Comments on: How Much it Really Cost to Bailout Fannie Mae and Freddie Mac

By: Hey, Andy Did You Hear About This One? « Around The Sphere

Hey, Andy Did You Hear About This One? « Around The Sphere — Mon, 20 Jul 2009 16:28:34 +0000

[...] from the infusion of $28-$50 billion. On the other hand, it’s also worth noting that the Fannie Mae/Freddie Mac bailouts will ultimately cost between $25 billion and $2.5 trillion, depending upon who is doing [...]

By: Fannie Mae wants more money « Can I Just Finish My Waffle?

Fannie Mae wants more money « Can I Just Finish My Waffle? — Sun, 01 Mar 2009 18:39:14 +0000

[...] new from Fannie Mae? Well, guess what, they are now asking the Treasury for $15.2 billion more (after the bailout). The US government-controlled Fannie Mae reported a loss of 25.2 billion dollars in the fourth [...]

By: dimi

dimi — Sun, 07 Sep 2008 17:16:33 +0000

On the recent announcement of FNM and FRE bailout.

What if the treasury allows other financial institutions to dump their toxic instruments into the FNM and FRE pool at high rates, so that their disposal will be government's obligations?

This, if allowed, will effectively also bail out all the big banks and Wall Street at the expense of the taxpayers.

Would something like that be legal?
Would something like that be ethical?

I believe that this is very important and someone should be asking this question.

By: Edwin Watson

Edwin Watson — Sun, 07 Sep 2008 12:14:03 +0000

Hi Don,
I believe we live in hazardous times.Here in Australia we tend to ignore or overlook what happens in the U.S.believing it wont happen here or that our mining of our resources will always pull us through.What is an anomoly however is that since July we have witnessed a strengthening U.S.dollar against most currencies.(incl.
ours) and a consequent decline in the value of commodities.How has this come about,when we all are aware that your country must be
printing enormous amounts of currency simply to stay afloat and yet
the value of the $ is appreciating against other currencies.Surely
the dollar should depreciate,or is it the case of "when America
sneezes,the rest of the world catches a cold"

By: Ryan

Ryan — Sun, 07 Sep 2008 05:38:45 +0000

Don,

Very good analysis. The magnitude of this alone is scary....the domino effect that this is going to create will be felt for a very very long time. Many nations around the globe are going to see a dramatic shift in their purchasing power.

The fortunate part is that the public is about to get a crash course in monetary policy, exhange rates, fiscal policy, etc...,

The unfortunate part is that by the time they are up to speed, it will have already happened.