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Another Government-Bank Bailout Conspiracy

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11

February 23, 2008 – Comments (8) | RELATED TICKERS: CFC , BAC , FNMA

The jerks from Bank of America have another plan to try and fleece taxpayers in order to bail itself out of its own, stupid decisions. Make the us taxpayers directly buy the crummy loans that no one else wants.

(We're already doing this, of course, more indirectly, via taxpayer-backed shenanigans for Freddie and Fannie, as well as that Fed "borrowing" window that lets banks put junk assets up as collateral -- and we know they'll fail, sticking us with that toxic crud.)

If this more direct Welfare for the Rich, Risky, and Stupid happens, how long until the silent majority of responsible Americans grabs for the torch and pitchfork?

Hat tip to Housing Panic.

8 Comments – Post Your Own

#1) On February 23, 2008 at 5:05 PM, abitare (49.76) wrote:

srs, skf, gld, udn....

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#2) On February 23, 2008 at 5:41 PM, dwot (45.74) wrote:

Looks like a good plan to me...

I saw this one on CR and did a blog on it as well

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#3) On February 23, 2008 at 10:59 PM, litost (47.78) wrote:

Government was bailing out the whole home loan industry during 2007. FHLB, if you know this name, is a GSE holding asset&debt about 1 trillion, of the same scale as citibank. The difference from fnm&fre is that FHLB is non-public i.e you don't get as transparent information as those of fre&fnm. At least 200B of new loan was lent to the subprime lenders in the first 3 quarters of 2007, including 50B to countrywide. They accept collaterals, which are subprime mortgage securities, as we all know, are no more than garbage now.   

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#4) On February 23, 2008 at 11:03 PM, TMFBent (99.80) wrote:

Opp ya, forgot about that bailout too. Well, what's another few hundred billion in order to keep irresponsible, greedy Wall-Street uber-rich from having to pay for their idiocy?

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#5) On February 23, 2008 at 11:05 PM, litost (47.78) wrote:

Government was bailing out the whole home loan industry during 2007. FHLB, if you know this name, is a GSE holding asset&debt about 1 trillion, of the same scale as citibank. The difference from fnm&fre is that FHLB is non-public i.e you don't get as transparent information as those of fre&fnm. At least 200B of new loan was lent to the subprime lenders in the first 3 quarters of 2007, including 50B to countrywide. They accept collaterals, which are subprime mortgage securities, as we all know, are no more than garbage now.   

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#6) On February 24, 2008 at 12:34 AM, Tastylunch (29.40) wrote:

It's funny, the rich never want the gov't around until they worry that they will become poor. Ah preemptive welfare:-) 

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#7) On February 24, 2008 at 2:54 AM, QualityPicks (22.57) wrote:

There is a new bailout proposal every day. It is sickening. And all the plans are spinned about "helping homeowners". Funny how it is all the financial institutions that want to "save the homeowners". I have yet to see a big group or association of homeowners push any plan for keeping their overvalued house. Sure, they cry about being ripped off by the lenders, but they want out of the bad deal, that is, they want out of their nightmare that is their house :) Hopefully these troubled individuals will just walk away, it is their best "bailout for homeowners" there is.

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#8) On February 25, 2008 at 8:49 PM, TMFBent (99.80) wrote:

Yeah, it really is amazing how "helping homeowners" only became the battle cry once the banks realized that homeowners were going to help themselves by sticking them with the lousy, overpriced homes and walk away to rent. Suddenly, then it was "won't someone please think of the children."

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