Peter Schiff sees socialization of United States bubble economy will sink the Federal Reserve Note. US mortgage giants Fannie Mae and Freddie Mac are facing growing pressure as fears intensify about a potential calamity at the firms, which underpin trillions of dollars in home loans. Together they own or guarantee some US$5.2 trillion in loans, or about 40 per cent of the total value of home loans in the United States. Peter Schiff at Euro Pacific Capital said the two giants were likely to need government bailouts in view of the “dubious quality of their mortgage portfolios”. “Together both firms have less than US$90 billion in capital reserves to ensure losses on more than US$5 trillion in mortgage debt … Clearly, Fannie and Freddie would have no ability to survive without a government bailout. This means that taxpayers will be on the hook for hundreds of billions of losses, perhaps even more than one trillion.”
Erica
August 27, 2010
September 1, 2009
Should the government get in the mortgage business, like it is in the student loan business?
SmooveB asked:
Because that is in effect, what might be the end result of this bailout. Why couldn’t the government just make (foreclosure-proof) home loans to everyone, regardless of whether they can repay them? This should appeal to liberals; after all, the greedy rich CEO’s who caused the financial crisis would be taken out of the equation.
QUINCY
Because that is in effect, what might be the end result of this bailout. Why couldn’t the government just make (foreclosure-proof) home loans to everyone, regardless of whether they can repay them? This should appeal to liberals; after all, the greedy rich CEO’s who caused the financial crisis would be taken out of the equation.
QUINCY
March 5, 2009
Are you ready to CHANGE to a new, restructured mortgage loan?
NYC Sewers asked:
Why sit on an upside-down mortgage when I have approved a bail-out plan for homeowners?
my impression is that this homeowner bailout is only more welfare and affirmative action. most people who are paying their monthly mortgage hate this bailout. i don’t know. people confuse chimpanzees and that is why we attack them every chance we get. yieek! yieeeeeeeeeek! bite, twist and tear, someday they will go away!
ARON
Why sit on an upside-down mortgage when I have approved a bail-out plan for homeowners?
my impression is that this homeowner bailout is only more welfare and affirmative action. most people who are paying their monthly mortgage hate this bailout. i don’t know. people confuse chimpanzees and that is why we attack them every chance we get. yieek! yieeeeeeeeeek! bite, twist and tear, someday they will go away!
ARON