December 31, 2009

Bank Heist of the Century - Congress, Bush, Obama, the NAR, Fannie and Freddie conspire to steal $400 billion from US taxpayers


We said for years that Fannie and Freddie would fail.

We were wrong.

They didn't fail.

It all went according to plan.


Damn, those grifters were good. Real good.

That's $1200 per citizen, if you're keeping score at home.

U.S. to Lose $400 Billion on Fannie, Freddie

Dec. 31 (Bloomberg) -- Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400 billion, according to Peter Wallison, a former general counsel at the Treasury who is now a fellow at the American Enterprise Institute.

“The situation is they are losing gobs of money, up to $400 billion in mortgages,” Wallison said in a Bloomberg Television interview. The Treasury Department recognized last week that losses will be more than $400 billion when it raised its limit on federal support for the two government-sponsored enterprises, he said.

20 comments:

Angry Leprechuan said...

That is not the end of it Keith. Read this if you have not already.

http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQ

There is no possible end to this debacle.

Randy said...

Ahh, Keef;

That is why we're just about to leave the 'Denial' stage in you're famous roller-coaster chart..

All this money has been able to keep house prices propped (Denial)

Not forever

Asset prices will go back down to their natural worth.

Hence = Deflation

Get ready for a fun couple of years..

Angry Leprechaun said...

Washington has no intention of ever balancing any budget or getting their spending under control. Things in this country are going to get real bad before than can ever get any better. We will most likely have a violent revolution within the next 25 years unless the new generation of video gamers just don’t really care. If that is the case we will fall a harder than the Romans.
What was the fall of the Romans? Romans got complacent and they did not labor anymore. They spent very little time working, producing, even taking care of themselves. They relied on others until they realized others would no longer there for them. Is this the fate of our country. 300 years is the cycle from start to finish of the world’s greatest empire yet. Land will be bought and sold and the shape of our country will be very different, if there is anything left.

TARPTALFHAMP said...

Why do we even talk about them as separate entities? The truth is Fannie/Freddie are now the "Bad Bank" of the United States and they will serve as the dumping ground for all of the bad paper now on the books of the TBTF banks. Bad Bank will buy this trash at par now that Timmy Geithner gave them the Christmas gift of unlimited credit.

$400B? - LOL watch what happens after the first of the year, you ain't see nothin' yet!

BTW -- a happy New Years wish of better luck and health to all the HP and S&A members far and wide.

casey s. said...

It must be nice to own a congress member like all the banks and financial companies do.Isnt massive corruption in govt what took down the romans?

Yoski said...

Despite home prices being still at historically high levels I don't think they will head lower in the forseeable future.
1. Money gets loaned into existence
2. if loans don't get serviced the system dies
3. If house prices fall further more people will be unable or unwilling to service their loan commitments.
4. US treasury (Geithner) and the FED (Bernanke) are well aware of points 1,2 & 3
5. They (FED & treasury) will throw everything and the kitchen sink at falling home prices. Increase bribes for buyers to $100K if that's what it takes! Guarantee Freddie & Fanny by unlimited back up through the taxpayer, bring back the zero down no doc loan, print money, etc.
The 2 possible outcomes are that home prices will quit falling or the entire country goes belly up. The latter is a distinct possibility given the size of the problem and the willingness of the banksters & their friend Obama to go double or nothing. As long as the Wall Street boni add up they don't care if they take the entire country down with them.
Bush was the worst president since WWII, Obama might be the last. We need to flush this turd asap.

Anonymous said...

Coming from you, It's surprising to see the anointed one's name included in this list of guilty parties.

Anonymous said...

Losses are in the Trillions!

Banana Republicrat said...

...and the meter is still running with the American public fast asleep in the back seat.

Anonymous said...

Damn they were good.

I need a drink.

Anonymous said...

You can thank Congress and the Senate for rigging FAS 157, so that banks can take on more foreclosures without having to report a lost.

Now these banks can take on more foreclosures when the Option ARM and ALT-A loans reset.

Will this allow speculators to bid up house price and create an unfair advantage to the average home buyers.

http://en.wikipedia.org/wiki/
Mark-to-market_accounting

You can also thank Uncle Benny for allowing US Dollar Carry trade to get a foot hold in 2009, thus weakening the US dollar.

Will this give hedge funds and speculators higher return on the foreign stock as Foreign Companies take advantage of the weaker US dollar to buy up US Companies and eliminate their competition in 2010.

Anonymous said...

How much did your taxes gone up by this year.

Isn't uncle Benny buying up all of the bad mortgages using fiat currency create by the US Dollar carry trade.

Isn't larger banks taking on more bad loans thanks to change in the FAS 157 ruling allowing these larger banks not to report their lost.

Isn't it business as usual, except now larger banks can buy up the smaller banks and eliminate the competition.

http://www.istockanalyst.com/
images/articles/
5min-forecast20091249253.jpg

Bukko_in_Australia said...

Can you really say it was stolen from the U.S. taxpayers? Because that shit's never going to be paid back, not in the conventional sense that an honest woman would pay back the $20 that someone loaned her.

The suckers who were really ripped off are anyone who accepted those dollars. Which includes a lot of U.S. taxslaves, but also just about everyone else who participates in the modern global economy. That means poison-baby-formula making Chicomm businessmandarins, regressive sky-spook-worshipping oil ragheads, conniving Japanese mercantilist electrogeeks, oh-so-superior European bankerwankers... They all took pieces of paper that are like the Seinfeld show -- it's ultimately about nothing.

Those dollars will get inflated away or defaulted on. I still don't know which way the "flation" game will play out -- "in" or "de" -- but the ultimate value is ZERO. It's like the "Old Maid" card game -- whoever gets stuck with the piece 'o shit piece 'o paper loses.

The only reason that the U.S. can get away with this is because all other major monetary systems are doing the same thing with their money. It's a simultaneous worldwide game of puffing up imaginary paper and pretending it has value. When it goes down, it's going down EVERYWHERE.

Got food? The new money of the 21st Century...

AmazingRuss said...

Just another western hemisphere kleptocracy in action.

Anonymous said...

look close Black on Black crime!

Can't we all just get along?

Anonymous said...

Keith, I've been reading your site for a year. I hope you stay with it. Missed your posts when you stopped for a while. I look forward to your take on everything.
Sign me... another anonymous fan

Anonymous said...

Angry Leprechuan said...

That is not the end of it Keith. Read this if you have not already.
http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQ


Best laugh: unwitting apologists crowing about how the banks have paid back TARP. Strictly speaking; ignoring all the other alphabet soup bailouts such as this...

It matters not to these rubes the complexity of the scam; they trusted and believed the government before, and now only flinch if the outrage is prefaced with "Obama's."

Randy said...

...Deflation

Get ready for a fun couple of years...


"...the first decrease in any state's minimum wage since the federal minimum was adopted in 1938..."

At some point, it will whipsaw violently into hyperinflation; there is no other way to service the immense debt. The trick will be to still have some capital to deploy just before/after.

Anonymous said...

Banana Republicrat said...

...and the meter is still running with the American public fast asleep in the back seat."


Heh; ain't that the truth. Thanx for the chuckle.

Anonymous said...

Now comes the HAMP failures to market; curious coincidence of which the $8000 credit expires just before:

"...the "first time" home buyers tax credit (and repeat credit) both require contracts to be signed by April 30th, 2010. This program's mandatory effect begins on April 1st, which means that with the ordinary process of approval and evaluation (set forth in the document linked above) that inventory will hit the market right about May 1st. That $8,000 "credit" may be the most expensive $8,000 you have ever received compared to the deal you would obtain had you waited a couple of months..."

Question: the "first lien mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac" part...how big a part of the "750,000 homes currently under trial modifications" are they?

vanilla ice said...

When do the riots start?