Fed takes boldest action since the Depression to rescue US mortgage industry

#1
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WA_Vol

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#1
#3
#3
TennTradition said:
Neither McCain or Obama strike me as dumb....maybe inexperienced in this area...but not dumb.
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I agree they are not dumb. However, I'm afraid the next President is going to inherit a full blown crisis on two fronts with Iraq and now this.

I think the country needed someone with a in-depth understanding of economics. Romney would have been a much better choice then either McCain or Obama IMO.
 
#4
#4
oklavol said:
I agree they are not dumb. However, I'm afraid the next President is going to inherit a full blown crisis on two fronts with Iraq and now this.

I think the country needed someone with a in-depth understanding of economics. Romney would have been a much better choice then either McCain or Obama IMO.
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Bring in Donald Trump!
 
#6
#6
oklavol said:
I agree they are not dumb. However, I'm afraid the next President is going to inherit a full blown crisis on two fronts with Iraq and now this.

I think the country needed someone with a in-depth understanding of economics. Romney would have been a much better choice then either McCain or Obama IMO.
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Well...no matter who you choose, you're going to get some weak points. McCain may be able to handle the war better, while Romney may have been able to handle economic crises better. I don't know...that's why you have advisers, I guess. I think that the most important thing is that you find someone intelligent enough to see past those who act like they know what they are talking about when they don't, someone honest enough with themselves to understand what they believe and what their motivations are, and someone who can communicate their thoughts well.

My big problem with Romney was that I have never been convinced the man has an idea what he stands for besides wanting to be elected to an office.
 
#7
#7
Dems and Repbublicans all campaigned on the housing market. Home ownerhip/equity became the new measure of prosperity. While there are certainly those who make tons on the "liquidity" of their real estate portfolio, most of the middle class owns one home, and they struggle to pay for it. Prosperity for the middle class should not be measured by the "quality of life" that they can afford through credit.

The truth of the matter is not everyone can afford a house. We are paying dearly for the idea that they could.
 
#8
#8
obama, clinton, or mccain don't have to know anything about the us mortgage industry. as long as they are smart enough to listen to people who do know they will be fine. i trust mccains and clinton's economic advisors FAR more than obamas (who seem to have an agenda).
 
#9
#9
droski said:
obama, clinton, or mccain don't have to know anything about the us mortgage industry. as long as they are smart enough to listen to people who do know they will be fine. i trust mccains and clinton's economic advisors FAR more than obamas (who seem to have an agenda).
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To heck with inflation...drop the rates and watch the money fly!
 
#11
#11
TennTradition said:
My big problem with Romney was that I have never been convinced the man has an idea what he stands for besides wanting to be elected to an office.
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All Romney does is fix problems. See his work with OIC for the Salt Lake City Winter Games and then his work on the economy in Massachusetts. Stands on abortion and gay rights are not even important right now. A president won't be able to single-handedly change that. The war and the economy are the two big things right now, and in my mind Romney would have been the best choice overall...but he's not a very good politician and campaigner.
 
#12
#12
zknott03 said:
All Romney does is fix problems. See his work with OIC for the Salt Lake City Winter Games and then his work on the economy in Massachusetts. Stands on abortion and gay rights are not even important right now. A president won't be able to single-handedly change that. The war and the economy are the two big things right now, and in my mind Romney would have been the best choice overall...but he's not a very good politician and campaigner.
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Both "problems" while maybe not being "media created" have definitely been blown completely blown out of proportion by the media.
 
#13
#13
When they are talking about "nationalizing" Fannie Mae to keep it from going bankrupt, you know things are bad.

The travails at Fannie Mae and Freddie Mac -- once rock-solid institutions -- had combined in a deadly cocktail with a fresh wave of panic over the solvency of the investment banks with heavy exposure to sub-prime debt.
Bear Stearns was forced to deny reports that it was running out of capital and may seek Chapter 11 bankruptcy protection. The spreads measuring default risk on its debt rocketed from 246 to 792 on Monday.
Mr Bond said the mortgage agencies may ultimately need to be nationalized. Fannie Mae has already seen its stock price drop 70pc since October at a cost of $50bn in market value, even though it has an implicit federal guarantee. "There is going to have to be a very big bail-out," he said.
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#14
#14
oklavol said:
When they are talking about "nationalizing" Fannie Mae to keep it from going bankrupt, you know things are bad.
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This is one guy at Barclays. It's written in a British paper. I don't think this is a big indicator that there is a nationalization movement.
 
#18
#18
volinbham said:
This is one guy at Barclays. It's written in a British paper. I don't think this is a big indicator that there is a nationalization movement.
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Fannie Mae had been in trouble earlier for accounting corrections (Washington Post 12/2006):

Fannie Correction: 'What If?' - washingtonpost.com

Fannie Mae's accounting corrections, which involved a multitude of additions to and subtractions from profits it had previously claimed, had the net effect of reducing the company's past earnings by $6.3 billion.
Of all the numbers Fannie Mae corrected, the capital cushion is one of the most consequential. It is meant to assure that the company can withstand a sharp financial reversal. Some policymakers fear that if Fannie Mae became insolvent, it could send shock waves through the financial system and trigger a taxpayer bailout. Raines's 2003 testimony about the company's capital position served as a counterpoint to such warnings. It came as lawmakers were considering stepping up regulation of Fannie Mae and its rival Freddie Mac.
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This will probably be their undoing.
 
#20
#20
droski said:
obama, clinton, or mccain don't have to know anything about the us mortgage industry. as long as they are smart enough to listen to people who do know they will be fine. i trust mccains and clinton's economic advisors FAR more than obamas (who seem to have an agenda).
Click to expand...

Exactly how do you see Obama's agenda in this arena differing from Clinton's? They're reading from the exact same playbook.
 
#21
#21
Do you say that because they are both dems? Depending on their economic advisers, I could see them taking quite different approaches.
 
#22
#22
Lexvol said:
Dems and Repbublicans all campaigned on the housing market. Home ownerhip/equity became the new measure of prosperity. While there are certainly those who make tons on the "liquidity" of their real estate portfolio, most of the middle class owns one home, and they struggle to pay for it. Prosperity for the middle class should not be measured by the "quality of life" that they can afford through credit.

The truth of the matter is not everyone can afford a house. We are paying dearly for the idea that they could.
Click to expand...

Very true.

I believe in the Randy Moss way: Straight cash homie
 
#23
#23
zknott03 said:
All Romney does is fix problems. See his work with OIC for the Salt Lake City Winter Games and then his work on the economy in Massachusetts. Stands on abortion and gay rights are not even important right now. A president won't be able to single-handedly change that. The war and the economy are the two big things right now, and in my mind Romney would have been the best choice overall...but he's not a very good politician and campaigner.
Click to expand...
yeah lets just sweep some of the problems under the rug and work on others....i disagree
 
#24
#24
Bear Sterns almost went bankrupt over night due to margin calls, but the NY fed and JP Morgan are going to bail them out. Whats funny is that the CEO of BSC said that everything is fine two days ago on CNBC. Liar

Bear Stearns Bailed Out by Fed, JPMorgan: Financial News - Yahoo! Finance

Some one bought 55,000 BSC Puts with a strike price at $30 when it was trading at $65 last week. Also these puts would have expired worthless on March 20th if the stock didnt move down. Today the stock is down 40% Someones crazy bet is paying off huge! The options are up 1000% today.

So 55,000 x 50 cents (per option for 100 shares)= $2.75 million bet and now its worth 55000 x $5.50 (per option for 100 shares)= over $30 million. WOW at least someone is making $$ in this market.
 
#25
#25
VolsNSkinsFan said:
Bear Sterns almost went bankrupt over night due to margin calls, but the NY fed and JP Morgan are going to bail them out. Whats funny is that the CEO of BSC said that everything is fine two days ago on CNBC. Liar

Bear Stearns Bailed Out by Fed, JPMorgan: Financial News - Yahoo! Finance

Some one bought 55,000 BSC Puts with a strike price at $30 when it was trading at $65 last week. Also these puts would have expired worthless on March 20th if the stock didnt move down. Today the stock is down 40% Someones crazy bet is paying off huge! The options are up 1000% today.

So 55,000 x 50 cents (per option for 100 shares)= $2.75 million bet and now its worth 55000 x $5.50 (per option for 100 shares)= over $30 million. WOW at least someone is making $$ in this market.
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that's a pretty good example of legal insider trading.
 
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