Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

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

6 Critical Money Making Rules