Open Thread 9-6-2008
Save Me -- Queen
The big story of the weekend seems to be the "conservatorship" of Freddie Mac and Fannie Mae. The American taxpayer will now be liable to pay for all the losses on the toxic mortgages these two poorly-run entities insured.
From Calculated Risk:
Bloomberg: Paulson Plans to Bring Fannie, Freddie Under Government Control
WSJ: U.S. Near Deal on Fannie, Freddie
WaPo: U.S. Nears Rescue Plan For Fannie And Freddie
NY Times: U.S. Rescue Seen at Hand for 2 Mortgage Giants
LA Times: Fannie, Freddie takeover possible
This is the bottom line: Freddie Mac and Fannie Mae and insured billions of dollars in toxic mortgages. The losses on these mortgages will end up exceeding the amount of money these companies have. If these companies were to go out of business, the entire secondary mortgage market would collapse, and our real estate markets will be in turmoil as transaction volume would plummet from its already anemic levels. The government believes it has to take over these companies in order to have a secondary mortgage market. A government takeover means the taxpayers of the United States just became liable for all the losses on the bad loans insured by these two companies. When you pay your taxes, you are now paying for a portion of all the bad mortgages given to speculators, flippers, fraudsters and the like.
.
It started off so well
They said we made a perfect pair
I clothed myself in your glory and your love
How I loved you,
How I cried...
The years of care and loyalty
Were nothing but a sham it seems
The years belie we lived a lie
I love you 'til I die
Save me, save me, save me
I can't face this life alone
Save me, save me, save me...
I'm naked and I'm far from home
The slate will soon be clean
I'll erase the memories
To start again with somebody new
Was it all wasted,
All that love?
I hang my head and I advertise
A soul for sale or rent
I have no heart I'm cold inside
I have no real intent
Save me, save me, save me
I can't face this life alone
Save me, save me, ooooohhhhh...
I'm naked and I'm far from home
Each night I cry I still believe the lie
I'll love you, 'till I die
Save me, save me, oh, save me
Don't let me face my life alone
Save me, save me, ooh...
I'm naked and I'm far from home
Save Me -- Queen
