Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Paulson Bailout of Freddie, Fannie and PIMCO Translated

Stock-Markets / Government Intervention Sep 08, 2008 - 06:24 PM GMT

By: Mike_Shedlock

Stock-Markets Best Financial Markets Analysis ArticleFinancial Institutions Must Be Allowed To Fail

Paulson: "Homeowners should not anticipate a government bail-out. Banks should not expect to be bailed-out by government, despite intervention by the Federal Reserve in the near-collapse of Bear Stearns in March."

Translation: Critical banks and GSEs must not be allowed to fail.

Paulson: "For market discipline to be effective, market participants must not expect that lending from the Fed, or any other government support, is readily available. For market discipline to effectively constrain risk, financial institutions must be allowed to fail."

Translation: Expect the mother of all bailouts at taxpayer expense.

July 10 2008

Fannie, Freddie 'Insolvent' After Losses

Former Fed Governor William Poole: "Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer"

Translation: "Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer"

July 11 2008

Paulson Backs Fannie, Freddie in Their 'Current Form'

"Today our primary focus is supporting Fannie Mae and Freddie Mac in their current form as they carry out their important mission"

Translation: We are working behind the scenes to address the inevitable failure of Fannie Mae and Freddie Mac. There is no conceivable way that Fannie and Freddie stay in their current form.

July 11 2008

Fed Says No Talks With Fannie, Freddie About Loans

Fed spokeswoman Michelle Smith: "There have been no discussions with the GSEs about access to the discount window"

Translation: We have plans to discuss the discount window with the GSEs as early as Monday, July 14.

July 13 2008

Paulson Statement on Freddie Mac, Fannie Mae

Paulson: "Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies."

Translation: There is not a snowball's chance in hell that Fannie and Freddie survive in their current form. We are working on contingency plans right now.

July 17 2008

Merrill Lynch: Don't forget the salt

Merrill Lynch CEO John Thain: “Right now we believe that we are in a very comfortable spot in terms of our capital.” (July 17, 2008 — Thain on a conference call after posting Merrill's second-quarter results)

Translation: We have nowhere near enough capital. If you believe we do, then you are a complete fool. After all, I have stated Merrill has no need to raise capital 8 times this year only to immediately raise capital. (See above link).

July 20 2008

Banks sound but economy to take time

Paulson: "Our banking system is a safe and a sound one."

Translation: Our banking system is on the verge of collapse. (Please see You Know The Banking System Is Unsound When.... for more on this theme)

July 23 2008

Death Spiral Financing at WaMu, Merrill Lynch, Citigroup

Washington Mutual CEO Kerry Killinger: "The capital that we have in place is sufficient to manage through this period. We have no plans at this point to raise additional capital."

Translation: We desperately need to raise capital. Unfortunately, death spiral financing and low share price prevents us from doing so.

August 19 2008

Freddie and Fannie fix under market pressure

Treasury Department: The Treasury has no intention of using its newly authorized power to invest in either the debt or equity of Fannie and Freddie.

Translation: We have every intention to invest in the GSEs, and far sooner than anyone thinks. We never would have asked for a blank check if we did not think we needed it. Boy do we need it.

August 22 2008

Buffett Says Fannie Mae, Freddie Mac 'Game Is Over'

Warren Buffet: "Fannie Mae and Freddie Mac, the two largest mortgage finance companies, don't have any net worth. The game is over as independent companies."

Translation: "Fannie Mae and Freddie Mac, the two largest mortgage finance companies, don't have any net worth. The game is over as independent companies."

September 4 2008

Bill Gross Wants Treasury To Buy Assets To Prevent Tsunami

Bill Gross: "Unchecked, it can turn a campfire into a forest fire, a mild asset bear market into a destructive financial tsunami. If we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury."

Translation: Please rescue PIMCO. I bet the farm on a bailout.

Take A Load Off Fannie

click here to play video

The video is very enjoyable with a great song throughout.

My analysis of what's at stake for the taxpayer can be found in Paulson Rolls The Dice At Taxpayer Expense .

By Mike "Mish" Shedlock

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at .

© 2008 Mike Shedlock, All Rights Reserved

Mike Shedlock Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


John Cunningham
08 Sep 08, 19:04
FRE/FNM Bail Out

The Chinese Red Army has been bail out by the U.S. Treasury. However, the American Equity stock holder in FRE/FNM are told to eat CAKE.

The U.S. Treasury has always staed publicy that it wanted the GSE to remain in "Current Form".

The Smog of China has nothing on the smoke and mirrors of Washington when it come to addressing the Americam people. Unfortunatley we have been lied to again by the Bush Administration.

Doug Horton
17 Sep 08, 04:23
China demands U.S. taxpayer bailout, yet refuses to repay Americans

The Congressionally-sanctioned bailout of China and Pimco is beyond outrageous. China demand the U.S. cover their bets, yet refuses to repay Americans holding Chinese government bonds:

China repaid the former Soviet Union for debt used to acquire weapons to kill Americans:

The irresponsible incumbents in the Congress need to be kicked out before they bring ruin to America.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in