homeowners who will not only lose their homes
    but get to pay for the clean up out of their taxes, should they be
    lucky enough to still be employed.
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    You also failed to mention that Jim Rogers says that the taxpayers have no say in this action. It is being voted on in Congress by the elected representatives of the taxpayers.

    Poor Jim. Poor poor Jim.
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    with representatives like laura richardson are our interests really
    being represented in this matter?

    http://blownmortgage.com/2008/05/24/congresswom...
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    The government is not doing anything that was not already implied. We all knew that the entities were "backed" by the federal govt whether or not their prospectus said so or not.

    I applaud the fed govt as the markets are doing as well because this was the right thing to do.

    How could it possibly help or 300 million citizens if we let these important businesses go bankrupt? Where would they go to buy a house? How would they refinance out of their bad loans? How would real estate ever recover?

    It could very well lead to something far worse than the Great Depression if these entities failed. Than trust me socialism would be next step.
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    The problem with the Faninie and Freddie "rescue" is that the American public is unaware that the reasons behind this is not saving the American public but saving the foreign investors, like France, China and Japan from taking their money that we depend on and running for the hills...this plan is being served to us on a platter as if it were to help each of us out...it isnt..it is a plan to "save" the American Financial system..that like our precious Bud Light..was already sold out to foreign entities...the average American just doesn't have the comprehension to understand the true workings of what is actually happening....

    I agree...with Peter Schiff and Rogers...this situation is just a bandaid..the system should be allowed to fail so as to allow us to create a better and sound one..the only thing the Fed has done is delay the inevitable future...and to use our "tax dollars" as a chip on the poker table...this bluff isn't going to work and we will lose it all...It is no different than the builder who put up his "house" as collateral to secure a loan...
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    The US Govt simply did what has always been implied. They stated that they are backing fannie and freddie "should" they need the backing.

    Perhaps we should just burn the other countries that have invested in the US. Yeah thats a good idea....note the scarcasm.

    Protecting the nations financial system is good. Not doing so is bad.

    Come on now people. Who in their right minds thinks we should let fannie and freddie fail? Can you say the GREAT GREAT DEPRESSION.
 

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