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U.S. seizes Fannie, Freddie

GLENN SOMERVILLE AND MARK FELSENTHAL

Reuters

Latest comment posted at 5:24 PM EST 07/09/08

Regulator to manage mortgage finance giants on temporary basis in what could amount to biggest bailout in U.S. history ...Read the full article

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  1. Comments closed, censored, deleted or made to disappear from Mini Bushland, Canada writes: Ladies and gentlemen, you must admit, it is an exquisite system which privatizes profits while socializing losses, so huge, in fact, that they could bust said system: "Those losses are too great to let F&F go under." -- We, who let anybody abuse power to such a degree, fully deserve our lot. Enjoy! Enjoy!!
  2. Hendrick Larose from Canada writes: Hang onto your hats. Here comes the next wave of financial panic.
  3. Silver Standard (Used to be gold) from Canada writes: This will be extremely bad for all of US. The USD should fall to about 50 cents (it should only be 75 cents now) Canadian but of course this will not happen because the market is manipulated. Demand will drop for gas so Gas prices will still go down, this will have a drag on gold stocks but NOT the metal itself...premiums will go WAY up. Welcome to the Financial Holocaust.
  4. robert roels from Canada writes: I agree with the first two comments.

    The Chinese, Russian and many other countires have money invested in these two firms. China has lost a ton of money so have the others.

    When Fortis, Barclays and Bank of Scotland warned the world America was going to suffer a severe financial meltdown in June, little did the world realize how right they were.

    The losses by depositors or shareholders in IndyMac, 10 other failed banks, Bear Stearns, the big three and Fannie and Freddie have to be felt sooner or later.
  5. R. M. from Regina, Canada writes: I continue to be extremely perplexed at home such massive amounts are involved. Is there anyone in the United States that is NOT in default of their mortgage payments???????
  6. Vancouver rite from Vancouver, Canada writes: R.M. Apparently 8% of Americans are now behind or in default on their mortgages. This is a crazy high number when you think about it. Almost 1 in 10!
  7. Carl Hansen from Canada writes: Adios Muchachos. Don't let the door hit you where the good Lord split you.

    They will probably get 10 million each and a medal from Bush. The taxpayers will get the 200 billion dollar bill.
  8. Bilderbergers beware you've robbed your last grave from Canada writes: Alan Greenspan created this mess to offset the Dot com bubble, which he created the atmosphere for, and ALL the banks were excited and endorsed the corrupt way in which MBP is concerned.

    Bernake continued the Bull#$%t with handouts from THE FED or US taxpayer to Banks, whom the big 5 have members on the fed to continue the free credit until it finally came to blow up in their faces. Now the BANKS, who don't like government to meddle in their right to "make money" are screaming for help from the FED or US taxpayer.

    The USA currently has aroudnd $11TRILLION in debt. (approximately $350K per man woman and child) This is going to get A LOT messier...BUT the RICH will be okay:) KEEP IT ROLLIN...yahoo
  9. Dan Lowell from Vancouver, Canada writes: It's not a bailout. Under US nationalization prerogatives and laws, shareholders will lose everything. Debt holders are protected. The US taxpayer will have to pay off against the value of the assets.

    This takeover was instigated at the behest of foreign governments who wanted absolute guarantees about returns on debt. They will get those. The shareholders will get nothing.

    The US government could not renege on the foreign part of the debt as that would justify sovereign default.

    Poor headline.
  10. East Coast Living from Halifax, Canada writes: Comments closed, censored, deleted or made to disappear from Mini Bushland, Canada
    So true. The people of the US are being duped in the most obscene manner possible.
  11. Tom Araxias from Chatham, Canada writes: All Ponzi type schemes eventually come to a disasterous end. The American financial system, complete with the privatization of the country's money supply was nothing more than a well disguised Ponzi scheme. The feeding frenzy on OTC derivatives and mortgage backed securities finally broke the camel's back and exposed the scheme.

    If the FED allowed the GSE's to fail, Foreign investors (China, Russia, Japan, the Arabs) dump their US treasuries and the US dollar crushes bringing the US financial system down with it. The US slips into another great depression and all of it's nasty consequences.

    With the FED taking over the GSE's, the foreign investors are satisfied but the US tax payer picks up another enormous liability on top of their nations already runaway debt. The problem with this scenario is that although it buys time, the end result is the same. The only way the US can get out of its monsterous debt obligations is to default or hyper-inflate, which will have the same disasterous consequences on the economy.

    This is not a new cycle, this is the end of an era.
  12. Winter Mute from toronto, Canada writes: i find the periodicity of the fannie/freddie timeline to be of some interest (pardon the pun, LOL) - 30yrs after creation, fannie is spun out to non-govt shareholders, and 2yrs later freddie is created, to ostensibly compete w fannie - now, 38yrs after freddie is created, both are getting taken back into the govt fold - wonder what this augurs for the federal home loan bank system, another part of the "every american must own their home" bubble-gum/guntape/baling-wire arrangement in usa govt and banking

    only problem for canada is our proximity to this disaster

    so it goes
  13. Andrew E from Canada writes: Ironic, isn't it? the Frannie and Freddie groups existed to provide financing to people who who not have been approved for a mortgage through conventional lenders... aww, what a nice socialist concept: equality all around, with a big helping of dignity on the side. Now that they're going t!ts up, somehow this is the responsibility of the American taxpayer... gain, socialism 101, but this time, everybody gets to share the misery.
  14. Bob Cajun from from the Glorious Nation of Coboconk, Canada writes: Which makes watching the presidential elections even funnier. Republicans and Democrats keep accusing the other of having no economic quick-fix for the economy. The truth is, there is no quick fix. Trade deficit government deficit faltering confidence in the USD = No quick fix

    I just wish the current elections would feature politicians with real plans, that is, serious economic sacrifices. For one, taxes must go up, government must shrink.
  15. G. Veneta from Calgary, Canada writes: Captialism = socialism for the rich.

    Where are the libertarians now crying fowl for government interference?

    This is absolute bs! The CEO's meanwhile still take multi-million dollar salaries now picked up by the tax payer.

    Things are truly rotten where ever the right wing has a strong hold. Bail out the rich with middle class taxpayers money so they can keep their super yachts.

    Immoral.
  16. martha stewart from Canada writes: G. Veneta writes: "Where are the libertarians now crying fowl for government interference?"

    Ron Paul was silenced. But lots of people are crying fowl on threads like this.

    Meanwhile, back at the ranch, our head of the Bank of Canada is another Goldman Sachs hack like Paulson, helping to keep the US dollar higher than it sanely should be.

    Quite the gang.

    And in the wonderful world of manipulated markets, some see a major rally in US financials starting Monday on this news because, if you ignore its real costs, the story goes that it will lower mortgage costs and 'save' the housing market.

    Then everyone will live happily ever after. Honest.
  17. Alastair james Berry from Nanaimo BC, Canada writes: THE LAND OF THE FREE

    THE LAND OF FREE ENTERPRISE

    THE LAND OF THE FREE MARKET ECONOMY

    TURNING TO SOCIALISM FOR A CURE WHEN THINGS GET TOO HOT FOR THE POLITICAL MASTERS (on the run up to an election).

    Freddie Mac and Fanny Mae should be allowed to FAIL!!

    As a warning to others of what happens if management does not stick to FISCAL PROBITY!!

    I have been running from socialism for 60 of the 78 years of my life!!
  18. stephen ottridge from vancouver, Canada writes: Imagine the US more socialist than any other country.
  19. Tom Araxias from Chatham, Canada writes: The bailout will be spinned to the American public as a good news story. Already both Presidential candidates have commented positively on the FED's move. Look for Financials to rally on Monday with all the business TV talking heads spouting "the worse is over" and that the FED's move "will restore confidence in the housing market". This will especially hold true if the preferred shareholders are protected by the rescue plan since Banks/Investment houses had been allowed to show these shares as assets on their balance sheets. Oil will continue to retract until the $90 level despite the "cut production" meeting planned for next week (the Arabs have already been talked to). Commodities will continue to fall along with gold (which is NOT a commodity) retracting to around the $780 level. The deception that "all's well" wouldn't be complete without trashing gold lower with manipulative paper transactions while the CFTC looks the other way.
  20. Tom Z from Canada writes: Dear American countrymen,

    I will enjoy next week watch live F&F - The Movie, where professional hit men will spin the bailout as the epitome of American capitalism success.

    We know the American taxpayers took foreign money as trillions of debt, spent it all and had a wonderful time over the past decade. I will enjoy seeing the reactions of F&F shareholders wiped out and taxpayers pay through their noses on owning $5T of bad mortgages and dealing with the coming hyperinflation.

    I will enjoy the show while sailing my 250 ft yacht in Pacific blue waters hopping the Polynesian islands.

    Sincerely,
    Freddie, the ex-CEO of Fannie
  21. Let me tell You How It Is from United States writes: Canadians are pretty myopic to think only the US has had easy credit for the last decade. The Bank of England and the European Central Bank have had pretty much the same policy. UK housing prices are falling and Europeans from Ireland to Spain are up to their eye balls in debt. Japan has the biggest debt even worse than the US in the Western World. Canadians are just hypocritical parasites who are hanging on for the ride. Fasten your seatbelts Canadians because the low turbulent free ride is over, put your Molsons on the floor or you'll be wearing it.
  22. Blake Lyons from Yellowknife, Canada writes: 2008 version of corporate welfare bums.
  23. Silver Standard (Used to be gold) from Canada writes: Tom Araxias from Chatham, Canada writes: The bailout will be spinned to the American public as a good news story. Already both Presidential candidates have commented positively on the FED's move. Look for Financials to rally on Monday with all the business TV talking heads spouting "the worse is over" and that the FED's move "will restore confidence in the housing market". This will especially hold true if the preferred shareholders are protected by the rescue plan since Banks/Investment houses had been allowed to show these shares as assets on their balance sheets. Oil will continue to retract until the $90 level despite the "cut production" meeting planned for next week (the Arabs have already been talked to). Commodities will continue to fall along with gold (which is NOT a commodity) retracting to around the $780 level. The deception that "all's well" wouldn't be complete without trashing gold lower with manipulative paper transactions while the CFTC looks the other way.

    (((Perfect Post:) I like your other ones too:)

    This is exactly whats happening but you made it clear:)
  24. robert roels from Canada writes: Let me tell You How It Is from United States writes: Canadians are just hypocritical parasites who are hanging on for the ride. Fasten your seatbelts Canadians because the low turbulent free ride is over, put your Molsons on the floor or you'll be wearing it.
    ---------------------------------------------------------------------------------------

    You forgot one big factor.

    If it weren't for greed, sub prime, lax regulations and selling to the rest of the world this Ponzi scheme called "Securities" which countries had bought into from all over, they wouldn't be in this mess.

    The USA is at fault for this one.
  25. Still Learning at 78 from Canada writes: Let me tell You How It Is from United States

    ---I do not think you have to much to brag about.
  26. Discodynamike Torontian from Canada writes: American Capitalism = Private profits Public losses
  27. Everybodys gotone from t'rana, Canada writes: Bob Cajun wrote: I just wish the current elections would feature politicians with real plans, that is, serious economic sacrifices. For one, taxes must go up, government must shrink.

    ************

    You're being sarcastic right? You HAVE heard about Ron Paul haven't you? ...but then I guess he's not being featured is he?
  28. E B from Canada writes: The printing presses are going to be running red hot, but don't worry, it's only more Fiat (Monopoly) Money added to trillions of the same.
  29. Bob J from Canada writes: Buy when you hear the trumpets of war, sell when you hear the trumpets of victory. Rotschilds, said that, and they own JP morgan and chasse and the federal reserve. The month of september will change our lives and things will never be the same. Do some research about this family. They will get Fannie, Freddy for peanuts and they will profit after that by having more banks under their control and ultimatly the control over you. Monday will introduce us to a situation that we have never experienced, and it won't be good.
  30. Ricky for a Centrist Canada from Canada writes:
    One more F-U to the public, while the Bush administration bails out perhaps the most crooked sector of corporate America.

    Meantime, millions of foreclosures cripple the American economy.

    These are the same cons Harper and Co. admire to no end.
  31. Dr Demento from Canada writes: Vancouver rite from Vancouver, Canada writes:"Apparently 8% of Americans are now behind or in default on their mortgages. This is a crazy high number when you think about it. Almost 1 in 10!"

    Yes Americans are truly a nation of debt-to-the-eyeballs deadbeats. Unfortunately we will all have to pay for their irresponsibility . . .
  32. Mark Chynoweth from Toronto Beijing, Canada writes: If I were the American public I would demand to let F&F fail and foreclose on my mortgage; I mean keep my house! If a family fails and can't pay their mortgage, they take their house without helpful peep from the government. (Why should the government bail out every Harry Hardluck or Sally Sobstory? What is this Soviet Canuckistan? Bleeding heart reds!) So, if F&F aren't around to collect your mortgage payments - hey free house!
    Another foot in the mouth for you conservative hacks spouting off about privatisation and government waste. You can't really stomach a truly free market; your just standing in the welfare line in an Armani suit. The sub-prime lending debacle is just another example of why government controls are necessary: because you can't trust people to act in the common interest.
  33. jimmie rabbit from toronto, Canada writes: do not forget - this is all the result of neo-conservative economics, begun under reagan - all of the regulations built up in the 1930s to protect us from this were dismissed by the right-wing lunatics as "old fashioned" and "not needed any more" - now look at the mess we are in, and it is all their fault. not that they see it that way.

    well, it bloody well is.
  34. Curious George from Saskatoon, Canada writes: Mark from Toronto and Jimmy Rabbit are dead on. The stupidity of Reagan and Thatcher has almost wrecked America. Will they go down while they still have the #1 military? Will they go out with a BANG! ?
  35. Wayne Walker from Canada writes: Those posting above are right in that Fed policy errors contributed to the mess we are in now. They worries out loud about "irrational exuberance" but did nothing to check it during the tech bubble. (Clinton years). Then they had to cut rates so deeply to counteract the tech bubble collapse, just as Bush took over. in my opinion these low rates lasted too long and one effect was to inflate the real estate market as low rates made houses more affordable. When prices got too high the advocates for the lower middle class claimed that the working poor could no longer afford to buy at these inflated prices and thus needed special lending accomodation. With Freddie and Fannie ready to accomodate all of the really stupid lending practices got rolling and everyone involved gets to share in the blame...........Is the desire to help the working poor buy a home a neo-con policy???.................Today the Fed is doing what it has to do. If Freddie and Fannie close their doors mortgage availability is hit and the real estate market really collapses and millions more home owners will be under water. I do hope that the shareholders who have already lost 80% of their money get virtually nothing and that the short sighted executives responsible for the mess get what they deserve. The Fed now has to hope that maintaining the supply of mortgage money will prevent huge losses for the taxpayers and homeowners. What they are now planning is not a good thing but it is the right thing and for all of our sakes I hope it works.
  36. Jah Nee Kah Sun from Canada writes: The first comment says it all....privatized profits, and socialized losses.
  37. Oh Really from Canada writes: You guys don't understand the half of it of how socialist the U.S. financial system is. Nobody has even touched on how the government supports banks through direct lending from the FHLB system.

    I assume the new Freddie and Fannie announcements mean that the G&M will stop reporting U.S. government debt as $9.5 trillion and now add the extra $5 trillion of Feddie/Fannie obligations. The U.S. can't have it both ways -- either they are going to back that debt or not. If are telling global investors they are, then they should account for it.
  38. paul degen from Canada writes: I always thought the sub prime and even our housing boom here in Canada was a artificial ploy made up by the banks to bilk a large portion of our population of their money.

    First create a market by lending money ( that actually doesn't exist because fractional reserve lending policies ) to just about anybody. Because everyones dream is to own their own home, the demand for housing grows thus inflating home prices by double or triple or more. People buy in at low interest rates and make payments (that are real money that has been earned) to the bank. If the owners default the bank now owns a tangible asset ,even if they take a great loss that house is worth real money. If people are are able to make the 25 or 40 year payments on a house that is really worth $ 150,000 and is now artificially worth $350,000 , thats a pile of real money just on the interest alone, made from nothing ,also made from an asset thats not worth near that much.

    When the collapse happens the only ones paying for this mess will only be you and me ,the banks will still get a pile of money.

    The big banks always get their money in the end.
  39. Tough Camper from Canada writes: Capitalism = privatized profits, socialized risk.

    So many of us see this clearly, but yet Harper still looks confident in hornswoggling the Canadian public into a majority. Hmmm.

    How many people see that the Canadian cons are just like the American far right?

    With a majority, the cons would have privatized healthcare, education and public resources. I hope we're collectively able to step back and see this form of capitalism for what it is.

    Public capital (resources) should not equal private profit and socialized risk. Time for the world to wake up from this greed and avarice.
  40. An American on the Canadian Shield ... from Canada writes: Those of you who are calling for Fannie and Freddie to fail have little idea how disasterous this is for all of us - not just the share holders of the two corporations. Fannie and Freddie hold $7 trillion dollars in mortgages - half of the entire US market. Can you imagine half of all mortgages in the US being called in tomorrow? The resulting economic damage would spiral around the world - Canada included. Freddie and Fannie were created in 1938 to add a much needed liquidity to the mortgage market - and in 1968 the REpublicans under Nixon decided to privatize it. It is a particular tennent of Conservatism that calls for the free market to rule matters until it gets too bad - and then yes, they fall back on the public to bail them out. If Fannie and Freddie fail the foreign investors that fuel the world economy through investment in the US (the US is the largest investment market by leaps and bounds) would not just lose their capital, but they would lose complete confidence in the US market...and as much as you all call with glee for the collapse of the American economy I don't think that you've done the math in figuring out that when the giant falls all of the Lilleputians like Canada will get squashed! This was true in 1930 - and with globalization ruling the world economy today it is especially true today.
  41. William J Gillies from Canada writes: An American on the Canadian Shield ... from Canada writes: "Those of you who are calling for Fannie and Freddie to fail have little idea how disasterous this is for all of us"

    Collapse today in pain, or collapse tomorrow in much greater pain.
  42. Naomi Y from Canada writes: G. Veneta from Calgary, Canada writes: Captialism = socialism for the rich.

    Where are the libertarians now crying fowl for government interference?

    This is absolute bs! The CEO's meanwhile still take multi-million dollar salaries now picked up by the tax payer.

    Things are truly rotten where ever the right wing has a strong hold. Bail out the rich with middle class taxpayers money so they can keep their super yachts.
    -------------------------------
    Hey, we cried fowl really hard when they force Bear Stern to sold to JP Morgan. Rescuing Fannie and Freddie is another issue as they are sponsored by the US government. If yo think this is socialism for the rich, you should go to buy shares of the two companies and enjoy the welfare of losing all your money.

    Once a society treats owning a home as a right instead of a privilege, things are odds to go wrong.
  43. An American on the Canadian Shield ... from Canada writes: William J Gillies from Canada writes: "Collapse today in pain, or collapse tomorrow in much greater pain."

    The level of pain that you are calling for will be unprescedented...not to mention what it will do to the Canadian mortgage markets. Are you ready to pay 12-20% again for a mortgage on your house? If Fannie and Freddie collapse those kinds of interest rates are coming for all of us.
    With those two back in Federal control (and hopefully ownership) the market can stabilize and keep confidence - sorry shareholders.
  44. Gail Thomas from Canada writes: Temporary move..we'll see. Permanent move, then the marxist/socialists will have begun their ascent to power. We won't have to fight the Soviets. We'll be part of their UN one world order. Whooppee! That should make every NDP, Liberal, Green Party, Obama supporter very happy at the expense of freedom.
  45. E B from Canada writes: An American on the Canadian Shield ... from Canada writes: "when the giant falls all of the Lilleputians like Canada will get squashed!"
    A Country trying to survive by borrowing abroad and drowning in debt can hardly call itself a giant.
  46. robert roels from Canada writes: Either way there are two issues.

    The out right lies they tell people so they won't withdraw funding, and like the failed banks they do it on a weekend so investors have no recourse. That is stealing.

    Speaking of holders of common and preferred shares who were waiting for the share prices to rise, what about all those losses? Are they someone's retirement funds?

    You don't see the media following up on those who had more than 100k deposited in IndyMac, and there were roughly 10,000 poorer people out there.

    Something with this whole economic fiasco and Wall Street stinks.
  47. Lee Hiller from Winnipeg, Canada writes:
    A spoonful of pinko socialist medicine to keep alive a mortally wounded capitalist enterprise.
  48. An American on the Canadian Shield ... from Canada writes: E B from Canada writes: A Country trying to survive by borrowing abroad and drowning in debt can hardly call itself a giant.

    You just described every country in the world - except of course for those Third World countries who can't attract any foreign investment (or domestic investment for that matter). Where do you think Canada gets it's money to run our economy? Gets it's money to open up the ALberta oilsands...
  49. jimmie rabbit from toronto, Canada writes: this is all the fault of the right-wingers that we are even discussing the 30s; but harper in canada and mcain in the us seem to think they deserve re-election / election;

    if i'm digging into my pocket to bail out the financial situation the one thing i demand in return is to see their sorry a$$es the hell out the door. let harper work as a greeter at wal-mart or handing out coffees for the rest of his life at tim hortons (if they'll have him) - that's what he deserves.
  50. jimmie rabbit from toronto, Canada writes: robert roels from Canada writes: ...

    Something with this whole economic fiasco and Wall Street stinks.

    >>well hello!
  51. jimmie rabbit from toronto, Canada writes: An American on the Canadian Shield ... from Canada writes: William J Gillies from Canada writes: "Collapse today in pain, or collapse tomorrow in much greater pain."

    The level of pain that you are calling for will be unprescedented...not to mention what it will do to the Canadian mortgage markets. Are you ready to pay 12-20% again for a mortgage on your house? If Fannie and Freddie collapse those kinds of interest rates are coming for all of us.
    With those two back in Federal control (and hopefully ownership) the market can stabilize and keep confidence - sorry shareholders.

    >>if you're paying 6% on your mortgage and your house value goes down 14% then you are effectively paying 20% already, aren't you?
  52. jimmie rabbit from toronto, Canada writes: R. M. from Regina, Canada writes: I continue to be extremely perplexed at home such massive amounts are involved. Is there anyone in the United States that is NOT in default of their mortgage payments???????

    >>yes of course; those are the suckers who will wind up bailing out the rest!!!
  53. R Hopkins from Edmonton, Canada writes: As Canadians we should be worried. Hyper inflation, massive debt. How long will it be until they cast their eyes to the north?
    We have massive wealth in natural resources, they have a history of concocting excuses to invade countries.
    An easy way of correcting the balance sheet is stealing.
  54. The Skipper from Canada writes: The economy is in "recession."
    If the central bankers decide to increase interest rates then the economy will be pushed into a depression !
  55. Hendrick Larose from Canada writes: R Hopkins from Edmonton, Canada writes: As Canadians we should be worried. Hyper inflation, massive debt. How long will it be until they cast their eyes to the north?
    We have massive wealth in natural resources, they have a history of concocting excuses to invade countries.
    An easy way of correcting the balance sheet is stealing.
    ==========================================
    Hyper Inflation? Other than Zimbabwe where would that be? Now invasion fears. Take a deep breath and stop worrying about the extreme outcomes. There is plenty of reality to challenge us without delving into wild fantasy.
  56. An American on the Canadian Shield ... from Canada writes: If you have a $250,000 dollar mortgage on your house - and the value of your house falls to say $200,000 - and you have not missed any payments on your mortgage - the bank can call in your loan immediately if it wants since it lent you money based on the previous value of your house (which is now worth 20% less than when you took the loan).
    This is what is hapening in the private mortgage market in America right now. If Fannie and Freddie had collapsed completely then this would have been the trend throughout America.

    Hopefully the government will retain ownership and control of Fannie and Freddie as the once did up until 1968. Conservatives always believe that privatization is preferable to public ownership...but if you look at the oil industry in places like Norway where the public owns the oil rights and not corporations you'll understand why Norway's Oil Fund is $400 billion dollars and Alberta's is only $16 billion. Did the people of Alberta get $386 Billion dollars of benefit from those they gave that money to from their public coffers?
  57. A B from Canada writes: So much for Bush's ownership society. This take-over cannot be good. The U.S. government seems to be digging themselves in deeper and deeper. WOW!
  58. An American on the Canadian Shield ... from Canada writes: A B from Canada writes: "So much for Bush's ownership society. This take-over cannot be good. The U.S. government seems to be digging themselves in deeper and deeper. WOW!"

    ---------------------------------------------------------------------------------------

    This take over should have been announced weeks ago. The Bush administration didn't do it during the Democratic or Republican conventions because they didn't want to give fuel to Obama.
    Their stalling on this matter has only given Obama and the Democrats more fuel...
    Did anybody notice that the head of Freddie Mac is a board member of the Carlyle Group?...teh same organization that both Cheney and George Bush Sr. are also board members of? Interesting how it's all connected to the same Republicans who wrecked the economy in everyway possible - the same Republicans who are now saying only they can save the nation from the destruction they caused.
  59. robert roels from Canada writes: An American on the Canadian Shield you are right.

    Canada should take the utilities and ownership of it's natural resources as they affect us all.

    Privatization for individuals and goods and services companies are OK.

    The stuff we need for survival should be kept out of the hands of profit.

    People will are paying for fuel for heating and transportation when the high pricing is that of speculation, not supply and demand.
  60. jimmie rabbit from toronto, Canada writes: Hendrick Larose from Canada writes: R Hopkins from Edmonton, Canada writes: As Canadians we should be worried. Hyper inflation, massive debt. How long will it be until they cast their eyes to the north?
    We have massive wealth in natural resources, they have a history of concocting excuses to invade countries.
    An easy way of correcting the balance sheet is stealing.
    ==========================================
    Hyper Inflation? Other than Zimbabwe where would that be? Now invasion fears. Take a deep breath and stop worrying about the extreme outcomes. There is plenty of reality to challenge us without delving into wild fantasy.

    >>cheney was up a few months ago poking around the oil sands - what is it in u.s. history that makes you think that if they want it they won't just take it - like they've never done that before!

    oil & water are the big attractions.

    of course, if harper is elected here, there won't be any cause for military action - it can all be done quietly, behind the scenes, between "friends".

    is it possible that the reason harper wants the election now, is, to align with the US??
  61. Roger Cooper from Canada writes: Paulsen and Bernancke had no option and the move was widely anticipated. The take-over means the value of equity in the FM's is now essentially gone, but the several trillions in debt they hold is firmly back-stopped -- a good thing for mortgage holders and creditors, but not for the currency. On the bright side, a cheaper US dollar is putting new life into exports, which will turn the economic tide when the storm subsides. This will be a good foundation for the next administration to build on.
  62. William J Gillies from Canada writes: An American on the Canadian Shield ... from Canada writes: "The level of pain that you are calling for will be unprescedented...not to mention what it will do to the Canadian mortgage markets."

    I have not "called for" anything. Global corporatism, privatization and deregulation of markets, in this case, the financial markets, have been the trend since the days of Ronald Reagan and Margaret Thatcher. With the federal government stepping in as rescuer today, they'll only succeed in bankrupting the entire nation, instead of most of it. Meanwhile to top-earning 1% of society retreats to their Paraguayan estates ...
  63. David N from Toronto, Canada writes: martha stewart from Canada writes: And in the wonderful world of manipulated markets, some see a major rally in US financials starting Monday on this news because, if you ignore its real costs, the story goes that it will lower mortgage costs and 'save' the housing market.

    Truly ironic, isn't it? Someone very, very wise recently said that the US stock market is no longer an indicator of value, but rather a vehicle for rich American to express how good they'd like to feel about themselves. Makes one wonder.

    And now for the politcal angle. The federal Conservative Party is for all intents and purposes the Canadian wing of the US Republican party. They believe in the same things and use the same tactics. In the final analysis they will both do anything to help the rich avoid responsibility for the damage they cause to others in the search for faster and larger profits. We need a Conservative majority in Canada like we need a hole in the head. Remember this.
  64. Toxic Planet from Disney Land USA, Canada writes:
    another fine example of corrupt to the core american capitalism, is there anything in the USA that isnt corrupt?
  65. Kipling Hedley from Nanaimo, Canada writes: When people realize what has happened, there will be a massive spampede into precious metals. Monday would be a good time to grab as much currency as you can and buy gold and silver if you can still find a seller.
  66. His Ice Anvil from Toronto, Canada writes:

    After living the 'American Dream' for more than 60 years following the end of WWII, Americans are only now coming to the stark conclusion that their excessive lifestyles (living beyond their means in the pursuit of the 'American Dream') is unsustainable. The American economy is little more than a ponzi scheme with each American's share of the US Government's debt at $53,000 or 76 times that of the per capita US Government's debt back in 1957. It is no surprise that they've seen multiple bank failures (IndyMAC being the latest) and now mortgage guarantors like Fannie May and Freddie Mac collapsing.

    This recent failure represents a major blow to the US dollar. Watch Gold rise again on this news as millions of investors get out of the USD in favour of safe havens.

    http://mwhodges.home.att.net/nat-debt/debt-nat-a.htm
  67. Shades of Grey from Canada writes: According to an AP story ("http://www.wtopnews.com/?nid=116&sid=1444538") total compensation for the heads of the two companies was approximately 30 million. This is double what it was four years earlier. I suppose this is what you make for pumping out mortgages regardless of whether they will ever be paid back.
  68. robert roels from Canada writes: It is an on going story, bail outs. Chrysler was given loan guarantees by the government some decades ago.

    All these "capitalists" are touting the system, but the truth is it is harsh and doesn't work with rampant corruption. No system works with corruption. Fannie and Freddies books were "cooked" and who knows how deep the crisis really is.

    Hang on to what you have and damned these investment vehicles. Until they get rid of the paper no one understands, it isn't safe.
  69. Mitchell Scott from Canada writes: I always thought that when you have unlimited use of the money making machine - ala the US of A, there will be serious consequences, eventually. I'm no economist but what and when are these for our neighbors to the south, my feeling is that the US does not control its own destiny, rather China and other countries that continue to lend and lend and lend to the American actually run things in a sense. If thats true any idea when the tap will be turned off? If it is - I feel it will cause massive ripples to the those doing the lending and therefore will continue handing out the cash to the Americans. Until, they are in a position where the US 'collapse' will have minimal effect on those with their houses in order. How long that will be - no idea.

    Any thoughts on this?
  70. Susan Rogan from Canada writes: Rich investors are not allowed to lose money or go bankrupt, that would be 'bad for everybody', right? Record profits year after year by banks and investment houses are perfectly fine.
  71. Rusty Waters from Canada writes: If the American dollar takes a nose dive, its going to mean a big blow to Alberta and Newfoundland and their oil industry. This news is surely going to devalue the American dollar. Look for it to take a nosedive on Monday Morining, and the price of oil tumble below $100.
  72. Ghetto Dude from Istanbul, Turkey writes: Triple A is a joke. Those so-called credit rating charlatans which actually are one of the hundreds of corporate market manipulators of the US, assign AAminus to the government of Japan and these two mortgage clowns were assigned AAA by them, until 4-5 days ago. Russian Federation with a huge trade surplus and an ample amount of cash has a BBBplus rating whereas Citibank NA with a huge deficit is assigned an AAminus. GM or Ford with their bonds trading at 50% of the original issue prices now, were within the investment category until 2005. Province of Quebec's rating is AAminus: a rating equal to that of many unknown tiny US local banks. Australia, Belgium, Italy, Hong Kong, New Zealand are just a few examples that cannot get AAAs from these boys.
    The US government robbed the entire planet but the people will pay for it: foreign buyers for their homes at a fraction of the original price will mushroom soon. Check the real estate prices in Detroit.
  73. A Real Conservative from Hamilton, Canada writes: Let me tell You How It Is from United States writes: Canadians are pretty myopic to think only the US has had easy credit for the last decade....... Canadians are just hypocritical parasites .... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Calling Canadians hypocritical parasites is quite unwarranted and not helpful to a long term relationship that has withstood a lot of ups and downs. However, I will try to sift the wheat from the chaff here (and there is a lot of chaff)... in that the world has had a party on the US debt. Everyone was willing to loan the US money so that the US would buy their products! Everything from consumer goods (China & India) to Oil (Middle East). Canada has benefited from the party by being next door and being able to sell lots of products to the US. Now the US is effectively bankrupt. The party is over and the lights are being shut off. The sheriff would be at the door to collect the property except that the owner has a bigger enforcer. And enforcing bankruptcy will only cause the banks in China, India and all over the world to fail. To a degree we all have benefited from the US party... the world economy would not have been as good as it was over the past 8 years... however, in the longer term, it may not look like it was such a good decision to have had the party. Now, all the countries have to work together to figure a way out... if there is one. There are lots of conspiracy theories out there... check you zeitgeistmove.com for a 2 hour movie on one opinion. As for bailing out Freddie and Fannie will buy time, but the leadership MUST start to reign in the policies that have let the situation get out of hand.
  74. Sweeney Todd from Oilberta, Canada writes: Rusty Waters from Canada writes: If the American dollar takes a nose dive, its going to mean a big blow to Alberta and Newfoundland and their oil industry. This news is surely going to devalue the American dollar. Look for it to take a nosedive on Monday Morining, and the price of oil tumble below $100.

    =========================================

    It works the other way. A falling US dollar drives the price of oil UP. That's what's been happening for the last while - the US dollar has been dropping, forcing the price of oil up, relative to it.

    For manufactured goods, however, the US dollar falling relative to ours, makes our exported cars & auto parts more expensive south of the border.
  75. Rusty Brown from Cobourg, Ontario, Canada writes:
    The price of gold will soar, and the value of the U.S. dollar will plunge, will they? We will find out for sure in the week ahead, no doubt.

    So, if that's the case, who do we thank in government for selling Canada's gold reserves down to near zero and loading up on the U.S. dollar?

    RB
  76. robert roels from Canada writes: It all isn't going to matter much in the long run what or who affects things.

    This big old economic wheel is slowing down and there isn't enough positive inertia to overcome this thing.

    The day will end when a blue collar worker in the US and Canada will be able to afford a home and two cars, because there are not too many places that is possible.

    In Mexico and other countries, professionals like doctors and engineers have trouble making the salaries that many laborers and semi skilled people make here.

    In this "Global" economy, that fact has to foster resentment. Never mind these hard earned dollars in places like China and Russia are being invested in Fannie and Freddie so the American Dream can be realized. A dream that many in those countries can never hope to achieve.

    If I were China I would get my money back for my peoples' sake, but that won't happen as they know that they are damned if they do and damned if they don't.
  77. E B from Canada writes: "Rating agency Standard & Poor's affirmed its sterling AAA rating on both Fannie Freddie on the news, adding that its outlook for the two firms is stable."
    Oh, what a wonderful world!

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