Here's the latest on the upcoming taxpayer bailout of Freddie and Fannie

Meanwhile word on the street is that Bennie and the InkJets are gonna let Fannie and Freddie borrow directly from the Fed.

Ho.

Ly.

Crap.

Folks, you're looking at the China Syndrome of finance. A meltdown like the world has never seen. We're not talking millions anymore. We're not talking billions.

We're talking trillions. Trillions and trillions.

Where it stops, nobody knows.

Get some popcorn.

HousingPANIC Stupid Question of the Day

How has the Great Housing Crash affected you?


(Here's how it's affecting your fellow Americans)

Study: Mortgage meltdown will cause massive losses in household wealth

Due to the collapse of the housing bubble, the vast majority of Americans have accumulated little or no wealth and will be almost completely reliant on Social Security and Medicare to support them in their retirement years, according to a new study by the Center for Economic and Policy Research.

HousingPANIC Laughable Quote of the Day By a Bush Administration Official

"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission"

- Hank Paulson, Goldman Sachs CEO (oops, I mean US Treasury Secretary), July 2008



Bonus:

Is Hank Paulson stupid, or is he just lying because that's what he has to do otherwise the sh*t would hit the fan even faster?

And then they lost control

Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.

FLASH: FEDERAL RESERVE'S POOLE ADMITS FANNIE MAE AND FREDDIE MAC ARE INSOLVENT, MASSIVE TAXPAYER FINANCED BAILOUT LIKELY

Ho.

Ly.

Crap.

We saw it coming HP'ers, but then to see it come, that's another thing...

The US Taxpayer will in the end pick up the tab for the rampant mortgage fraud and housing speculation. Your income will be taken by the government to pay for the misdeeds of Angelo Mozilo, David Lereah, Michael Perry and Casey Serin. Your hard earned income will go toward bailing out failed housing gamblers and incompetent banks.

And that should piss you off something fierce.

Here's former Fed governor Poole, telling it like it is...

Fannie, Freddie insolvent, Poole tells Bloomberg

(Reuters) - Mortgage lenders Fannie Mae and Freddie Mac are "insolvent" and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.

"Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer," Poole was quoted as saying in an interview held on Wednesday.

Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying.

What lessons can kids learn from the Great Housing Bubble and Crash?

Here's a few for starters. And check out this sad article in the USAToday on Foreclosure Kids - "'Mom, why did you get us into this situation?"

1) Never, EVER, trust a realtor, mortgage broker or anyone on commission EVER again

2) Educate yourselves in regards to personal finance, investing, debt and basic economics

3) Live within your means - do not think that you can live a MTV Cribs lifestyle working at Taco Bell

4) Only buy a home if you can rent it out for close to break-even

5) Don't jeopardize your financial safety or that of your family in order to keep up appearances with your friends and neighbors

6) If you see everyone doing one thing, do the opposite

7) Put at least 10% of your income into liquid savings

8) Read the fine print twice before you sign any contract

9) Don't believe what you read in the paper or see on TV is true

10) One more time - NEVER EVER TRUST A REALTOR