Treasury set to bail out Fannie Mae, Freddie Mac

SAN FRANCISCO (MarketWatch) -- The Treasury Department is expected to announce as early as this weekend a plan to bail out and recapitalize collapsing home mortgage giants Fannie Mae and Freddie Mac in one of the biggest government rescues in U.S. history.

Such a plan would end a long downward spiral for the firms, which the government created to help expand home ownership and provide a secondary market for home loans.
Rep. Barney Frank (D.-Mass.) confirmed in a statement Saturday that Treasury Secretary Henry Paulson is set to put the federal government in control of the two troubled mortgage owners. But Frank, who is chairman of the House Financial Services Committee, said he had no details on the intervention plan. Officials at the Treasury Dept. could not be reached for comment.{46D1439E-A2C4-418C-9BE0-09BE0B9EE60D}&dist=msr_7

"Obama, McCain Back Action to Rescue Freddie, Fannie (Update1)

By Kim Chipman and Edwin Chen

Sept. 6 (Bloomberg) -- Presidential candidates Barack Obama and John McCain gave their support for federal action to rescue Freddie Mac and Fannie Mae while saying steps must be taken to ensure the mortgage giants don't keep passing losses off to taxpayers. "

"McCain, 72, said in the CBS interview that he also spoke with Paulson, who assured him that when the housing market picks back up ``taxpayers are going to be the first to be paid off.''

No votes yet

The government = you & me

To candidate McCain.

Both the candidates have ties to lobbyists at Freddie Mac and Fannie Mae, "
At least 20 McCain fundraisers have lobbied on behalf of Fannie Mae and Freddie Mac, netting at least $12.3 million in fees over the past nine years.

Political insiders Arthur B. Culvahouse Jr., picked by McCain to vet his vice presidential nominees, and Jim Johnson, picked by Obama to perform the same function, once worked for the mortgage giants.

And for years, Rick Davis served as president of an advocacy group led by Fannie Mae and Freddie Mac that defended the two companies against increased regulation."

But they are the candidates of change and no more of the same.

Nixon signed into law;

"As I sign the Emergency Home Finance Act of 1970, I emphasize again how important it is that leaders in both the executive and the legislative branches of Government-and in both political parties-work together in a highly cooperative and highly imaginative manner in addressing the Nation's housing problems. Those problems are still severe. While housing starts have increased in the past few weeks, housing production is still substantially below desirable levels. We must improve this performance, not only to meet the growing demand for housing but also to make up the large housing deficit which has accumulated over the past 4 years, and to permit people to move from the many substandard housing units which are now in existence. "

And in 1984, 1989, and 1992, the federal government fiddled and diddled with the programs, and did little with regards to over sight and here we are with both parties still proposing tax payer bail outs of another mess.

And both parties field candidates that use some real fine and fancy speeches and rhetoric, and then betray the principles they hold dear, because the collapse of the system created by years of neglect, has world wide consequences.

What country do we invade next, to distract us from the bigger issues we face.

beginning to feel like I am paying for everyone else but myself.

I love inflation. Let's print more money.

Chris, You're admitting that you disagree with W? I thought he could do no wrong in your eyes. And I thought that you so-called conservatives loved corporate welfare! I especially like your "Let's print more money" line. We may need to do that if we continue electing borrow and spend Republicans, instead of a pay-as-you-go truly fiscally conservative Democrat ala Bill Clinton!

We are a nation of people and not merely individuals, we are not separated by imaginary fences and have no connection in some way to each other.

Leadership in Washington, one candidate says he will bring change to Washington, especially now with his pick of V.P., as if the V.P. matters all that much, will not make matters right and yet supports another tax payer bail out.

Where is the over sight? Who was watching the heads of these quasi businesses set up to promote and advance home ownership, should that even be a government responsibility, while the loans were made with shaky foundations.

Where was the regulation, well, there was none or very little, because the platform tells us that regulation is bad and we want liberty and in the end, we get more of the same from lapses in judgment, financial collapse, tax payers pay the tab until next time.

Matter of fact Phil Gramm one of the architects of the current debacle was still a campaign advisor and confident, before questions about his policies surfaced, and then Gramm reseeded back into the shadows, only to possibly return as a valued advisor.

Agents of change, or purveyors of more of the same.

Time and history, tend to show us, more of the same.

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