The Golden Truth: Re: Fannie Mae: Inquiring Minds Would Like Know...

Friday, November 6, 2009

Re: Fannie Mae: Inquiring Minds Would Like Know...

We know, more or less, how much money was taken from the Taxpayers and given to Goldman and other firms in order to monetize AIG's derivatives problems at 100 cents on the dollar. And Geithner was responsible for that payout and why should he care - he skips out on paying taxes anyway.

But most people are probably unaware that Fannie Mae was also one of the world's largest users of derivatives. I would love to know how much of the $60 billion Fannie Mae has purloined from the Taxpayers has gone to pay out Goldman, et al. There is no doubt in my mind that derivatives were more responsible for FNM's collapse than mortgage defaults. Would love to hear anyone's thoughts on this.

3 comments:

EconomicDisconnectFriday, 06 November, 2009
Dave,
FNm defaults were pretty bad, but yes, I would have to think all thier hedging via derivitives blew up badly as well. Maybe 5 years from now we might now, less if a collapse happens.

From last thread:
The Steelers make about 2-3 big mistakes per game, if you burn them on those you have a chance. So I think turnovers will be the difference. I like the Steelers to win, but in no way is it a lock.
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Dave in DenverFriday, 06 November, 2009
The collapse happened over 4 years ago when they thew Franklin Raines out as CEO. I have no idea why he has not been investigated. That fucker should be in jail. I was at a wedding back in late '04 that he also attended. It took all of my spiritual fitness to not go over and beat the living shit out of him. He's beyond vile.

I did a big write-up on FNM and showed why it was technically insolvent in late '04 that Midas published. I lost the file after several computer blow ups, but if I ever track it down I'll publish it on the blog. Robert Chapman cut and paste my write-up from Midas and published it in his International Forecaster newsletter as well.
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Dave in DenverFriday, 06 November, 2009
re: Broncos/Steelers. I LOVE Denver getting 3 points at home. I would not be surprised to see Denver come out and take control of the game early, the way Baltimore did to Denver.

Steelers are somewhat one-dimensional with the pass and I would McDaniels puts together a nice offensive gameplan with plenty of creative surprises. Steelers will be missing some defensive players as well.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.