Help to stop the Insanity!
All the stops have been pulled for a swift Fannie and Freddy rescue.
Note: A federal Bailout w/taxpayer money won't solve anything and regardless of gvt. actions, neither company will ever be restored to what they once were, nor will housing recover anytime soon.
SEC Emergency Order Leads to Dramatic Drop in Short-Selling of Fannie Mae and Freddie Mac Securities
Business Intelligence Firm Reports 90 Percent Reduction in Short Selling
According to market statistics analyzed by S3 Matching Technologies, the SEC's emergency order to enhance investor protections against "naked" short selling in 17 financial institution securities has reduced short sells by about 70 percent for the targeted symbols, and 90 percent of short selling of Fannie Mae and Freddie Mac securities. S3, which processes trades for the country's largest brokerages, compared short sells of Monday, July 14, prior to the SEC order, and Monday, July 21, the first day the emergency rule was implemented.
"Looking at the data from our clients," said Jack Holt, CEO of S3 Matching Technologies, "it seems clear the market responded to what regulators wanted. Short sells, 'naked' or not, have accounted for a little over 1 percent of our clients' total volume. 2/3rds of that short sell volume disappeared on the first day the rule went into effect. For Fannie Mae and Freddie Mac, it's more dramatic at 90 percent."
Previously CEO of Goldman Sachs and currently head of our Free Market Economy's Plunge Protection team, US Treasury Secretary Paulson Talking Up Housing Bill
Bush Drops Veto Threat on Housing Bill
Lawmakers Agree on Outline of Pact That Includes Relief for Fannie, Freddie
The White House said Wednesday that President George W. Bush has dropped his opposition to the housing package. House and Senate leaders have largely hammered out a compromise deal on a mammoth package that would permit the government to bolster Fannie Mae and Freddie Mac in an emergency, overhaul supervision of the housing-finance giants and allow the government to insure up to $300 billion in refinanced mortgages.
Lawmakers plan to raise the public-debt limit as part of the legislation to $10.6 trillion from $9.8 trillion. Congress must vote to increase the limit to account for additional borrowing, something it is loath to do, although it would have had to take that step this year even without the rescue plan for Fannie and Freddie, Democratic aides said.
Wall Street's laughing all the way to the bank
The credit crisis really puts the free in free market. The freest market is supposed to be the United States, and the evidence in favour of that argument is mounting. It's just not what you think. Free, in this case, means a free ride for a select group of people. Wall Street never looked so good, or bad, depending on your perspective.
According to the New York State Comptroller's Office, the big banks paid $33.2-billion in bonuses in 2007, down only slightly from 2006, an even more splendid year for subprime origination. During the past four years, bonuses closed in on $100-billion, not far off the writeoffs and the stimulus package.
It's pretty clear what's happening. Ultimately, the people are borrowing to pay Wall Street bonuses. After all, these handsome rewards are based on the earnings of the banks, but they're not real earnings, since the assets that produced them are subsequently written off.
So, what are "we the people" doing about the outragous lies, incompetent leadership, market manipulation and intentional wrongdoing of many in the financial industry?
Financial Crisis Protest - New York, April 25, 2008; people are finally waking up and taking action:
Stop the Bailouts
Petition To STOP THE BAILOUTS! -- Please sign!