U.S. Seizes Fannie, Freddie Mac .... I smell a depression

[briann]

http://www.foxbusiness.com/story/markets/government-seied-fannie-mae-freddie-mac/

This is hugely significant.   These trillion dollar banks needing to be bailed out THIS early in the real estate collapse could be the beginning of something truly monumentally disastrous in the world economy.

[Zionist Revolutionary]

I've been thinking for a long time that historically, we're due for a depression. I base that on nothing but the pattern of history. the events that have come to pass are eerily similar to that of the 20's and 30's.

[P J C]

You're right but it doesn't have to be. The left's answers to everything is Raise taxes.
I say:
1. Drill to ease the price of oil impact on the citizens
2. find alternative energy
3. Have a more effective way to have the full mortgage payments made to prevent further issues similar to this
4. Mortgage companies to choose their clients more wisely (not some schvug living off of welfare)
5. Cut pork barrel spending.
6. Become financially independent in every aspect.
7. fight unions and drive them out of schools.
8. lower taxes and get more value from which the govt has.

[RanterMaximus]

To save the economy we need every Democrat voted out.  Fat chance on that.

[Zionistforever]

i actualy have looked forward to a depression, (my opion which i believe i should be entitled to) in times of severity, and times where people look for answers they are desperate and look to the hand that feeds. i believe even leftist jews will learn the truth, our bretheren will reunite, once reducated. we, JTF can be the voice of reason in our darkest times, where we will topple our self hating israeli government, and rebuild it with those who have israel and her people in their intrests. and america can be great once again.

[GodGunsAndGlory]

i actualy have looked forward to a depression, (my opion which i believe i should be entitled to) in times of severity, and times where people look for answers they are desperate and look to the hand that feeds. i believe even leftist jews will learn the truth, our bretheren will reunite, once reducated. we, JTF can be the voice of reason in our darkest times, where we will topple our self hating israeli government, and rebuild it with those who have israel and her people in their intrests. and america can be great once again.

Yeah... depressions are great, we get socialist and protectionist and then we go to war which gets out of the depression, but then later socialism is given credit.

Depressions are just lovely.

[Masha]

I don't get it. What kind of capitalism or private enterprize we are supposed to have if at any sign of trouble the government seizes control and buys out the troubled company. If you are a private company then you yourself take the risk. That's the idea behind free market. If you are a private individual then you yourself assume the risk of investing with or trusting a private company, and if they fail, it's your loss. What happened to personal responsibility? These companies have been irresponsibly giving morgages right and left to people who should not have beeen buying houses. These people have been irresponsibly borrowing money that they had no means of returning (apeculating on the hope to "flip" the property). And now the American tax payer is supposed to bail these irresponsible companies and irresponsible individuals by paying out trillions of dollars to cover the losses? What we have is not a true free market, it's a kind of socialism, if you ask me.

[RanterMaximus]

If these companies are failing, it is not the job of the government, i.e. taxpayers to bail them out!

[Zelhar]

The Government acts as everybody expected it to do. It was well known that they there was  an unofficial obligation from the government not to let them default.

[Dr. Dan]

no, the economy is going through a cycle..in about 4-8 years it will rise again..right now, it is half way falling downl to its bottom.

[muman613]

Shalom,

Stocks did pretty well today... My companies stock opened up .50. This is not the end of the world...

muman613

[Bodhi]

I don't get it. What kind of capitalism or private enterprize we are supposed to have if at any sign of trouble the government seizes control and buys out the troubled company. If you are a private company then you yourself take the risk. That's the idea behind free market. If you are a private individual then you yourself assume the risk of investing with or trusting a private company, and if they fail, it's your loss. What happened to personal responsibility? These companies have been irresponsibly giving morgages right and left to people who should not have beeen buying houses. These people have been irresponsibly borrowing money that they had no means of returning (apeculating on the hope to "flip" the property). And now the American tax payer is supposed to bail these irresponsible companies and irresponsible individuals by paying out trillions of dollars to cover the losses? What we have is not a true free market, it's a kind of socialism, if you ask me.

  It most certainly is...l.The US is a fully socialist state now, the only interesting thing is that the US economy is based 85% on weapons and war, we no longer produce anything of any value......look around your home, look in your garage, what percentage of quality products that you own were made in the USA  ?

  It's kind of disheartening to think about the reality of the situation, we still make the best fighter jets and long range ICBM's, but we can't make a decent television, a stereo, an automobile, a DVD player, or a computer, nothing, we manufacture nothing of value.... it's so sad.

  Prisons are the highest private growth industry in the US outside the military industrial stuff....it's a shame.

[muman613]

I don't get it. What kind of capitalism or private enterprize we are supposed to have if at any sign of trouble the government seizes control and buys out the troubled company. If you are a private company then you yourself take the risk. That's the idea behind free market. If you are a private individual then you yourself assume the risk of investing with or trusting a private company, and if they fail, it's your loss. What happened to personal responsibility? These companies have been irresponsibly giving morgages right and left to people who should not have beeen buying houses. These people have been irresponsibly borrowing money that they had no means of returning (apeculating on the hope to "flip" the property). And now the American tax payer is supposed to bail these irresponsible companies and irresponsible individuals by paying out trillions of dollars to cover the losses? What we have is not a true free market, it's a kind of socialism, if you ask me.

  It most certainly is...l.The US is a fully socialist state now, the only interesting thing is that the US economy is based 85% on weapons and war, we no longer produce anything of any value......look around your home, look in your garage, what percentage of quality products that you own were made in the USA  ?

  It's kind of disheartening to think about the reality of the situation, we still make the best fighter jets and long range ICBM's, but we can't make a decent television, a stereo, an automobile, a DVD player, or a computer, nothing, we manufacture nothing of value.... it's so sad.

  Prisons are the highest private growth industry in the US outside the military industrial stuff....it's a shame.

Well that may be where you live but there is massive development going on in the Silicon Valley where I work. As a matter of fact, in the last week, I got calls from two recruiters. There is ample development going on in America.

muman613

PS: We are an American company doing business all around the world. Our chips are in most HDTVs sold today.

[briann]

I've been thinking for a long time that historically, we're due for a depression. I base that on nothing but the pattern of history. the events that have come to pass are eerily similar to that of the 20's and 30's.

Yes.  The fact that we have already had more banks bailed out than from the entire time between after WWII and 2007 tells you something.

I'm a bit of an expert in 20's and 30's economic history, and you are certainly right.

Brian

[briann]

I don't get it. What kind of capitalism or private enterprize we are supposed to have if at any sign of trouble the government seizes control and buys out the troubled company. If you are a private company then you yourself take the risk. That's the idea behind free market. If you are a private individual then you yourself assume the risk of investing with or trusting a private company, and if they fail, it's your loss. What happened to personal responsibility? These companies have been irresponsibly giving morgages right and left to people who should not have beeen buying houses. These people have been irresponsibly borrowing money that they had no means of returning (apeculating on the hope to "flip" the property). And now the American tax payer is supposed to bail these irresponsible companies and irresponsible individuals by paying out trillions of dollars to cover the losses? What we have is not a true free market, it's a kind of socialism, if you ask me.

Its more complicated than that.  Yes... when a business fails you let it fail.. and dont bail it out. 

BUT with banks....  when one fails... and it is not bailed out... it can cause widespread panic... which will lead to many more banks failing... becuase people rush to withdraw their deposits.  This used to happend regularly before WWII

[briann]

no, the economy is going through a cycle..in about 4-8 years it will rise again..right now, it is half way falling downl to its bottom.

It may rise... but again... this cycle is NOT just another cycle.  There are a whole host of things that make this one different.

I'm telling you... just below the surface... there could potentially be disaster.  If Real Estate falls to where I think it might fall... the amount of foreclosures will continue to rise... and the pressure on banks will reach a breaking point.

Again.. .this all depends upon the Real Estate market.  If it flattens out soon... than this will be just another cycle... but if it continues with no bottom in site... we will be in store for something awful.

[Dr. Dan]

no, the economy is going through a cycle..in about 4-8 years it will rise again..right now, it is half way falling downl to its bottom.

It may rise... but again... this cycle is NOT just another cycle.  There are a whole host of things that make this one different.

I'm telling you... just below the surface... there could potentially be disaster.  If Real Estate falls to where I think it might fall... the amount of foreclosures will continue to rise... and the pressure on banks will reach a breaking point.

Again.. .this all depends upon the Real Estate market.  If it flattens out soon... than this will be just another cycle... but if it continues with no bottom in site... we will be in store for something awful.

listen, you remember the stock market and when it crashed in 1999 and 2001?  It rose again.  IT was a matter of time that the real estate bubble would burst.  It finally did.  It will get better...It will only get worst if you keep thinking it will get worst

[Zionistforever]

i actualy have looked forward to a depression, (my opion which i believe i should be entitled to) in times of severity, and times where people look for answers they are desperate and look to the hand that feeds. i believe even leftist jews will learn the truth, our bretheren will reunite, once reducated. we, JTF can be the voice of reason in our darkest times, where we will topple our self hating israeli government, and rebuild it with those who have israel and her people in their intrests. and america can be great once again.

Yeah... depressions are great, we get socialist and protectionist and then we go to war which gets out of the depression, but then later socialism is given credit.

Depressions are just lovely.

you completly missed my point, in times of disarey people look for answers, jtf may take off in america. we may become a mass movement in the strongest country in the world, in addition we will have people who wish to lead us to greatness controlling the government.

[Manch]

I don't get it. What kind of capitalism or private enterprize we are supposed to have if at any sign of trouble the government seizes control and buys out the troubled company. If you are a private company then you yourself take the risk. That's the idea behind free market. If you are a private individual then you yourself assume the risk of investing with or trusting a private company, and if they fail, it's your loss. What happened to personal responsibility? These companies have been irresponsibly giving morgages right and left to people who should not have beeen buying houses. These people have been irresponsibly borrowing money that they had no means of returning (apeculating on the hope to "flip" the property). And now the American tax payer is supposed to bail these irresponsible companies and irresponsible individuals by paying out trillions of dollars to cover the losses? What we have is not a true free market, it's a kind of socialism, if you ask me.

Masha, great point!  The economy has to have an opportunity of burning out irrational supply excess, lean-out demand side and find new efficiencies. It is served best when the government does nothing at all. But do you really think that effeminate, 50% Obama-supporting American electorate would vote for a party which advocates such tough love economic policies? There was a great article in Forbes, this month on this very subject, written by brilliant Paul Johnson: "Let Economies Cure Themselves"

[SavetheWest]

I heard the reason for this seizure is the insurance companies.  If huge banks and lenders start failing the insurance companies won't be able to cover the massive claims.  You could have a domino affect on all business.  

We can attribute this whole mess to Bill Clinton and the Republicans who deregulated Depression area protections on banks from 1933.  Brian, correct me if I'm wrong but wasn't it in 1999 that they signed that law that created the whole mess.  Bush and Clinton are to blame for letting this happen.  Also, Robert Rubin, Clinton's Treasury Secretary, quit and went to Citigroup and lobbied to deregulate the protections.  He never was investigated for ethics violations too.  He also lobbied to let poor people and minorities to get into more loans as well.  While that sounds great, look at the results from letting tons of morons get into a house when they could never have afforded to in the first place.  You know most of them didn't even have $100 for a down payment.

They were probably like, "I need me a house yo." Now, you and I pay for that stupidity.  

[Zionistforever]

I heard the reason for this seizure is the insurance companies.  If huge banks and lenders start failing the insurance companies won't be able to cover the massive claims.  You could have a domino affect on all business.  

We can attribute this whole mess to Bill Clinton and the Republicans who deregulated Depression area protections on banks from 1933.  Brian, correct me if I'm wrong but wasn't it in 1999 that they signed that law that created the whole mess.  Bush and Clinton are to blame for letting this happen.  Also, Robert Rubin, Clinton's Treasury Secretary, quit and went to Citigroup and lobbied to deregulate the protections.  He never was investigated for ethics violations too.  He also lobbied to let poor people and minorities to get into more loans as well.  While that sounds great, look at the results from letting tons of morons get into a house when they could never have afforded to in the first place.  You know most of them didn't even have $100 for a down payment.

They were probably like, "I need me a house yo." Now, you and I pay for that stupidity.  

  or son have some respect, my dadys a veteren also you whities owe me for alls the crap you caused my kin.