Hey, let’s throw another $19 billion down the rat hole!

By Michelle Malkin  •  May 8, 2009 01:44 PM

The fraud-ridden money pit known as Fannie Mae needs more of your money.

Who among the Fannie-kissers in Congress will say no?

Say goodbye to another $19 billion:

Fannie Mae (FNM.P), the largest provider of U.S. home mortgage funding, said on Friday it needs more capital from the U.S. Treasury after a $23.2 billion loss in the first quarter, and warned government housing programs would cut deeper into its profitability.

The government-controlled company said its regulator requested $19 billion from the Treasury under a funding commitment that on Wednesday was doubled to $200 billion. The credit, in the form of senior preferred stock purchases, was established as soaring losses led the government to push the company into conservatorship in September.

As the nation’s housing market reels in its worst downturn since the 1930s, credit-related expenses accounted for the majority of Fannie Mae’s loss, at $20.9 billion. It also took a $5.7 billion loss on mortgage securities.

Provisions for credit losses soared 85 percent as the U.S. economy faltered, expanding delinquencies — which have wreaked havoc on the entire financial system — to consumers with better credit, it said.

Posted in: Subprime crisis

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Comments


  1. #697491
    On May 8th, 2009 at 1:46 pm, Jeff2161 said:

    19 Billion more…Almost seems like small potatoes nowadays.

    sarc

  2. #697492
    On May 8th, 2009 at 1:48 pm, spaceycakes said:

    another $19 billion down the rat hole!

    As someone born in the Year of the Rat, I resemble that remark.

  3. #697494
    On May 8th, 2009 at 1:50 pm, flmom said:

    I’m assuming those retention bonus’s paid to top Fannie execs will be paid back any day now.

  4. #697495
    On May 8th, 2009 at 1:50 pm, Regulus said:

    Who among the Fannie-kissers in Congress will say no?

    That’s good. You could be a good lawyer in cross-examination, Michelle — you don’t ask a question you don’t already know the answer to.

    I was thinking this morning, you remind me of a cross between Horatio at the Bridge and Marcus Cicero: standing, pen in hand, in the path of the oncoming march of the irresponsible, the irresolute, the feckless and the malevolent who will be the downfall of the Republic and exclaiming, “Stop!”

    You may not succeed — Cicero sure didn’t — but for fighting the good fight, you deserve unreserved admiration nonetheless.

  5. #697496
    On May 8th, 2009 at 1:52 pm, tre said:

    Now my Grandchildren’s Grandchildren will be in debt, too.

    But, hey, if we just keep throwing money at the problem, eventually, it’ll go away and we won’t need to get our hands dirty to solve it.

  6. #697497
    On May 8th, 2009 at 1:52 pm, cpodug said:

    Well, Jeff(#1), you know, like Everett Dirksen said, “A billion here, a billion there, pretty soon it adds up to real money.”

  7. #697498
    On May 8th, 2009 at 1:52 pm, corona said:

    Why not? Here are a couple of more examples of your tax dollars at work a few blocks from my home. 1) A large sign was installed – quite impressive, with two wooden posts about 10′ high, and the sign itself being about 5′ by 4′. One slight issue – four weeks later, the wrapping hasn’t been removed, so no one knows what it says. 2) At a nearby intersection, eight “press here to cross the street” buttons were installed. One slight issue – whether or not the buttons are pressed, the lights go through the green cycle with “walk” on.

  8. #697499
    On May 8th, 2009 at 1:55 pm, Flyoverman said:

    There is ZERO need to appropriate another penny. The $19 billion can come from the banks that want to return their TARP money.

    Problem solved, if they have half a brain.

  9. #697501
    On May 8th, 2009 at 1:59 pm, Jeff2161 said:

    “A billion here, a billion there, pretty soon it adds up to real money.”

    Back when a Billion meant something…Even a trillion doesn’t faze people much…

  10. #697503
    On May 8th, 2009 at 2:00 pm, Jeff2161 said:

    Problem solved, if they have half a brain

    Assumes facts not, in evidence…

  11. #697506
    On May 8th, 2009 at 2:05 pm, frontierguy said:

    Maybe they are thinking, when China completely owns us, they won’t bomb us. Why would China take out their own property?

  12. #697513
    On May 8th, 2009 at 2:12 pm, Auggie Dog said:

    Still waiting on my bailout. Do I just keep mailing in these checks every month? Or is that my mistake. Maybe if I hold on to my money the one will give me more? I’m not sure how these financial things work anymore. After all, I’m just a lower middle class caveman, who always paid his bills on time.

  13. #697518
    On May 8th, 2009 at 2:16 pm, cheapseat said:

    let’s all hold our breath while bawney comes down and chastizes these crooks as he did with those slug bankers. i’m waiting for the acorn busses to pull up in front of these wonderful civil servants mansions in connecticut and march a little “what do we want, justice. when do we want it, now” ditty and give the msm a photo-op quote about how these wonderful people are keeping those evil bankers from repoing their houses. PRAISE OBAMA!

  14. #697520
    On May 8th, 2009 at 2:16 pm, Flyoverman said:

    On May 8th, 2009 at 2:00 pm, Jeff2161 said:

    Problem solved, if they have half a brain

    Assumes facts not, in evidence…

    I was off my meds…….. sorry. :(

  15. #697523
    On May 8th, 2009 at 2:18 pm, granite said:

    On May 8th, 2009 at 1:50 pm, Regulus said:

    Agreed.

    O tempora, o mores!

  16. #697526
    On May 8th, 2009 at 2:20 pm, bjc said:

    *Rat hole, rat bastard, what’s the difference when you’re talking about Barney Frank, Chris Dodd, et al; It’s time to abolish the Federal Reserve, let all these entities like Fanny bleed out, and commence with a recovery based on Austrian Ecomonics and a Federal Government living within its’ means; Catastrophy awaits otherwise.

  17. #697527
    On May 8th, 2009 at 2:21 pm, Flyoverman said:

    After all, I’m just a lower middle class caveman, who always paid his bills on time.

    That’s your place you knuckle dragging, bitter, bigoted, zealot, homophobe. ;)

    ACORN needs funding and the donors need some skin so pay up……

  18. #697542
    On May 8th, 2009 at 2:31 pm, Auggie Dog said:

    That’s your place you knuckle dragging, bitter, bigoted, zealot, homophobe.

    You forgot Xenophobe! Libs love that word.

  19. #697546
    On May 8th, 2009 at 2:32 pm, Pasadena Phil said:

    Get this: stock market is rallying today on better than expected job losses. Why is it better? Government hiring is way up. Number rigged and manipulated everywhere you look.

    Yet Obama made another speech yesterday about how his budget will cut the budget deficit in half and how his “stimulus” spending will creatint 4 million new jobs with 90% of them being private sector jobs.

    Add that to what looks to me like bank mutual funds leading the charge in this market rally and… well…

    That is certain to boost investor confidence. The new “free” market forces.

  20. #697548
    On May 8th, 2009 at 2:33 pm, sonofdy said:

    Well considering they are starting to have trouble getting anyone to LEND money to the usa anymore…. oh what the F. Free ponies for everyone. We will all be bankrupt in a year anyway so live it up!!!

    wwwaaahooooo

  21. #697553
    On May 8th, 2009 at 2:39 pm, Jeff2161 said:

    Yet Obama made another speech yesterday about how his budget will cut the budget deficit in half.

    He can just cram-down the debt by, ‘Doing a Chrysler’

    sarc

  22. #697554
    On May 8th, 2009 at 2:40 pm, Jeff2161 said:

    Free ponies for everyone.

    How’s that go ? There must be a pony here, look at that huge pile of manure.

  23. #697557
    On May 8th, 2009 at 2:42 pm, st_james said:

    Just keep printing money and diluting the dollar until we all have nothing. Then we can start over under our Chinese masters.

  24. #697559
    On May 8th, 2009 at 2:43 pm, spaceycakes said:

    Free ponies for everyone

    No thank you. As my late father used to say “I don’t want anything else with a mouth or a butthole.”

  25. #697560
    On May 8th, 2009 at 2:44 pm, WernerP said:

    Honestly, does it really make any difference at this point? We could easily add another zero and make it $190 billion. The hole Washington has dug for the entire country is already so deep that congressmen can now easily slip through and come out in China to go to the bathroom there.

  26. #697562
    On May 8th, 2009 at 2:47 pm, Pasadena Phil said:

    Euro has broken out while the dollar is cratering again. Commodities are also rallying. Wonder why?

  27. #697569
    On May 8th, 2009 at 2:56 pm, prendad said:

    NO PROBLEM Fannie Mae! Obama to Printing Room: PRINTING PRESSES TO FULL POWER!
    Printing Room: Ah but Captain, she can’t take much more of this!
    Obama/Captain: Give me all you’ve got Scotty/American Taxpayers. I need more power/money.
    MORE POWER, MORE POWER, MORE. . . .KAAAAABBBOOOOOOOOOOM.

  28. #697572
    On May 8th, 2009 at 3:03 pm, Hangfire said:

    I think a few more executive suicides are in order before we give Fannie Mae or Freddie Mac another cent.

  29. #697583
    On May 8th, 2009 at 3:19 pm, rfjjulie said:

    Spaceycakes:

    Thanks, I needed that laugh today! :-)

  30. #697595
    On May 8th, 2009 at 3:32 pm, John Deaux said:

    On May 8th, 2009 at 2:33 pm, sonofdy said:
    Well considering they are starting to have trouble getting anyone to LEND money to the usa anymore….

    Of course, it could be because they have shown that debt means nothing and they can wipe it out with a simple threat. That applies to all lenders, foreign and domestic.

  31. #697609
    On May 8th, 2009 at 3:54 pm, Rogue Cheddar said:

    Barney: “Come on! Cough it up! Baby needs new shoes!”

  32. #697648
    On May 8th, 2009 at 4:33 pm, tiredofit08 said:

    fannie-kissers??….yuk…suppose barnie would like it though….lol

  33. #697650
    On May 8th, 2009 at 4:35 pm, hawkeye54 said:

    Just keep printing money and diluting the dollar until we all have nothing. Then we can start over under our Chinese masters.

    Or our muslim masters, or our aztlan masters….depending on what part of the USA you live in when its divied up.

  34. #697653
    On May 8th, 2009 at 4:36 pm, hawkeye54 said:

    suppose barnie would like it though

    Now there’s a visual thought I don’t need. : )

  35. #697663
    On May 8th, 2009 at 4:42 pm, spaceycakes said:
  36. #697723
    On May 8th, 2009 at 5:42 pm, cabrerski said:

    It’s Friday, and I believe we need a song (sung to the tune of “The Candy Man”)…

    Who can take a union, sprinkle it with dew
    Cover it with protection and a bailout or two
    Obama Man, oh Obama Man can
    Obama Man can ’cause he mixes it with tripe and makes the media tell lies.

    Who can take Fannie Mae, pull it out of a tush, spin around and blame it on Bush.
    Obama Man, Obama Man can
    Obama Man can ’cause he mixes it with tripe and makes the media tell lies.

    Obama Man hides and to nothing he abides, evasive and seemingly able,
    Now you criticize him at your dinner table, you will wear the racist label.

    Oh, who can take on Wall Street, bring it to its knees,
    Spend all the nation’s wealth before the ice caps unfreeze
    Obama Man, oh Obama Man can
    Obama Man can ’cause he mixes it with tripe and makes the media tell lies.

    Obama Man reads as fast as TOTUS speeds it really so very eerie
    Talk about your Constitution, you citizens had best be leery

    Yeah, yeah, yeah
    Who can take our future, dip it in some sh*t,
    Show it to Congress and they think he has the wit
    Obama Man, the Obama Man can
    Obama Man can ’cause he mixes it with tripe and makes the media tell lies.

    Yes, the Candy Man can ’cause he mixes it with tripe and makes the media tell lies.

    Obama Man, Obama Man, Obama Man
    Obama Man, Obama Man, Obama Man
    Obama Man, Obama Man, Obama Man

    -with apologies to Sammy Davis, Jr.

  37. #697749
    On May 8th, 2009 at 6:12 pm, CO2 Producer said:

    I hear that $17 billion is a lot of money except in Washington, D.C. Must be true. That’s why Fannie’s looking for that plus another measly (in Washingtonian terms) two billion more. Good thing that 17 billion is getting freed up from the budget. Now we can use that money to enable—I mean, help out the poor homeowners some more.

  38. #697945
    On May 9th, 2009 at 8:12 am, RabbidSquirrel said:

    On May 8th, 2009 at 1:59 pm, Jeff2161 said:

    “A billion here, a billion there, pretty soon it adds up to real money.”

    Back when a Billion meant something…Even a trillion doesn’t faze people much…

    Its like with computers. Back in the day when we thought we could never go beyond 640K (thousand) of memory, we tried to do every trick in the book to keep the entire OS and all programs using just that 640K.

    Now days when you can put 64 Gigs (billions) of main memory on a system, it still isnt enough.

    I can easily put an array of multi-petabyte (trillion) hard-drives in my home computer when 20 years ago a 10 Meg (milllion) drive was astronomical storage.

  39. #698046
    On May 9th, 2009 at 6:41 pm, lgm said:

    Would that rat hole be next to the Star Wars hole and down the block from abstinence only sex education and across the street from Blackwater contractors?

  40. #698178
    On May 10th, 2009 at 12:11 pm, txvet2 said:

    On May 8th, 2009 at 2:47 pm, Pasadena Phil said:

    Euro has broken out while the dollar is cratering again. Commodities are also rallying. Wonder why?

    Glad I’m in commodities. Talk about your mixed feelings. My stocks are going through the roof and my money’s becoming worthless at the same time.

  41. #698278
    On May 11th, 2009 at 3:46 am, conservative in europe said:

    On May 10th, 2009 at 12:11 pm, txvet2 said:

    On May 8th, 2009 at 2:47 pm, Pasadena Phil said:

    Euro has broken out while the dollar is cratering again. Commodities are also rallying. Wonder why?

    Glad I’m in commodities. Talk about your mixed feelings. My stocks are going through the roof and my money’s becoming worthless at the same time.

    Exactly the economic model of what Hitler did in the ’30’s. Eventually, the Fed will come out with “new money” and exchange it for Dollars in fractions. Like Mexico lopping off zeros for the “Peso Nuevo”. This allows the Govt. to control not only the average guy’s finances (taking pillow stuffing material out of the equation), but it forces those evil rich people hiding dollars offshore to cash in for the new stuff.

    Ten to one says we see this if Blue Lips gets a second term.

  42. #698741
    On May 11th, 2009 at 6:27 pm, DBNinKY said:

    On May 9th, 2009 at 6:41 pm, lgm said:

    Would that rat hole be next to the Star Wars hole and down the block from abstinence only sex education and across the street from Blackwater contractors?

    Nah – it’s next to the Tax Cut for 95% of all Americans located on Transparency Lane, which is just up the road from Out of Iraq in 16 Months avenue.

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