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Freddie Mac and Fannie Mae "Nationalized"

posted by Geordie Geography: USA Topics: economics, corruption, Capitalism, sub-prime

September 7, 2008

Freddie Mac and Fannie Mae "Nationalized"

Over $5 trillion in troubled mortgages have been taken over (read: nationalized) by the US government. Freddie Mac and Fannie Mae (the two largest mortgage providers in the US) have been put into "conservatorship" in order to stop them from collapsing.

This is the biggest government bailout in US history and comes on the heels of Royal Bank chief executive Gordon Nixon saying that the global financial system has been "pushed to the brink".


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Freddie Mac has created the

Freddie Mac has created the biggest controversy in mortgage industry as it holds the biggest government bailout in the US history. Freddie Mac also plays a big role in Obama’s recently revealed foreclosure prevention plan. And now Freddie Mac is back. Freddie Mac, the mortgage giant, is looking for more bailout cash to assist in their loan modification program, where troubled homeowners can restructure their mortgage so they don’t have to be foreclosed on. Both Freddie and Fannie Mae have both lost gargantuan amounts of money. Freddie is seeking an additional $30 billion plus, this coming off the heels of the taxpayers purchasing about 80% ownership in the company. In spite of this heavy investment, the company has still managed to lose about $20 billion in the last three months. So once again, the taxpayers may have to pick up the slack for Freddie Mac.

Nationalization

I agree that the US public will end up paying a substantial amount of money for the bailout of bad decisions by execs in Fannie Mae and Freddie Mac.

The US government's response to the near collapse of the mortgage giants has been to "nationalize" the companies or put them into "conservatorship" as the government is calling it. However that most certainly does not mean the US government will use Fannie Mae and Freddie Mac to make decisions that benefit the public.

How can you call this

How can you call this nationalization when all it does is pass the cost to the American Taxpayer!

Give us a break!

This is an example of how privatization of government agencies ripped of the public!!! Then dumped the problem right back on the American People.

Jason in Fort Lauderdale

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