Fannie Mae Looking For Another Bailout And More Social Activism
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Fannie Mae is on the wrong road. After losing 2.1 billion dollars in 2007, the company has lost 58.7 billion dollars in 2008. The lender has red ink all over it’s books and an implicit guarantee by the Federal government that we the taxpayers will absorb it’s losses.
Add to that an activist administration that’s focus is on social justice, the odds of Fannie Mae to turn around anytime soon. The social policies that got Fannie Mae in this situation will now be a driving force will be implementing government policies, not being a responsible lender.
The US government-controlled Fannie Mae reported a loss of 25.2 billion dollars in the fourth quarter driven mainly by the effects of a prolonged housing slump and a global financial crisis. It had a third-quarter loss of 29.0 billion dollars.
For the full year of 2008, the company posted a loss of 58.7 billion dollars, almost 27 times higher than the 2007 loss of 2.1 billion dollars.
Fannie Mae said it submitted a request Wednesday for 15.2 billion dollars from the Treasury “in order to eliminate our net worth deficit as of December 31, 2008.”
“We expect the market conditions that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009, which is likely to cause further reductions in our net worth,” the company said in a statement. via Yahoo News
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Comment by Woodstock real estate on 2 March 2009:
What a horrible thing for these financial institutions to continue to operate freely knowing the taxpayers will pick up all of thier losses. Know that the government will probably have complete ownership over most of them by the beggining of 2010, we have officially entered the first leg of socialism. Isn’t this wonderful? Welcome to the People’s Democratic Republic of America!
Comment by Jerry W on 2 November 2009:
I would like to know :
Can the Government run anything?
Are Government programs Fraud magnets?
Isn’t the $8,000. tax credit a kick back and the same thing that got us here in the first place?
A $8,000.00 Kickback means the house is worth $8,000. less than what the buyers paid for it. Right?
Who winds up with the $8,000.00 Kick back? Is that what is used to pay the Bankers Bonuses for a scam well done?
If we sell all our asset’s to foreign countries or pay them back with it doesn’t that mean they own the country then?
Didn’t all this kind of stuff happen in the 80’s
When someone dummy’s up a loan app and gives a loan to an unqualified person isn’t that fraud ?
Why aren’t Realtor’s going to jail, they were involved.
Why aren’t mortgage people going to jail? They were involved?
Why aren’t Congressmen going to jail? They were involved and got fraudulent loans from mortgage companies. ie Countrywide.
Why aren’t Bankers & Company executives going to jail?
Why aren’t scamsters on Wall Street going to jail?
Why are we giving people a $8,000.00 subsidy to buy a granite filled $500,000. house with a swimming pool ? If a person is smart enougn and earns the money why do we have to subsidize that?
If a person is poor and can’t afford a house why do we sell that person a house? Wouldn’t it be cheaper to rent it to him and subsidize that? A loser is a loser you will never get the money back.
Why isn’t the $8,000. put on an energy efficient home that uses alternative energy sources? Aren’t we supposed to be saving and cutting back on energy consumption?
Why are we building $ 500,000. + houses if people can’t afford them?
Why are we building $40,000. vehicles?
Why are we building anything if people can’t afford them.
Why are we giving a subsidy to buy anything?
If Fannie & Freddy own all the houses and rent them out or just let the unqualified person live in them isn’t that socialism?
If the Government and the Banks ( a quasi government controlled institution) eventually foreclose on all the houses and hold them isn’t that socialism? Has anybody figured out that vacant houses do not appreciate? Has any body figured out that the real estate market does not go up all the time and very frequently goes DOWN! Just like every other free market!
Does it make any sense to hold onto an empty foreclosed house?
Don’t business’s have to be profitable to stay in business?
If the government owns the business and continues to run it and it’s not profitable isn’t that socialism?
WHY?
This Country needs to wake up to what is happening to us. Something needs to happen NOW before we lose it all. The current Government is to stupid to function but the Chinaese have a plan! And you don’t get to vote.