How will Freddie and Mac affect most americans?

Question

I heard the USA government is rescuing Freddie and Mac. How will that affect most americans?

Answer 1

Industrial and Technical Economics yield numerous benefits. Among these benefits is an opportunity to salvage errors in policy and spending. Corrections have provided an ethical dilemma for business and political leaders. The matrix of possibilities for any given economic event is relative to planning and policy.

Accrued wealth is a tangible intangible upon which many decisions are made. Corruption is a hazard when the complex denominations of human and material resources offer profitable opportunities to special interests. The concept of being protected from failure has been learned and studied by leadership in both private and public sectors.

Recoveries from financial scandals and drains upon the federal treasury have demonstrated a resilience upon which corruption feeds. The well of wealth is essentially always half full. When it is drained, like an aquifer it replenishes.

Fannie Mae and Freddie Mac are bailout programs from the beginning. They are accounting structures to measure and monitor real property access of Mainstream America. The safeguards of these federally funded programs are what corruption has been feeding upon. Someone is profiting from these paper losses and write downs. Greed has become very sophisticated.

It cost taxpayers nothing. Industrial and Techincal Economics identify how access to wealth is explained to maintain an almost feudal caste structure. Industrial wealth is accrued by the excess production of labor. Industrial economies can spend more than the tax revenues collect based upon continual growth. The target of how much is enough is a sometimes dubious nebula.

Explaining wealth in financial terms to which Mainstream American can relate allows wealthy elite and a leadership class to monitor access to excess production. Most people are so consumed by the redundant treadmill of earnings and taxes that the machinations of the financial marketplace become too overwealming to understand. Financial double speak keeps Mainstream America working and guessing

Answer 2

I think most americans will have to pay higher taxes as a result of this rescue.  This rescue can potentially end up costing the US government $300 billion dollars.  And that may not be the end of it.  Because both of these companies have many trillions of dollars in obligations.

For now, the US government keeps borrowing huge sums of money from private investors and from foreign governments such as China, Japan, Russia, and others.  And US taxpayers are not yet fully aware of the huge tax bills that are awaiting them in the future.  

But eventually these taxes will have to be paid.  And they will be paid with interest to the lenders.  Neither foreigners nor private investors are going to become charitable organizations and keep lending more and more money to the US government forever and ever no matter how big the debts get.  Some day in not too distant future these lenders will want their money back with interest.  And that's when US taxpayers will really find out the full cost of their government's largesse.

Answer 3

a weaker us dollar, and higher mortgage interest rates with lower home prices

Answer 4

That's Freddie Mac and f***y Mae.  Won't affect us one bit.

Answer 5

mmm I'm not American, but I have taken some interest in its economic situation as I'm an international studies student. From what i can see, this will have some affect on everybody. If the government rescues Freddie Mac and f***y Mae, then it will be the tax payer who funds it, taking money from other areas. If they were to collapse then mortgages will be harder to get hold of, and much more expensive. Anyway this is the simple version, it will be interesting as to what happens!