The mortgage market is now so reliant on funds from government-related entities that it has been "effectively nationalized," says Richard Iley, an economist at BNP Paribas.
These institutions have kept the credit spigots open for home mortgages, but "potentially there are very large liabilities for the taxpayer," Mr. Iley says.
February 24, 2008
Things that make you go "hmmmm...."
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Just as the Brits are finding out, they took on Northern Rocks debt, but the collateral (the mortgages) is worth just pennies on the pound. The taxpayes will get to fund the difference.
Personally I'm cheating on my taxes and being proud of it. The whole rotten system can't break down fast enough as far as I'm concerned.
This is my greatest fear...Having to beg the gov. for a house for my family to live in and a bite to eat and maybey a little bit of MY MONEY that I WORKED for.
Fannie,Freddie,VA,FHA = almost ALL mortgage loans!
and right at the peak before major crash. of course it makes sense.
if we pull out of iraq, we can maybe afford to bailout fannie. maybe...
BTW foreclosures in January in CA now EXCEED # of sales (in jan) ! never happend before! and its getting worse. OMG meelllltttdowwwwnnnnn
WHat is going to happen to the US if the northern rock situation happens to WAMU, BOfA, Wells at the same time? What are people going to do? Will there be riots? WHat about the empty houses all over the us? It sounds like the only way is to keep this house propped up. I sounds like it too much to let the market work itself out now. DOn't get me wrong I can't wait for prices to fall but maybe this is too much at once!
RIch in FL
WHat is the college loan money thing all about? Does this mean there is NO $$$ for students?
"Personally I'm cheating on my taxes and being proud of it. The whole rotten system can't break down fast enough as far as I'm concerned."
Agreed, why should the tax payer have to pay for big salaries, health care insurance and retirement for government officials, when we our selves have neither. Government doesn't represent US citizens/workers anyhow, maybe China, India and Mexico can pay their benefits.
"These institutions have kept the credit spigots open for home mortgages, but "potentially there are very large liabilities for the taxpayer," Mr. Iley says."
The government will always side with the banking/financial institutions, and we taxpayers will always be left to foot the bill for banking greed.
But, not only are we screwed as taxpayers, but we are also screwed as bank-account holders. Not only will these banks get their money from the government, they will rob their account holders by raising fees for checking or savings account "services", lowering CD interest rates, increasing interest rates on credit cards, charging new "fees for services" for your new home loan or existing mortgage and any other slimey, back-handed trick - all with the government's approval.
Yeah, we're screwed.
I'm on social services so i don't pay taxes - so go ahead government, you suckers that work pay for my health care too - suckers - back to my porn surfing.
keith-
Thought you would be interested in the article on cnbc I found this morning from Bill Gross
http://www.cnbc.com/id/23294945
Every bonus that every bank and wall street house earned in the last 8 years should be paid back with interest before any type of federal action in started...
Marky Mark
This is what realists (a.k.a. Keynesian socialists) have been saying for a long long time; capitalism works!
until it doesn't.
Then the government steps in and everybody is worse off still. That is why we need a steady, realistic Welfare State that will have more or less constant agreeable rules (i.e. the 90s).
Yes you pay taxes; but that is the price of doing business in America as opposed to say Zimbabwe.
Remember Keynes et. al. wrote their advice retrospectively, after the disaster of capitalism. It wasn't conjecture! It was journalism.
We are just now entering The Disaster with the specter of civilization ending war upon us (again). It is no coincidence that the reigning philosophy in the run-up to The Disaster was parasitic capitalism!
History is repeating itself.
OH, KEITH, KEITH, KEITH. That whole GSE nationalization of mortgage debt was so 2007. Nationalization of the entire bond market is 2008! You are so behind the trend! US Government is going to guarantee every bond in every pension fund. Every muni bond issued. And of course, we have to start looking at OTC derivatives soon too. THAT will be the big story in 2009.
-Matt C
Master of the obvious.
Thanks FDR for creating the twin Frankensteins Fannaie Mae and Freddie Mac to "help" the American homedebtors. The only ones really being helped are the bankers
> WHat is the college loan money thing all about? Does this mean there is NO $$$ for students?
The credit bubble affected a lot more than housing. Think about the big purchases that people leverage with debt:
-housing
-cars
-diplomas
And how, on all of those, the prices have skyrocketed due to both the willingness of irrational buyers and the availability of credit.
In the case of diploma financing, there is a GSE, Sallie Mae, that in addition to a bunch of banks made a huge amount of new money available for buying a degree from the degree cartel. It's like 1999 was for tech companies- huge new buildings- Aeron chairs- unlimited buyers willing to pay any tuition increase- Ward Churchills everywhere getting tenure- football statiums- failed ERP conversions with hundreds of useless consultants- climbing walls....
In the last couple of months, the banks have started to announce the end of easy debt for diplomas. Once people start to realize that the relationship between making a lot of money and a degree is correlation and not causation (and no, they don't teach that in college any more), some schools are going to be in a bad position.
While capitalism has periodic disasters, socialism is an ongoing disaster
The government wants those that get higher education to be debt slaves for the rest of their lives.
Interest on student loans is ONLY deductible UP TO $2500 in interest expense per year. At 8.5% interest that is $29,500 in debt. Not much of a problem for undergraduate degrees, but graduate degree? that might be one year!
AND IN ADDITION, once you start making $60K a year, your interest deduction (max of $2500) is taken away, cause you make so much money and are obviously rich.
Why is 100% of mortgage income deductible, but education expense deduction is a joke?
I know lots of people that have come through graduate school and now have $50-$150k in student loans....
Word needs to get out that higher education can make your life VERY DIFFICULT, and the rip off that student loans are.
What another dumb topic.
Who cares if people run up massive credit card debt and cause another financial crisis?
How boring......
How divisive.....
This will make Obama's life easier, having one less industry to nationalize in his new Union of Soviet American Republics.
Dubya Shrub + Penis Shooter = "Little Boy" + "Fat Man"
This nation and its Americano citizen is as toasted as a snapper turtle skewered on a Chinese bamboo stick from mouth to ass all sizzling, sputtering, roasting nicely, juices dripping, fat popping over a bed of white hot charcoal grill.
Americano = Grilled Snapper Turtle
Heeeee... Haaaaa... Arrrrr...
So, tell me, does the average Americano take it enough in the rear orifice yet by the forceful penetration of "Little Boy" + "Fat Man", or do you want more "Enter The Dragon" ?
Americano = Being Entered By The Dragon up the Kazook
Heeeee... Haaaaa... Arrrrr...
And all of you retards, ass-head that voted for SHRUB and worshipped his ASS over the last 8 years, guess what, the chicken are coming home to roost on your head-ass. The ancient snapper turtle probably have more brain cell than you and your children combined together. Are you sorry yet ? Do you feel ashamed and stupid about your shallow thinking, narrow-minded love and swoon for DUBYA ? Do you, do you, do you ???
Interest on student loans is ONLY deductible UP TO $2500 in interest expense per year. At 8.5% interest that is $29,500 in debt. Not much of a problem for undergraduate degrees, but graduate degree? that might be one year!
That's why I'm paying for my own Grad degree along with my employer of course. After I'm done, I'm leaving the country to work in Asia. The US will be overrun with tens of millions of Mestizos and the cities will be like Tijuana and Mexico City. There's a reason Mexico is a shithole, and that reason is moving en el Norte.
The univ. hoax. Obsolete model.
Both Obamas pay of their college loans to join the ranks of the lying lawyers (hemorrhaging this country's econ.) yet twenty years later?
Meanwhile, they finagled a million dollar house for themselves.
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