Truthdig - Ear to the Ground - Markets Respond to Fannie, Freddie Takeover

			November 9, 2009 Log in / Register
			Text Size

Kucinich: Why I Voted No

Afghanistan's Sham Army

When Voters Disrupt the Tea Party

Rupert Murdoch vs. Google (and Reality)

'Daily Show' Insta-Classic: What Lurks Within Glenn Beck?

Afghanistan’s Sham Army
By Chris Hedges

When Voters Disrupt the Tea Party
By E.J. Dionne

Kucinich: Why I Voted No
By Rep. Dennis Kucinich

America Performs Its Familiar Role of Propping Up a Dictator
By Robert Fisk

Rupert Murdoch vs. Google (and Reality)

Salvador Flood Toll Tops 120

Hezbollah, Fearing War, Digs In

Okinawans Step Up U.S. Base Protest

House Passes Health Care Bill

Massive Malaria Vaccine Trial Begins

Goldman Sachs Becomes ‘SNL’ Punchline

‘Daily Show’ Insta-Classic: What Lurks Within Glenn Beck?

‘Left, Right & Center’: GOP Scores; Unemployment Up; Fort Hood Fallout

Obama to Tribal Nations: ‘You Will Not Be Forgotten’

Marion Barry Does Reality TV

Steve Fraser on the Crisis of Capitalism
By Steve Fraser

Ni Hao, Mickey Mouse: Disney Goes to Shanghai

Anthropologist Claude Levi-Strauss, Father of Structuralism, Dies at 100

Financial Meltdown 101

A Dig compiled by the editors of Truthdig

Vetting Sarah Palin

A Dig compiled by the editors of Truthdig

Markets Respond to Fannie, Freddie Takeover

Posted on Sep 8, 2008

Investors have been throwing money at stock markets the world over following the news that Fannie Mae and Freddie Mac have been placed under federal conservatorship. Some analysts are confident that the move will stabilize the mortgage giants and, in turn, a tanking housing market. With hundreds of billions of taxpayer dollars on the line, let’s hope they’re right.

Bloomberg:

U.S. stocks climbed, adding to a rally across Europe and Asia, on speculation the government takeover of Fannie Mae and Freddie Mac will stabilize the global financial system battered by $507 billion in credit losses.

Citigroup Inc., Wachovia Corp. and Bank of America Corp. added at least 6.6 percent after Treasury Secretary Henry Paulson said the government will provide short-term funding to mortgage lenders Fannie and Freddie. KB Home and D.R. Horton Inc. jumped more than 12 percent, sending a gauge of homebuilders to a four- month high. An advance in banks from Germany to Japan sent the MSCI World Index up 2.1 percent, the most since April.

Read more

More Below the Ad

Advertisement

TAGS: bailout banks capitalism fannie mae freddie mac government housing market money mortgage takeover treasury

Related Entries

November 9, 2009 Goldman Sachs Becomes ‘SNL’ Punchline
November 9, 2009 When Voters Disrupt the Tea Party
November 8, 2009 Kucinich: Why I Voted No
November 6, 2009 Steve Fraser on the Crisis of Capitalism
November 6, 2009 We Are What We Trade and How We Trade It

Email to a friend

Get truth delivered to
your inbox every week.

Previous item: MSNBC Revises Roles of Olbermann, Matthews

Next item: McCain Camp Assails Book-Banning Report as a 'Smear'

Elsewhere: .

Comments

Are you a Truthdig member yet? Login now, or register with Truthdig.

By Tony Wicher, September 8, 2008 at 8:08 pm #

Aegrus,

I read in several reports of the takeover that

“Under the conservatorship agreement, shareholders’ equity will not be eliminated, though common shareholders will be last in terms of claims on the GSEs assets.

Preferred shareholders will be placed second, after common shareholders, in absorbing losses”

Is there a silver lining for us the people? Maybe the greed of the wealthy is slowly forcing the government into socialism whether they like it or not. The health insurance industry is next. It’s going to happen when even business wants it.

Report this

By bookworm, September 8, 2008 at 6:21 pm #
(Unregistered commenter)

Aegrus,

I assume you are seeing how America has become a Corporate entity rather than the Republic it was intended and designed to be. While I agree with your sentiments the socialism reference is something you need to do more research on prior to aligning socialism to the needs of any corporate entity. Rather than go in to any sort of discussion via these limiting comments I defer you to some excellent information on that and many other topics. “The Age of American Unreason” by Susan Jacoby. It is an amazing read, very well documented and wholly enlightening on how we as Americans have enabled our country to be taken over by the needs of corporations.

Report this

By Aegrus, September 8, 2008 at 5:16 pm #

Boy these huge corporations sure do love themselves some socialism when their entire way of life is at stake. Wall Street seems to enjoy Socialism a lot too.

Socialism for those with tons of money, that is. Not for you and me. That’s Marxist, right? Taxes are the enemy when corporations have to pay them, but when you and I pay taxes… that’s just good government for business. Americans live solely to provide taxes for corporate subsidies according to the elite campaign John McCain is employed by.

Report this