Fannie Mae & Freddie Mac Get Bailed Out At Taxpayer Expense

^{What is Congress going to do with these 'White Elephants"?  Our government is BROKE!} 
At the same press conference, United States Treasury Secretary Henry Paulson, stated that placing the two GSEs into conservatorship was a decision he fully supported, and that he advised "that conservatorship was the only form in which I would commit taxpayer money to the GSEs." He further said that "I attribute the need for today's action primarily to the inherent conflict and flawed business model embedded in the GSE structure, and to the ongoing housing correction."^[1]
The same day, Federal Reserve Bank chairman Ben Bernanke stated in support: "I strongly endorse both the decision by FHFA Director Lockhart to place Fannie Mae and Freddie Mac into conservatorship and the actions taken by Treasury Secretary Paulson to ensure the financial soundness of those two companies."^[4] The following day, Herbert M. Allison was appointed chief executive of Fannie Mae. He came from TIAA-CREF.^[5]

The combined GSE losses of US$14.9 billion and market concerns about their ability to raise capital and debt threatened to disrupt the U.S. housing financial market. The Treasury committed to invest as much as US$200 billion in preferred stock and extend credit through 2009 to keep the GSEs solvent and operating. The two GSEs have outstanding more than US$ 5 trillion in mortgage backed securities (MBS) and debt; the debt portion alone is $1.6 trillion.^[6] The conservatorship action has been described as "one of the most sweeping government interventions in private financial markets in decades,"^[7] and one that "could turn into the biggest and costliest government bailout ever of private companies".^[8]
With a growing sense of crisis in U.S. financial markets, the conservatorship action and commitment by the U.S. government to backstop the two GSEs with up to US$ 200 billion in additional capital turned out to be the first significant event in a tumultuous month among U.S.-based investment banking, financial institutions and federal regulatory bodies. By September 15, 2008, the 158 year-old Lehman Brothers holding company filed for bankruptcy with intent to liquidate its assets, leaving its financially sound subsidiaries operational and outside of the bankruptcy filing. The collapse is the largest investment bank failure since Drexel Burnham Lambert in 1990.^[9][10] The 94 year-old Merrill Lynch accepted a purchase offer by Bank of America for approximately US$ 50 billion, a big drop from a year-earlier market valuation of about US$ 100 billion. A credit rating downgrade of the large insurer American International Group (AIG) led to a September 16, 2008 rescue agreement with the Federal Reserve Bank for a US$85 billion dollar secured loan facility, in exchange for a warrants for 79.9% of the equity of AIG.<sup>[11][12][13][14

You need to put pressure on you Representative.  They recently made this statement:  The era of Fannie Mae and Freddie Mac is over, and it is time to formally close them down. The activities of the two government-sponsored enterprises (GSEs) played a major role in the 2008 financial crash and have so far cost taxpayers over $150 billion to cover their losses; more is yet to come. Efforts to reform or refine their roles are misguided at best. Nothing short of Fannie Mae and Freddie Mac's complete elimination will enable a healthy housing market to reappear.</sup>      http://libertyandpride.com/contact-congress/ 

The Battle for our Rights as Citizens

The BATTLE for our RIGHTS as citizens.

When we buy a home, we expect that we will be gaining equity through investment in our home. But lately that's not been the case due to what I perceive as lack of government oversight of the Government Sponsored Enterprises (G.S.E.s) such as Fannie Mae and Freddie Mac.

We as citizens, and taxpayers, need to demand more from our elected officials. I will site more specifics as this blog evolves. In the meantime, please go to the web, look up who is supposed to represent your rights in Washington D.C. and get prepared to finally have your voice heard by them. Here is the link for you to use to find out who your representatives are. Notice, I said the word "representatives'', because these people are actually supposed to represent you in Washington D.C., not their own special interests. Now, here is that link:  http://libertyandpride.com/contact-congress/  Now go do your homework, and be ready to contact your representatives.

We will prevail and 'TAKE' our country back from 'THE TAKERS' who are destroying our nation!

New to the blog, but not to the mortgage business

I wanted to see if I could make a difference, and help anyone who has questions about:

• What's needed
• How to get started
• Process to close escrow