We have a total hyper-inflation crash falling into place and these types of retards in charge, who are in denial, are going to fuel the speed at which we crash. We are on a train track frozen by headlights and these people are blind and deaf. Are they taking payoffs, part of some mafia, what the hell is going on?? We will be in a non-stoppable crash if we do not have some accountable authority take charge immediately! We know that person is not Bush, or anyone in this coup.

So who or what will save us??

The current global financial system is based on The Enron Model and the end results of that models outcome have already played out, and thus its just a matter of time for the global economy to fail:

Indeed, Enron's unscrupulous actions were often gambles to keep the deception going and so push up the stock price, which was posted daily in the company elevator. An advancing number meant a continued infusion of investor capital on which debt-ridden Enron in large part subsisted. Its fall would collapse the house of cards. Under pressure to maintain the illusion, Skilling verbally attacked Wall Street Analyst Richard Grubman[3], who questioned Enron's unusual accounting practice during a recorded conference call. When Grubman complained that Enron was the only company that could not release a balance sheet along with its earnings statements, Skilling replied "Well, thank you very much, we appreciate that . . . asshole." Though the comment was met with dismay and astonishment by press and public, it became an inside joke among many Enron employees, mocking Grubman for his perceived meddling rather than Skilling's lack of tact.

This blows my mind, we are going to watch the commodities market become a casino that will fuel hyperinflation and transform speculations in virtual market derivatives into realistic applied cost increases in things like food, oil, metals and the little things that impact life. As I recall you can now buy futures in water, so why not just start a war where we start killing off the poor and then fight to control food and water?? If we dont control speculation in commodities and shut these markets down within weeks, there will be chaos!

There may not a bailout of the GSEs. The GSEs can go bankrupt and stiff all the bond holders just like any other company. The government does not back the loans.

I'm not saying the government won't make the loans whole, but they may decide it's too expensive. Better to start a new agency from scratch with no debt.

Evans who heads one of the reserve banks said that the Fed would jack up interest rates fast if need be to stem inflation. So what if the economy is still tanking while inflation is rising? Jack up interest rates in the face of a tanking economy? These guys don't seem to understand the mess they are in.

Bill Gross of Pimco sure seems to believe that Fannie and Freddie are too big to fail, because his bond funds are stuffed with mortgage-backed securities from them.

It may be worth noting that GSE agency debt is widely used by foreign central banks to recycle CA surpluses (eg. China). If a GSE bailout became the subject of serious debate, I have to think the ownership of debt being backstopped would become an issue.

Legally not backed by government does not mean that you could throw it out regardless. Today time you let GSE going down. Tomorrow you will find market would accept fully government backed debt only.

Regarding Bush, he once said "mission accomplished." He was saying he believed in "strong dollar"...

Yes, the GSE's are too big to fail, which is why, in essence, the nationalization of the mortgage industry is almost complete.

OFHEO recently lifted the debt caps on the GSE's--and they already owe about $1.5 trillion.

OFHEO also recently lowered the capital requirement, since they were both able to report on time this past quarter. Their reports were of astounding losses ($3.56 for Fannie and $2.45 for Freddie), but nevermind, at least they sorta know how much they lost.

The FHLB is lending money like it prints it. Which, of course, it sorta does--because it too, is too big to fail. Think government-backed SIV and you've about got what the FHLB is up to.

And of course, Fannie has come out w/ its Advantage program that it can only undertake because it is too big to fail. It knows it can jigger around w/ mortgages it is guaranteeing, because ultimately the fed will make its guarantee good, perhaps w/ worthless dollars, but no matter. The little program literally screams moral hazard, but so too did all those years of implicit government backing that yielded those oh, so competitive interest rates.

Folks, say what you wish, the entire residential housing finance industry is effectively nationalized, because--it is too big to fail.

Whether a good thing or bad, it is the reality.

I don't see this idea getting any attention...

Not only should the equity and bond holders be wiped out as a result of the nationalization of the GSEs, but I also think we ought to consider making the solvent "jingle mailers" liable as well. Those miscreants who are solvent bankruptcy, but opportunistically exit their liability ought to pay a greater share of the burden than Joe Q. Taxpayer.

First, firms in trouble ought not to be bailed out, unless the bailout takes a form that imposes heavy costs on managers and shareholders

this cause's the most problems in a Capatilistic Society, right?

the shareholder gets to vote every day of the week that the market is open, to dispose of his shares if he views that management is not up to the task of providing reasonable return on invested capital.
Why is it that the major holder's of the GSE's, who happen to be the largest insititutions, (fido,cap re, calper,etc...) don't dispose of there economic interest in said firms by actually doing their due diligence.