Riddle me this.
Who in the Bush Administration, a senior official no less, would make a statement to someone at the New York Tims that the govenement may have to take conserveship of two of the largest mortage backers in the country, Fannie Mae and Freddie Mac?

First there is this:

They was a hearing meeting on June 3, 2008 regarding the following
WASHINGTON, DC – Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, this week will hold a second hearing on the state of the banking industry where he will question regulators on their role in the current economic downturn the United States is experiencing and potential solutions to stabilize the industry and the economy.  At the first hearing on this subject earlier this year, Dodd emphasized the important responsibility that regulators have to ensure that banks operate safely and soundly, and that they serve American taxpayers who back-stop the fund that insures bank deposits.

With the following present Chairman Dodd and Committee Members (which are not named)
Federal Deposit Insurance Corporation, Sheila Bair;  Comptroller of the Currency, United States Treasury, John Dugan;  Director, Office of Thrift Supervision, John Reich;  Chairman, National Credit Union Administration, JoAnn Johnson;  Vice Chairman, Board of Governors, Federal Reserve System, Donald Kohn
Senator Dodd is the Chairman the US Senate Committee of Banking, Housing & Urban Affairs  and Senator Schumer is one of the members.
US Senate Committee on Banking, Housing & Urban Affairs Website http://banking.senate.gov/public/index. ... committees

Then this:

A letter was sent out by Senator Schumer
“June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse”.

Then on Friday July 11, 2008

Run on Bank
LOS ANGELES —  IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.
The lender's failure came the same day that financial markets plunged when investors tried to gauge whether the government would have to save mortgage giants Fannie Mae and Freddie Mac.

The banking regulator said it closed IndyMac after customers began a run on the lender following the June 26 release of a letter by Sen. Charles Schumer, D-N.Y., urging several bank regulatory agencies that they take steps to prevent IndyMac's collapse.
Federal Regulators Close California Mortgage Lender Friday, July 11, 2008 AP Story on Fox News  http://www.foxnews.com/story/0,2933,381130,00.html

And this In the New York Times Friday July 11, 2008

Senior Bush administration officials told The Times that the government has a plan to place Freddie, (FRE: 7.75, -0.25, -3.12%) or Fannie (FNM: 10.25, -2.95, -22.34%) or both into a conservatorship if the companies reach insolvency.
NYTimes: Government Considering Takeover of Freddie, Fannie Friday, July 11, 2008 Fox News http://www.foxbusiness.com/story/market ... ie-fannie/

And this on Fox News

Fannie, Freddie Deny Liquidity Problems
The New York Times reported in its Friday (July 11)  that the Government is concidering a takeover of Fannie and Freddie if the finiancial situation deteriotes.
This was a focal point on Wall Street today as stocks took another downturn.
Federal Reseve denied having any discussion with the two compamies and Fannie and Freddie both released statements that they both were not in any position that any type of conservership would be necessary.
Fannie, Freddie Deny Liquidity Problems Friday, July 11, 2008 Fox News http://www.foxbusiness.com/story/market ... nt-window/

Now add

(as orginaly reported by the AP see; Run on Bank)  This letter from Senator Chuck Schumer dated June 26 to several banking regulators about taking steps to make sure IndyMac was not going to callaspe, but the run on the bank came from the release of the letter itself (as reported by the regulator agency) and that is why the regulatory board stepped in and they had to close the bank on the same day the article shows up about Freddie & Fannie in the NY Times.
Now this seems way too co-winky-dinky to me. Fannie and Freddie stocks took a big time major hit.  So did the whole market for that matter. Actually this could have caused  enormous damage to not only the mortage industry but the shock effect would have traveled deep into the countries economic core. Actually Wall Street is going to feel this for awhile and talk about putting consumer confindence which is really low right now anyway even lower. Of course add to it that Crude went up to $147.00.
My question is
Who in thier right mind would tell a newspaper this, even if was something that was necessary for the administration to do. This type of announcement if true, would have come from one of the regualtory offices that would have direct responsibilty for Freddie and Fannie which should be the Federal Resevre Board I think as well as from the administration.
The government would have made a calm and cool announcment and it would have been done with the fanfair of a press release .
This official, unnamed of course, would have had to be incredably stupid to tell the NY Times.
or
This was incredably well intentioned and specfic results were planed and counted on.
The take over of these two companies by the good old USA would add about 5 trillion or so to the national debt just in themselves and cause mortage rates to soar according to the followup article on Fox News.  Was this another Black Wednesday type scheme like what happen in Brittian in September 1992 in which Mr. Gygogy Soros sold short on Brittish pounds and made himself about 1.1 billion.  
The country would be in some really deep do-do if this had actually gone unchecked. The announcement that it was not correct got out but a lot of damage had alredy been done. There may be more fallout come Monday
I don’t known who in particular has/would/could have been hurt by this and who has/would/could gain as far as selling short on these stocks of Fannie & Freddie. A single someone or group with a lot of money invested in these stocks would stand to lose a fortune. The potential to weaken both Fannie and Freddie is of course obvious. Pension Funds, 401 K’s, Trust Accounts which end up being a lot of regular everyday people will be hurt by this which hurts the country as well in the overall picture.  I’m thinking more on the line of a really huge loss or gain to a single person or company if this was concieved to ‘bust’  that someone or was this concieved to hurt the USA ..
My instincts are telling me that this is not business as usual. You know what else got done Friday July 11, 2008. The bill for the mortage bail out was passed.



Here is the follow up story on what could have happen.
Analysis: A Nation Without Fannie or Freddie? What Would Happen Friday, July 11, 2008 Fox News http://www.foxbusiness.com/story/market ... e-freddie/

My head is starting to hurt.

Hmmm, let's see ..... Investment & Securities Bank Bailouts (Bear Stearns & now maybe Lehman Bros.) by the Federal Government; Mortgage bank takeovers (IndyMac & now probably FannieMae & FreddieMac) by the Federal Government.  Nationalized Health Care on everyone's agenda.  Nationalizing Oil Industry from the lips of Democrats.

Will there even be a Free Market in America in 2009?  How fast is our shift to outright Communism going to be?  Once the biggest industries are nationalized, why not nationalize the rest.

Remember, this is all taking place and we are NOT even in a Recession, let alone a depression.  All of this is being done based on the false idea that the U.S. economy and the free market has failed or will fail if the Government does not step in to take control.  And pretty much everybody seems ok with this -- at least in the media, on Capitol Hill, and in the White House.

What is going on here?

Oh, I forgot.  The Government will also probably take full control of the airline industry fairly soon, too.

Oh, that's right.  We've also already seen legislation that TELLS Americans what products they can and cannot buy (CFLs)

Not in the interests of safety or health (actually it's to the detriment of public safety and health), but rather in the interests of energy conservation.  

How soon will they tell you how many gallons of gas you are allowed to buy?   Which kind of car you are allowed to buy? How much bread?

One more.

Not Federal, but if I'm not mistaken, you are no longer allowed to buy any food with "trans-fats" in NYC.


At the local 7-11:

You: "I'd like a pack of cigarettes, a hot dog, two butterfingers, and a slurpee, please."
Clerk: "Hot dogs have been outlawed, and you're only allowed to buy ONE butterfinger. So, .....  that'll be $63.60;
$12 for the slurpee (the dollar doesn't go as far as it used to), and $51.60 for the cigarettes."

Eyas wrote:One more.

Not Federal, but if I'm not mistaken, you are no longer allowed to buy any food with "trans-fats" in NYC.


At the local 7-11:

You: "I'd like a pack of cigarettes, a hot dog, two butterfingers, and a slurpee, please."
Clerk: "Hot dogs have been outlawed, and you're only allowed to buy ONE butterfinger. So, .....  that'll be $63.60;
$12 for the slurpee (the dollar doesn't go as far as it used to), and $51.60 for the cigarettes."

You must remember, Comrade Barack is only doing this for your own good. Dear Leader has ruled that we will have a Free Open Minded Society, remember?

Heil Comrade Barack! Workers of the world, Unite!!

Of course, you can't smoke the cigarettes in the store.  You also can't smoke the cigarettes OUTSIDE the store.  Oh, and you certainly can't smoke them in your car.

And, obviously, if you live with anyone else, you can't smoke at home either .... you MONSTER.

-- "Hope you enjoy your $12 slurpee."
-- "Isn't that just crushed ice with flavoring?"  
-- "Yep, better drink it fast before they outlaw the flavorings."
-- (sluuurpp!) "AAAUUGH! Brain Freeze!"

I dont like your Insolent, anti Socialist Improved Democracy tone. I will have to turn you into the Secret Police Health Assistants. That will teach you to go against Communism Hope and Change.

Heil COmrade Obama!!! Workers of the World, Unite for a American and  Bipartisan in United American of Modernized Greatness of Change Hope!!!

Mr Jones wrote:Heil COmrade Obama!!! Workers of the World, Unite for a American and  Bipartisan in United American of Modernized Greatness of Change Hope!!!

Never!
  

I see your point.

Seig, ...

Heil!


Mein Messiah.