FNM

[FinanceDude]

FD... well, in a word YES....

They are backing the debt that is backed by mortgages... not the shareholders of the company... so both Fannie and Freddie could indeed go bankrupt and all the negatives that attach to that... but the FNMA bond are 'good'...

And the beat goes on............

 

[Art G]

Hey, imagine if the government decided to renege on their promise with the loans! The decision blows, but what else are they to do?

 

[Hal3]

What is the price of oil in Euro?

Well, all you have to "read" is the chart which tracks the U.S. dollar.

Ben has a red phone to the bureau of printing and engraving.

No problem.

 

[al_bundy]

Calculated Risk: The Times: Treasury rescue for Fannie and Freddie

 

[Hal3]

How about a "discount window" for mortgage holders?

"The capital injection would also see both lenders granted permission to use the Federal Reserve’s discount window."

Everyone on mainstreet knows that the wrong side of these mortgage transactions is getting the bailout.

Bernanke's response: "Let them eat cake."

 

[al_bundy]

why should the "homeowners" be the ones bailed out?

 

[CitricAcid]

Brewer put it best I feel... if they give access to capital to the brokerages, why would they not do it for the GSEs? Yes, it was always implied and not explicit but it never was logistically tested, until recently.