Can Fannie Mae and Freddie Mac emerge as victors from the present climate of the financial markets ...?

Question

The Powers at large have decided to assist in the financial rescue of the fortunes of the two temporarily submerged in monetary adversity.

Do we hold great hope they will survive the impending doomsayers prophecy of recession, and overcome hardship and emerge mightier and prosperous... ?

Answer 1

Currently, the world economic climate is a stormy one and it may never fully recover from its present problems.

Due primarily to greed expressed in the form of capitalism and at the expense of an ever growing number of "have nots" while benefiting only a privileged few (most of whom inherited and did not ear their wealth...) the world economy followed the Western model of "me first, mine, mine again and eventually/maybe you but you never get as much as me..."

Economies were built on material goods that do not last (and some were made to break down faster so as to create more demand) and limited resources devaluing human beings, using the same and the natural environment as disposable tools.

Currently wars are being waged over the control and acquisition of oil under the smoke screen of political ideologies of "liberation".  In many areas of the globe, water will be the next resource for which persons will die so as to gain control.  Other natural resouces, held at this moment by many "third world" countries, will also become targets of those nations attempting to maintain and continue their unrealistic lifestyles at the expense of the rest of humanity.

It is to be hoped that eventually all of humanity will awaken to the absolute need for all persons and all nations to work cooperatively together for the mutual beneift of all and of the planet itself so as to insure the survivial of the same.

To do this, the often artificially inflated standard of living may well need to change for many Westernized nations where the difference between "need" and "want"   must be learned by the citizens of the same, as well as the concept of the whole of society supporting all of society, supporting the environment and all life on this planet.

Humankind has historically shown and proven that it has the ability to adapt to changes that have arisen naturally and have been created by mankind and that such can be done in a positive manner.  Sadly, mankind has also demonstrated its willingness to act in a converse manner as well.

Each individual will have to choose, beginning in this present moment, as to which course he or she will follow.

May it be well with each and may all make wise decisions that are of benefit to ones self and to all others.

For an interesting perspective on this, please read, "Ethics for a New Millennium", by His Holiness the Dalai Lama which was published some time hence but which is very appropraite regarding the present situation we find ourselves in at the moment.

Be well.

Answer 2

shareholders will just have to look forward to dilution if they are not taken over.

Answer 3

I have no knoweldge of this than I'm a fool to come here but oh well i did my choice can't change the law now.

Answer 4

If people work hard, I think so!  What will the CEO's do remains to be seen.  If they are greedy and focussed on the short term we could be in trouble.

Answer 5

FNM and FRE reportedly have $80 Billion in capital and $5 Trillion in mortgage loans. This is about 1 out of ever home loans in the USA.

If these companies were to fail, the Great Depression would look like an e-Ticket ride at Disneyland. The gov/ FED had no choice to back them up.

The housing, bank, lending, credit, oil, Iran, Iraq, USD, economy, (name anything) is not over. We are looking at several years min to correct this.

Answer 6

no, they're screwed.

Except, they have an all but limitless supply of federal funds to bail them out, so in this sense they come under the "too big to fail" class of company.