It is highly unlikely there will be another bank failure of the indy mac size with the banks allowed to borrow at the discount window. indymac was a special case IMO. As for the "5 trillion bailout" that is all BS. Most of Fannies and Freddies mortgages were issued prior to 2006 and they are still originating profitable mortgages. I'd say in a worse case scenerio where the housing market drops say another 25% that the bailout would be somewhere in the 100 bill range (though let's remember those would probably be loans and therefore should eventually be paid back not free money). i expect that 20-30 billion of loans would be more than enough to keep them going until they can recover. we heard the same BS about bear stearns where the losses by the fed are almost zero because of the quality of the assets. by no means was it a "bailout" imo.
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Fannie and Fred on the Brink
- Thread starter WA_Vol
- Start date
It is highly unlikely there will be another bank failure of the indy mac size with the banks allowed to borrow at the discount window. indymac was a special case IMO. As for the "5 trillion bailout" that is all BS. Most of Fannies and Freddies mortgages were issued prior to 2006 and they are still originating profitable mortgages. I'd say in a worse case scenerio where the housing market drops say another 25% that the bailout would be somewhere in the 100 bill range (though let's remember those would probably be loans and therefore should eventually be paid back not free money). i expect that 20-30 billion of loans would be more than enough to keep them going until they can recover. we heard the same BS about bear stearns where the losses by the fed are almost zero because of the quality of the assets. by no means was it a "bailout" imo.
Hang on oklavol, Wells Fargo (the 5th largest bank in the USA) reported better than expected numbers AND hiked it's dividend, that's right hiked the dividend at a time like this. I know things seem rough right now and it is for some folks, but it's not the end of the world. We have been though tough times before and made it ok, we will be fine again. I will say, we really need to get the dollar up. Just my thoughts man...
Shhhh....you're gonna kill Oklavol's Chicken Little routine.
The economy is dealing with the onset of stagflation -- one of the most complicated issues to deal with. While Presidents have often been elected on or blamed for the economy's performance -- it's rare that we blame the right person. It's really quite simple -- the President simply doesn't have enough control over the economy to create or destroy such wealth. It all boils down to government intervention and how much or little is the right amount. I don't have an answer for that right now....shaky times.
agreed. clinton is supposed to be given credit for the jobs created because of the dotcom boom? bush penalized because of 9/11 and the dotcom bust? the housing bust was essentially caused by the fed since they kept rates artificially low during the clinton and early bush years. bush is major f-up, but this isn;t his fault IMO. the fact is that baring major tax increases or major tax cuts the president has virtually no effect on the economy.
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