Unlimited Bailout: Fannie, Freddie Lifeline for 3 Years

Discussion in 'Economy' started by Neubarth, Dec 25, 2009.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Unlimited Bailout: Fannie, Freddie Lifeline for 3 Years

    U.S. Treasury Ends Cap on Fannie, Freddie Lifeline for 3 Years - Bloomberg.com
    Dec. 24 (Bloomberg) -- The U.S. Treasury Department will remove the caps on aid to Fannie Mae and Freddie Mac for the next three years, to allay investor concerns that the companies will exhaust the available government assistance.

    The two companies, the largest sources of mortgage financing in the U.S., are currently under government conservatorship and have caps of $200 billion each on backstop capital from the Treasury. Under the new agreement announced today, these limits can rise as needed to cover net worth losses through 2012.

    The Obama administration is “beginning to realize it’s not getting better and it’s not likely to get better” soon in the housing market, said Julian Mann, who helps oversee $5.5 billion in bonds as a vice president at First Pacific Advisors LLC in Los Angeles. “They don’t want the foreclosures now, so they’re saying, we’ll pay whatever it takes to continue to kick the can down the road.”
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    Well, the Obama administration may be finally realizing that "It is not getting any better." but He has still not taken any positive steps to put people back to work. We need drastic action now, or out cities will all be burning in the near future.
     

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