Freddie Mac asks for $1.8bn from US taxpayers

Discussion in 'Politics, Religion, Social Issues' started by Cromulent, Aug 10, 2010.

  1. Cromulent macrumors 603

    Cromulent

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    #1
    http://www.ft.com/cms/s/0/801221f4-a3c3-11df-a100-00144feabdc0.html

    This is another bad sign for the global economy. If house prices fall again (which it looks like they are) the possibility of a double dip recession increases.

    The fact that Freddie Mac is asking for yet more money is bad news for countries like Britain. We end up with the raw end of the deal in any US recession.
     
  2. OllyW Moderator

    OllyW

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    #2
    They could put this towards it as nobody else seems to want it. ;)
     
  3. fivepoint macrumors 65816

    fivepoint

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    #3
    It gets worse. Let's hope to God this isn't true, and is just a rumor. The government paying the principal on underwater loans? Welcome to socialism. Our children would be paying off this debt forever.


     
  4. Cromulent thread starter macrumors 603

    Cromulent

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    #4
    This has little to do with Socialism. I consider myself a left winger and I am completely opposed to the government propping up the financial sector.
     
  5. yg17 macrumors G5

    yg17

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    Are you new to PRSI? With fivepoint, everything has to do with socialism and the liberal agenda ;)
     
  6. Cromulent thread starter macrumors 603

    Cromulent

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    Not really. I just thought I'd take the bait :).
     
  7. mcrain macrumors 68000

    mcrain

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    #7
    I'm confused. It's ok to make our children and grandchildren pay for our failures to tax enough to pay for all of the crap/debt that Reagan, Bush and Bush created, but it's not ok to keep Americans from falling into poverty, living on the streets, starving to death, and having to watch their kids cry at bedtime because they haven't eaten. Maybe you advocate people selling their children into slavery? (Rhetorical and possibly slightly off color (no pun intended) question: Could that be the true goal of the tea party? Not JUST old fashioned slavery, but child slavery too!)
     
  8. iShater macrumors 604

    iShater

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    #8
    Freddie and Fannie are a disaster. At this time though, it is damned if you do (More money given down a black hole) and damned if you don't (pull the plug and housing crashes). :rolleyes:
     
  9. kernkraft macrumors 68020

    kernkraft

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    #9
    "Freddie Mac asks for $1.8bn from US taxpayers"

    Well, Macs are expensive...
     
  10. flopticalcube macrumors G4

    flopticalcube

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    #10
    So... paying Wall Street millionaires to continue their raping of the markets is OK but paying to keep the US housing market intact is not? BTW, I don't agree with either and I doubt that any conservative government would have acted any different from the current liberal one.

    And if you think this is bad, just wait until Medicare/Medicaid and Social Security come knocking on the Feds door. :eek:
     
  11. mactastic macrumors 68040

    mactastic

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    #11
    Well, HCR -- as weak as conservatives managed to make it -- made improvements to the Medi- outlooks. And when SS comes knocking, just tell it to remove the income cap on taxation and all will be fine.
     
  12. flopticalcube macrumors G4

    flopticalcube

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    #12
    and you thought you had a fight with HCR!
     
  13. mactastic macrumors 68040

    mactastic

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    #13
    I'm ok with a fight.
     
  14. Rodimus Prime macrumors G4

    Rodimus Prime

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    #14
    So basically people who did the right thing get screwed yet again and people who tried to cheat the system win.

    This is a great country. Cheaters get ahead.
     
  15. fivepoint macrumors 65816

    fivepoint

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    #15
    You mean those POOR POOR people who were TRICKED into those variable rate loans!?! Who were tricked into buying a home beyond their means? You mean those poor poor people who the government purposefully set out to integrate into the 'ownership society' regardless of financial capability? It's too bad those POOR POOR companies Freddie and Fannie were tricked by the government and told they would be supported with tax dollars if they gave loans to people they knew couldn't pay! Guess the POOR POOR government will now have to deal with the results of those evil greedy capitalists!

    ;)
     
  16. mactastic macrumors 68040

    mactastic

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    Kinda like the POOR POOR management who were TRICKED into agreeing to provide health care and pensions for their union employees? Who were TRICKED into agreeing to proposals that they couldn't afford? You mean those POOR POOR managers who walked away with multi-million dollar golden parachutes? Guess the POOR POOR government and the POOR POOR pensioners will have to deal with the results of those generous socialists!

    ;)
     
  17. Gelfin macrumors 68020

    Gelfin

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    #17
    You know, I did the right thing, and I don't feel especially cheated. I live fairly comfortably, have a respectable savings, and my only debts are transient ones of convenience I could pay in minutes with no noticeable change to my financial situation.

    If that's being cheated, and people who are desperately trying to not be thrown into the streets as a consequence of their own bad decisions are "winning," then I am content to be cheated. Funny thing about doing the right thing is, it stays the right thing regardless of what anybody else is doing.
     
  18. Eraserhead macrumors G4

    Eraserhead

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    #18
    Maybe society should have educated them better. Or maybe the loans should have been better regulated so it was clearer to people what they were doing.
     
  19. sysiphus macrumors 6502a

    sysiphus

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    #19
    I really hope there's implied sarcasm there. Ignorance is no excuse. Anyone who doesn't take the time to learn the terms of a home loan--the biggest single hunk of spending/borrowing most people will have in their lifetime--is lazy, stupid, and deserves little sympathy. Whatever happened to personal responsibility?
     
  20. Eraserhead macrumors G4

    Eraserhead

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    Nope.

    Maybe they aren't educated well enough to understand them. Maybe if it had been pointed out that it would cost $200/month for a year and then $1000/month (or whatever) then they wouldn't have taken out the loan.
     
  21. mcrain macrumors 68000

    mcrain

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    #21
    I've trained for years and years and years, and I can guarantee you most attorneys and bankers have no freaking clue what's in most home loans, and more than that, what happens after the papers are signed.
     
  22. sysiphus macrumors 6502a

    sysiphus

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    #22
    Maybe they aren't well educated enough--you're right. So? Pay a lawyer etc to spend a couple hours to decipher the worst of the mess once you think you've gotten the loan drawn up as desired--sure, it'll cost some money, but it's a drop in the bucket compared to the total cost. I don't pretend to understand everything about home loans--but I can do a damn good job analyzing aerostructures...so I do my job, get paid, and use some of my money to pay somebody else to help me understand that which is important/I don't understand myself.

    I don't whine about how nobody told me how to replace a strut in my Volvo--I pay an expert to take care of it. Nobody has to be good at everything--understanding banking, repairing a car, etc etc...but knowing when to ask for/pay for help is simple common sense.

    It's not a perfect system, but as with most things--ignorance is not an excuse.
     
  23. mcrain macrumors 68000

    mcrain

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    #23
    So, what are people supposed to do when the bank, real estate agent, etc... represent themselves as being your representatives, but still screw you.
     
  24. sysiphus macrumors 6502a

    sysiphus

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    #24
    I suppose that all depends on what you define as "screwing you". If you ask them if you technically can get the loan (nevermind if it makes any sense, if you have a realistic shot of making the payments, etc...)--well, then, they can tell you exactly what you wanted to hear without doing anything unethical. I'm perfectly willing to concede that LOTS of people have gotten screwed--but it's just not that hard to see that an awful lot of people bought houses they never had a chance in the world of paying for. Around where I live, it was the people buying $1-2M houses who made $75-100k gross per year--good luck even getting ahead of the interest alone! But the math works out the same when you look at the people making ~50k trying to buy a house in the 500-1M range. It doesn't take a rocket scientist (or even a high-school calc class--freely available to anybody in public schools...getting back to you point about a lack of education in society) to see that an awful lot of people were willfully getting in over their heads. Heck, I could do the math for you on this stuff with what I learned when I was 15. Yes, there were slimeballs out there taking advantage of stupid and/or ill-educated people--but there's a TON of blame to shovel at people who abdicated all sense of personal responsibility, too.

    Being able to buy a house is not a right. This is something that the Dems in particular (but many on both sides) don't seem to realize. It's just like how if I have just enough money to make the down payment on a BMW, I'm probably going to buy a Honda Civic instead--because I'll actually be able to afford it, rather than barely get into the more expensive option, then whine and say "it's not fair/my fault" when I can't possibly keep up the payments.
     
  25. mactastic macrumors 68040

    mactastic

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    #25
    A healthy dose of skepticism is in order in any kind of contractual relationship. That goes for both sides, and in many cases was sorely lacking.
     

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