cancel
Showing results for 
Search instead for 
Did you mean: 
Senior Advisor

The next installment.

TARP was only a down payment, the bill comes due again. And of course, Barney Frank tells us we need not worry about freddie/fannie, we'll look into them sometime in the future. Right now he has buddies to pay.

 

snip-

The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.

Fannie and Freddie, now 80 percent owned by U.S. taxpayers, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund. That surpasses the amount spent on rescues of American International Group Inc., General Motors Co. or Citigroup Inc., which have begun repaying their debts.

“It is the mother of all bailouts,” said Edward Pinto, a former chief credit officer at Fannie Mae, who is now a consultant to the mortgage-finance industry.

Fannie, based in Washington, and Freddie in McLean, Virginia, own or guarantee 53 percent of the nation’s $10.7 trillion in residential mortgages, according to a June 10 Federal Reserve report. Millions of bad loans issued during the housing bubble remain on their books, and delinquencies continue to rise. How deep in the hole Fannie and Freddie go depends on unemployment, interest rates and other drivers of home prices, according to the companies and economists who study them.

 

http://www.bloomberg.com/apps/news?pid=20601109&sid=an_hcY9YaJas&pos=10

13 Replies
Senior Contributor

Re: The next installment.

Lets get on with making the next installment. Right now we can print the paper quite cheaply, much cheaper than what others value it at, so lets get with it. Printers roll on!!!

---3020, at this point, what alternative is there but to crank up the presses?

Senior Contributor

Re: The next installment.

Heck, we should all just get our own presses and just print our own cash. You know, skip the middle man. That would immediately solve all of our financial woes. I`m actually shocked that you guys on the left have not thought of that.

Senior Contributor

Re: The next installment.

To my knowlege printing your own money is against the law. It is called forgery, or counterfiting..

?Why do you guys on the right always want us to break the law?

Senior Advisor

Re: Or we could tax the people

To pay for the cost of government. If you want to spend trillions on defense/offense then pay for it. 

Senior Contributor

Re: The next installment.

I didn't`t know this administration followed any laws.

Senior Advisor

Re: The next installment.

Printing money is like gambling, it is fine as long as the government is in control.

Senior Contributor

Re: Or we could tax the people

You want to spend trillions on health care and other entitlements then pay for it..............Get your checkbook out Don. ..............Please pay my extra share since you think your funds available to pay new taxes is unlimited.

Senior Contributor

Re: The next installment.

Yeah, you are right. Stop the local gambling at the various clubs (Moose, VFW, ect.). Take that money that they donate to local charities (boys and girls clubs, ect.) and put it in the federal coffers. The government knows what to do with it......

Senior Advisor

Re: Actually I do have my checkbook out

And have had it out for quite awhile. I have been paying taxes and health insurance premiums since the 1950's. I've been subsidizing opther peoples healthcare since then and wish it had paid for benefits instead of enriching insurance companies. I do beleive in shared risk but domn't care much for profiteering off of it.

 

On the other hand I have been paying Social security for the same period of  time and you folks chose to use much of those funds for military spending and wars of choice. Among other things building thousands of nuclear weapons which cannot be used. Enough is never enough for the military industrial complex. But they would rather spend money on that than help people stay healthy and alive.

 

People are most likely to have life threatening disease than to be attacked by an islamic radical, yet we will spend trillions on that and not much to  make healthcare affordable.

 

Now about your taxes. You buy a newer tractor and take fast depreciation. A $50k or $100K tractor depreciated in one year when life expectancy of the tractor is minimally 20 years or longer. A direct writeoff of 100% against your $100K income. Thus you have avoided most of your taxes for this year and you can do it again next year on another item. What can a salaried person do that can anyway avoid a significant portion of his tax liability. Thus you can avoid $20K  of inciome taxes yeatr after year and you have the gall to complain about your tax burden.

 

I'm not buying machinery.  At least not for me. But I wish you would consider what your tax bill would be if you were only allowed to deduct  prorated depreciation on purchased equipment. I think farmers and businesses have one heck of a deal in the tax code and we of all people should not complain.