US taxpayers have to bear few trillions more debts

last SG · 2008-07-12T12:46:34+00:00

Remember Fannie Mae's is using $1 to bear $65 debtThey sell the debts AND gurantee the principal of debtand interest for the term of the mortgage !!In the fa...

lionnoisy SG

Few of us know US gavaman bears half of US mortgages.

If anyone say subprime crisis is near over,i invite him to read

http://www.nytimes.com/2008/07/11/business/11fannie.html?partner=MARKETWATCH

http://online.wsj.com/article/SB121573360015444221.html?mod=mktw

US tax payers may have to bear few trillions dollars Federal debts,

thanks to Fannie Mae and Freddie Mac,the two companies

guranteed by US gavaman.

http://www.sgforums.com/forums/10/topics/303285

i think in the past one or two decades,US gavaman have over

lent money to home buyers,to create a rosy economy pictures

and high growth.

Gavaman allows Zero down payment and even over 100% loan!!

To me,any loan over 80% of price is sub-prime.

lionnoisy SG

read my expired posting.

u will surprised that US banks ,as at branch level,had a target

to lend!!Thats why Tom,Dick and Harry can buy a home.

If a family cannot save a down payment of say 20%,

how can they have discpline and ability to pay long term instalments?

Since they have not paid any down payment or very low down

payment,there is high incentive for them just mail back

the keys to the banks!!The instalments they have paid just treat

as rentals.

The companies are by far the biggest providers of financing for domestic home loans. If they are unable to borrow, they will not be able to buy mortgages from commercial lenders. In turn, that would make it more expensive and difficult, if not impossible, for home buyers to obtain credit, freezing the United States housing market. Even healthy banks are reluctant to tie up scarce capital by offering mortgages to low-risk home buyers without Fannie and Freddie taking the loans off their books.

Together the two companies touch more than half of the nation’s $12 trillion in mortgages by either owning them or backing them. They hold more than $1.5 trillion of the mortgages as securities. Others are sold to investors in the form of mortgage-backed bonds.

lionnoisy SG

The two ginats drops 40 to 45 % on early Friday trading!!

http://www.marketwatch.com/news/story/fannie-mae-freddie-mac-shares/story.aspx?guid={FBD22BF7-DC93-405D-A1AE-4C3DF8A5712F}&dist=TNMostRead

Freddie Mac as at 11 july 2008 morning US ET.

lionnoisy SG

SingaporeTyrannosaur SG

Are you happy about all this?

Do you seriously think this is good news for Singapore?

Our own government has said this year, if the US economy goes down, we go down with it.

Is it possible for you not to shoot yourself in the foot with each new topic you make?

jojobeach SG

Lionverynoisy,

Are you sure you are Singaporean anot har ?

If you are.. you are really making us look very stupid leh. Can you please stop embarrassing us anot har ?

My American friends, if they ever see this post.. they will be laughing at us ok ? You sibeh xia suay us leh !!

The two companies stock go down .. so WHAT ?

stupidissmart SG

True true... it is bad news for singapore

It just shows a democratic country like US have problems as well.

jojobeach SG

True true... it is bad news for singapore

It just shows a democratic country like US have problems as well.

Yah got many problems.

My rich friends are now going on a shopping spree to buy up more cheap cheap properties.

Only poor and ignorant chaps like you think the world is coming to an end.

Singapore got the Great Singapore sale .. USA is now also big sale going on.

stupidissmart SG

right.... I believe u.....

claiming is always easy ma

jojobeach SG

right.... I believe u.....

claiming is always easy ma

Ofcors. You no believe me.. you come USA and see yourself lor.

My brother also looking at 3 properties .. now is super cheap.

stupidissmart SG

good for u... bad for the americans... buy more while u still have the chance

jojobeach SG

Excwees me ? Why bad for the Americans ?

Americans with cash are soaking up the market now. What talking you ?

This subprime crisis will not likely to happen again. The Americans have learnt their lessons.

Now they are tightening the loan requirements. You know what will happen after this ?

AndrewPKYap SG

If the US politicians tax the people like the despots tax silliporeans, they would be richest people in the world. They are the richest government in the world, but the money is not in government hands but in the hands of each and every American.

For example, probably a tax of 50 US cents would wipe out all the government debt.

Honorable politicians leave the money with the citizens, despots take the money from the citizens.

Edited "probably a tax of 50 US cents" to " probably a petrol tax of 50 US cents would wipe out all the US government debt."

AndrewPKYap SG

Apathetic silliporeans let the despots screw them and yet continue to praise them.

Ariedartin SG

Strange maxims you have there.

AndrewPKYap SG

The despots take the money and lose it to foreigners.

Intra-day chart

BARCLAYS (BARC.L)At 4:35PM : 267.75 p 16.75 (5.89%)

Yearly chart below, no prizes for guessing where the despots gave the foreigners Singaporeans hard earned money...

stupidissmart SG

obviously the subprime crisis had made a lot of people in america to be poorer and even bankrupt. A lot of borrowers r forced to become bankrupt because they cannot return the money. A lot of bankers and loaners have closed down and lost their jobs and a lot of banks with good potential have been sieged by this crisis. Gov have spent a lot of money trying to solve tis problem. It is a surprise tat people feel tis is good for america. If it is good, then they should come out with more crisis on a regular basis.

And it is debatable on whether is USA taxing lesser from the people. To clear the debt, each american have to use 31,100

http://en.wikipedia.org/wiki/United_States_public_debt

jojobeach SG

And it is debatable on whether is USA taxing lesser from the people. To clear the debt, each american have to use 31,100

http://en.wikipedia.org/wiki/United_States_public_debt

Define ALOT of people. Who are these people. And why are they involved in the subprime crisis in the beginning.

And why are you siding with the banks and loaners? You think they are saints ? LOL. You think those institutions are charities ? No.. they made TONS of money from commoners.

It is out of greed those banks are now suffering.. and because of their greed.. commoners are suffering. You go kiss the bankers ass some more lor.

You cannot even differentiate who are the good guys from the bad guys !!

Obviously the schools in SG are still not encouraging critical thinkings eh ? SAD

Melbournite SG

yes i believe money shoud be in the hands of citizens....at least the government do away with the burden..

lionnoisy SG

For example, probably a tax of 50 US cents would wipe out all the government debt.

Honorable politicians leave the money with the citizens, despots take the money from the citizens.

Edited "probably a tax of 50 US cents" to " probably a petrol tax of 50 US cents would wipe out all the US government debt."

Andrew,i think your English is much better than mine.

But it seem you dunt understand US Federal debts fully.

EACH US citizen currently bears US$31,230.70 of Federal debt,

before any subprime liability,eg

Fannie Mae and Freddie Mac

and the

which is just taken over by Federal!!

Unlike SG where each citizen has a stake in US$100 to 300 billions

net assets!!

http://www.brillig.com/debt_clock/