Gaar,

Please clarify what "the masses" have to do with this administration's
decision to bail out Freddie Mae amd Fannie.

On Sep 8, 4:34 pm, Gaar <[EMAIL PROTECTED]> wrote:
> Who said things were going well?
>
> Looks like the masses are afraid that Obama will become President and
> raise their Taxes.
>
> On Sep 8, 2:29 pm, VT Sean Lewis <[EMAIL PROTECTED]> wrote:
>
>
>
> > Republicans and McCain if things are going so well,
> > why the $5 Trillion Freddie Mac and Fannie Mae Bailout?
>
> > The tax cuts should have gone to the middle class,
> > not the richest Americans. It is very clear that trickle down
> > did not work.
>
> > It is very clear it is the American middle class who need the
> > help.
>
> > It is very clear that after 6 years of the Bush Tax cuts the
> > 11 Million jobs and the prosperity Bush Promised these tax
> > cuts would bring never happened.
>
> > The bottom line is that the Americans who will have to PAY
> > for this bailout will be the MIDDLE CLASS, because the
> > Republicans want to make the Tax Cuts to the Rich Permanent.
>
> > Is this the change McCain talks about, because he supports
> > the Bush Tax cuts.
>
> > Fannie, Freddie deal helps some borrowers, not all By J.W.
> > ELPHINSTONE, AP Business Writer
> > Mon Sep 8, 1:27 PM ET
>
> > The government's historic bailout of Fannie Mae and Freddie Mac on
> > Sunday will be good news to homebuyers and some homeowners hoping to
> > refinance if it leads to lower mortgage rates, as experts expect.
>
> > But for homeowners already behind on their mortgage payments, or who
> > owe more than their homes are now worth, the plan unveiled Sunday by
> > Treasury Secretary Henry Paulson offers little in the way of extra
> > relief.
>
> > "The bailout will give the mortgage industry a stability that we
> > haven't had in a couple of years," said Rich Cosner, president of
> > Prudential California Realty. "But frankly no, it won't help
> > (struggling borrowers) to refinance."
>
> > Fannie Mae and Freddie Mac play a critical and increasingly dominant
> > role in the mortgage market. The companies buy mortgage loans from
> > banks and package those loans into securities that they either hold or
> > sell to U.S. and foreign investors. That allows traditional lenders
> > like Bank of America, Wells Fargo and Washington Mutual to make more
> > loans.
>
> > Together, Fannie and Freddie own or guarantee about $5 trillion in
> > home loans, about half the nation's total. But an alarming number of
> > those loans started going into default, draining the companies'
> > financial reserves and sending a chill through credit markets
> > worldwide. As investors grew more skittish, borrowing costs started
> > rising.
>
> > By placing Fannie and Freddie into a conservatorship, the government
> > is promising investors that the companies' debt is as safe as the
> > Treasury Department's.
>
> > While not a cure-all, the bailout is still a step in the right
> > direction, industry observers say. It will at least "keep the lanes in
> > the mortgage freeway open," said Greg McBride, a senior financial
> > analyst at Bankrate.com, possibly putting the market on the road to
> > recovery.
>
> > If mortgage rates fall, that will attract more potential buyers into
> > the market, which, in turn, will help to prop up home prices, he said.- 
> > Hide quoted text -
>
> - Show quoted text -
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