The Socialism of the Housing Industry

[Nbadan]

With this weeks bailout, the government has become the largest holder of mortgage backed bonds...so deregulation of the housing industry has done more for socialism that socialists could ever wish for...ironic huh?


Socialists could never have done to the market what the free marketers have. The socialization they never wanted done, they're now down on their knees begging for. "Buy us. Please buy us. Save us from ourselves".

As the news that AIG has sold 79.9% itself to the Federal government for 85 billion dollars, Scarecrow wrote to me:

Seriously, this is staggering. The US government is about topurchase and operate as a government entity the world's largest insurance company for $85 billion.

So the US now owns/operates the entities that purchases home mortgages from banks/S&Ls (and owns $5 trillion of that) and the largest entity that insures the transactions that repackages and resells those mortgages.

Firedoglake (http://firedoglake.com/2008/09/16/the-federal-government-is-now-the-worlds-largest-housing-company)

I wonder if the feds will spend even a fraction on TX hurricane recovery than they have spent this week to bailout their Washington lobbyist friends?

[2centsworth]

AIG was given a loan. Fannie Mae and Freddie Mac were always backed by the USA.

Bears is a different story, but the Fed learned and let Lehman fail.

[Nbadan]

AIG was given a loan. Fannie Mae and Freddie Mac were always backed by the USA.

...backed yes, but not held in conservatorship...big difference...until this week Fannie and Freddie were largely operated as private industries...

[2centsworth]

...backed yes, but not held in conservatorship...big difference...until this week Fannie and Freddie were largely operated as private industries...

it saved us money to do it that way, but lets see if they relinquish control. to be continued....

[Nbadan]

..it would have saved us more money just to let them fail....as it is, we're just delaying the consequences for the next administration to handle...

[spurster]

http://norris.blogs.nytimes.com/2008/09/16/socialism-21st-century-style/index.html?ref=business

Floyd Norris

September 16, 2008, 11:10 pm
Socialism, 21st Century Style

The government tonight nationalized the American International Group, the financial giant that could not find anyone else willing to lend it the billions of dollars it needed to stay afloat.

That is not the official version. Fed staffers, who briefed reporters at 9:15 tonight, don't even want us to say the government will control A.I.G. The government will name new management, and will have veto power over all important decisions. And it will have a warrant allowing it to take 79.9 percent of the stock whenever it wants. But they contend there is no control until the warrant is exercised.

[Spurminator]

September 17, 2016

NEW YORK (CNNMoney.com) -- In an unprecedented move, the Federal Reserve Board is lending as much as $185 billion to rescue crumbling fast food giant McDonalds, officials announced Tuesday evening.

The Fed authorized the Federal Reserve Bank of New York to lend McDonalds the funds. In return, the federal government will receive a 79.9% stake in the company.

Officials decided they had to act lest the nation's largest quick service restaurant file bankruptcy.

"[A] disorderly failure of McDonalds could add to already significant levels of unemployment and lead to substantially higher food costs, reduced household income and materially weaker economic performance," the Fed said in a statement.

In an effort to garner public support, the Fed also announced that McDonalds will offer its Freedom Burger (formerly Big Mac) Value Meal at only $12.99 for the next week as a gesture of good faith to American families.

[DarkReign]

^ about as fucking ridiculous.

[ggoose25]

This is utter bullshit. Liberals are the ones that are communists? Horseshit