Fanny and Freddie collapse, McCain knew and was speechless...

OPEN LETTER TO THE SMALL TOWNS OF THIS COUNTRY, HOW CAN YOU CONTINUE TO SUPPORT THE REPUBLICANS, IF YOU HAVE, AFTER THEY HAVE OVERSEEN THE FINANCIAL COLLAPSE OF THE UNITES STATES OF AMERICA HOUSING MARKET?
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GOOD MORNING FLINT! 9/6/09
By Terry Bankert
http://goodmorningflint.blogspot.com/
Longer article with citations
or
http://goodmorningflint.blogspot.com/http://flinttalk.com/viewtopic.php?p=35564
* * * * *
Fannie Mae and Freddie Mac, government-chartered, shareholder-owned firms that provide liquidity to the housing market, have been whipsawed by the financial meltdown in the past year, losing some 90 percent of their value on fears of losses from mortgage defaults.[5]
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REFLECTIONS

This is an open letter to the small town residents and voters of this country.

The republicans are taking your vote for granted and playing you for fools.

I ask how can you continue to support the republicans that are the cause of and overseeing the financial collapse of the United States housing market. While doing so they are protecting their investor Republican base. Can you allow this to continue. The republicans knew the collapse of Fanny and Freddie was coming and forced a delay of the announce until after the republican convention. Why, McCain was part of the cause and Palin is clueless.

This happened on their watch. For this alone the republicans and their allies, big money, the theocons and the NRA must not be returned to power in the United States of America. You and your family will lose as this crisis unwinds.[trb]

THE ROLE OF GOVERNMENT ITS BUREAUCRACIES AND MILITARY IS TO KEEP THIS COUNTRY OUT OF HARMS WAY. THE REPUBLICANS HAVE FAILED MISERABLY.

How can you continue to support them. Is their position on life more important than the fiscal stability of the united states? If your answer is yes then there is something wrong with you and/or your leaders.[trb]

We must engage the base of the republican contender, they do not understand that there economic interest will be protected by the Democrats. We must engage in debate the theocons, evangelical, NRA and straight ticket republicans on these issues.

1. THIS FANNY AND FREDDIE BAILOUT WILL COST YOU AND YOUR CHILDREN BILLIONS.
2.AS TO THE REPUBLICANS ITS TIME TO GO, THIS ISSUE ALONE IS WHY.
3. IT IS IRONIC THAT THE REPUBLICAN POLITICAL CABAL THAT’S RUN THIS COUNTRY CALLS THEMSELVES CONSERVATIVES.
4.THEY HAVE CONSERVED NOTHING.
5.THEY HAVE SQUANDERED THE RESOURCES OF THIS COUNTRY.
6.WE CANNOT RISK FOR ANOTHER TERM THE REPUBLICANS AT THE HELM OF THIS COUNTRY.
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COLLAPSE OF THE HOUSING MARKET, CAUSED BY THE REPUBLICAN.

This happened on their watch. For this alone the republicans and their allies, big money, the theocons and the NRA must not be returned to power in the United States of America.[trb]

You and your family will lose as this crisis unwinds.[trb] Among the winners are the holders of trillions of dollars of the companies’ senior debt and mortgage-backed securities, which are owned by big financial institutions and central banks around the world. On Friday, the premium investors demand to hold debt issued by Fannie Mae and Freddie Mac rather than comparable Treasury notes and bonds began to fall as word of the government plan spread. [3]

U.S. to take control of Fannie and Freddie.[1]

The U.S. government plans to put government sponsored mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N) under federal control, the New York Times and Washington Post newspapers reported late Friday, in what could be the largest financial bailout in the nation's history.[1]

THE REPUBLICANS KNEW THIS WAS COMING, IN FACT IT WAS DELAYED UNTIL AFTER THEIR CONVENTION SO MCCAIN AMD PALIN COULD GET OUT OF TOWN AND BE HELD NOT ACCOUNTABLE FOR THE FINANCIAL COLLAPSE OF THESE BEDROCK AMERICAN INSTITUTIONS.

For months, the questions hanging over Fannie Mae and Freddie Mac, the beleaguered mortgage giants, have unnerved Wall Street and Main Street. Now, some answers are arriving — and with them a host of new questions.[3]

Senior officials from the Bush administration and the Federal Reserve on Friday informed top executives of mortgage finance giants Fannie Mae and Freddie Mac that the government was preparing to seize the two companies and place them in a conservatorship, officials and company executives briefed on the discussions said.[2]



The two government sponsored enterprises (GSEs) own or guarantee almost half of the country's $12 trillion in outstanding home mortgage debt. [1]

THE ROLE OF GOVERNMENT ITS bureaucracies AND MILITARY IS TO KEEP THIS COUNTRY OUR OF HARMS WAY.

THE REPUBLICANS HAVE FAILED MISERABLY. How can you continue to support them. Is their position on life more important than the fiscal stability of the United States? If your answer is yes then there is something wrong with you and/or your leaders.[trb]

GOVERNMENTAL BAIL OUT, THIS IS WHY GOVERNMENT HAS TO BE LARGE ENOUGH AND STAND READY TO HANDLE THE EMERGENCES OF THIS COUNTRY. REPUBLICAN POLICIES REDUCED THE LEVEL OF GOVERNMENTAL OVERSIGHT. MCCAIN WAS IN THE MIDDLE OF THIS IN CONGRESS. HE WAS ALSO IN THE MIDDLE OF THE SAVINGS AND LOAN CRISIS OF TWO DECADES AGO.

The plan, effectively a government bailout, was outlined in separate meetings that the chief executives were summoned to attend on Friday at the office of the companies' new regulator. The executives were told that, under the plan, they and their boards would be replaced, shareholders would be virtually wiped out, but the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.[2]


THIS WILL COST YOU AND YOUR CHILDREN BILLIONS. AS TO THE REPUBLICANS ITS TIME TO GO. IT IS IRONIC THAT THE REPUBLICAN POLITICAL CABAL THAT’S RUN THIS COUNTRY CALLS THEMSELVES CONSERVATIVES. THEY HAVE CONSERVED NOTHING. THE HAVE SQUANDERED THE RESOURCES OF THIS COUNTRY.

Financial companies desperately need Fannie Mae and Freddie Mac to keep buying mortgages because falling home prices and rising delinquencies are hurting their ability to make and hold loans, said Douglas Peta, a market strategist at J&W Seligman. "None of us pays cash for a house," Mr. Peta said. "Pretty much everyone, unless you are a Russian oligarch, gets a residential mortgage."[3]

It is not possible to calculate the cost of any government bailout, but the huge potential liabilities of the companies could cost taxpayers tens of billions of dollars and make any rescue among the nation's largest ever.[2]

FANNIE AND FREDDIE ARE HEADED TO BANKRUPTCY, UNDER THE REPUBLICAN WATCH, THE BLAME IS ON THE REPUBLICANS

Under a conservatorship, the remaining common and preferred shares of Fannie and Freddie would be worth little, and any losses on mortgages they own or guarantee could be paid by taxpayers. A conservatorship would operate much like a prepackaged bankruptcy, similar to what smaller companies use to clean up their books and then emerge with stronger balance sheets.[2]

The two firms would be placed in "conservatorship", the Washington Post said, citing sources familiar with the discussions.[3]

The value of the company's common stock would be diluted but not wiped out, while the holdings of other securities, including company debt and preferred shares, would be protected by the government, the Washington Post said.[3]

THEY WERE READY LAST WEEK, I BET MCCAIN BEGGED THEM TO NOT ANNOUNCE DURING THE REPUBLICAN CONVENTION, WHAT FRAUDS THESE REPUBLICAN ARE.

The executives were told that the government had been planning to announce the decision as early as Sunday, before the Asian markets reopen, the officials said.[2]
For months, administration officials have grappled with the steady erosion of the books of the two mortgage finance giants.[2]

THE REPUBLICANS HAVE ALLOWED FOREIGN COUNTRIES TO OWN THE DEBT OF THIS COUNTRY, WHAT SECURITY IS THAT.

But the declining housing and financial markets have apparently now forced the administration's hand. With foreign governments growing increasingly skittish about holding billions of dollars in securities issued by the companies, no sign that their losses will abate any time soon and the inability of the companies to raise new capital, the administration apparently decided it would be better to act now rather than closer to the presidential election in two months.[2]

HUGE EXPANSE IN THE SIZE OF GOVERNMENT UNDER A REPUBLICAN ADMINISTRATION

The action would represent a major escalation of the government's role in private lending. The government would be assuming vast obligations it has historically disavowed, potentially using taxpayer money to make up for private business decisions gone wrong.[2]

WE ARE BAILING OUT TWO PRIVATELY HELD INSTITUTIONS FREDDIE AND FANNY, SHARES HELD BY REPUBLICANS. THIS BAILOUT IS NOT TO SAVE THE COUNTRY, ONLY TO GIVE MONEY TO REPUBLICANS . MONEY THAT FREE MARKET DOCTRINE SAYS THEY SHOULD LOSE. THE REPUBLICANS ARE ALL ABOUT MONEY, THEIRS.

In an effort to contain the most profound financial crisis in generations, Treasury Secretary Henry Paulson, leaders of the Federal Reserve and other government officials have in recent months upended decades of precedent. A bailout of the two mortgage finance titans would follow a Fed rescue of investment bank Bear Stearns in March and earlier steps to provide implicit government backing to Fannie Mae and Freddie Mac.[2]

Fannie Mae and Freddie Mac have backed 70 percent of new mortgages in recent months, but both have incurred vast losses on their loan portfolios as the housing market has tanked. Paulson, the architect of the plan, and other government leaders view the mortgage firms as vital to preventing an even broader financial crisis and economic downturn.[2]

The two government sponsored enterprises (GSEs) own or guarantee almost half of the country's $12 trillion in outstanding home mortgage debt.[3]

REPUBLICANS AND THEIR BUDDIES IN CONGRESS HAVE HANDED OVER THE TAXPAYERS CHECK BOOK TO TWO PRIVATE COMPANIES WITH PRIVATE SHARE HOLDERS.

If the plan is enacted, it would bring under direct government control two companies that have a long and complicated history as hybrid public and private entities. In July, with the companies reeling from losses and as fears grew that they wouldn't be able to raise new cash privately, Paulson gained the power to invest government money in Fannie Mae and Freddie Mac through loans or buying company stock if he concludes it is necessary. In approving the authority, Congress gave Paulson power to invest an unlimited sum.[2]

Although the companies' shares initially soared on that news, their financial positions have worsened in recent weeks, along with their ability to raise money on the markets.[2]

If the government plan succeeds, uncertainty in the markets around Fannie Mae and Freddie Mac could subside, making it easier for the companies to get access to funding at cheaper rates.

DO YOU WANT TO RISK SPECULATION BY THE SAME PEOPLE WHO HAVE BROUGHT ABOUT THE COLLAPSE OF THE HOUSING MARKET.

That, in turn, could have a spillover effect in the overall market for mortgages, lowering interest rates and helping the battered housing market recover.[2]

WE CANNOT RISK FOR ANOTHER TERM THE REPUBLICANS AT THE HELM OF THIS COUNTRY.

Posted here 9/4/08 by Terry Bankert http://attorneybankert.com/


-where did this stuff come from--
[1]
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/06/AR2008090600427.html
[2]
http://www.chron.com/disp/story.mpl/business/5986528.html
[3]
http://www.reuters.com/article/newsOne/idUSN0527801420080906
[4]
http://www.nytimes.com/2008/09/06/business/06credit.html?ref=business
[5]
http://afp.google.com/article/ALeqM5glKHSt4dm_6uPHzFxTucQ6H_A9iQ
[trb]
Comments of Terry Bankert to include inattributed cap headlines.
http://attorneybankert.com/

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