HOLLYWOOD
Member
- Joined
- Nov 29, 2007
- Messages
- 22,314
The Numbers are in:
As long as more homeowners default on mortgages, losses to financial institutions will mount. Those Losses already exceed $400 billion, and some analysts believe they will top $1 trillion before the housing carnage is over.
By comparison, Congress has authorized $650 billion so far to fight the Iraq war alone.
The Bush administration and the Federal Reserve announced an emergency rescue plan Sunday to bolster Fannie Mae and Freddie Mac, which hold or guarantee more than $5 trillion in mortgages -- almost half of the nation's total.
The plan would temporarily increase a long-standing Treasury line of credit that could be provided to either company. Treasury also said it would, if necessary, buy stock in the companies to make sure they have enough money to operate. <=== Love This MOVE!
The Fed also announced it would allow Fannie and Freddie to get loans directly from the Fed -- a privilege previously granted only to commercial banks until this March, when the Fed extended the borrowing to investment banks to deal with the collapse of Bear Stearns.
As long as more homeowners default on mortgages, losses to financial institutions will mount. Those Losses already exceed $400 billion, and some analysts believe they will top $1 trillion before the housing carnage is over.
By comparison, Congress has authorized $650 billion so far to fight the Iraq war alone.
The Bush administration and the Federal Reserve announced an emergency rescue plan Sunday to bolster Fannie Mae and Freddie Mac, which hold or guarantee more than $5 trillion in mortgages -- almost half of the nation's total.
The plan would temporarily increase a long-standing Treasury line of credit that could be provided to either company. Treasury also said it would, if necessary, buy stock in the companies to make sure they have enough money to operate. <=== Love This MOVE!
The Fed also announced it would allow Fannie and Freddie to get loans directly from the Fed -- a privilege previously granted only to commercial banks until this March, when the Fed extended the borrowing to investment banks to deal with the collapse of Bear Stearns.
