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[FRE07962128]

You thought you had financial problems, and the Northern Rock fiasco was bad, but this is 25 times as bad!!

It has just been announced (at 16:15 GMT) that the US Government have taken control of these American mortgage companies in a package worth £2.7 trillion (apparently twice the UK economy!) to under-right their liabilities as both have been deemed to be unsafe to continue to trade as they currently exist.

Freddie Mac and Fannie Mae both control mortgages worth $5,300,000,000,000  (I think I have put all the '0's in, but $5.3 trillion anyway !) and many UK banks have financial interest in these companies.

According to financial experts this action will put a further spanner in the global financial world as this will devalue both companies, so stand by for further hardship!

[Martin_1962]

I thought they were burger chains

[philhoward]

I had heard that they were in trouble a while back...obviously its got worse (how could it get better now the US sub-prime market has folded?)

That'll make the spare US Dollars i've got in the drawer worth bugger all, then...

[HolyCount]

If the US economy goes much further down the pan we are all in for a rough (er) ride !!!!

[albitz]

Watch the markets tank tomorrow morning.  

[philhoward]

They'll have gone down the pan before the US even goes to sleep tonight...

[FRE07962128]

They'll have gone down the pan before the US even goes to sleep tonight...

Just thank God it is Sunday in both the USA and Europe, but the Asian markets will certainly start reacting badly if things go there normal way!!

Tomorrow our markets will start to catch up.

[justme]

You thought you had financial problems, and the Northern Rock fiasco was bad, but this is 25 times as bad!!

It has just been announced (at 16:15 GMT) that the US Government have taken control of these American mortgage companies in a package worth £2.7 trillion (apparently twice the UK economy!) to under-right their liabilities as both have been deemed to be unsafe to continue to trade as they currently exist.

Freddie Mac and Fannie Mae both control mortgages worth $5,300,000,000,000  (I think I have put all the '0's in, but $5.3 trillion anyway !) and many UK banks have financial interest in these companies.

According to financial experts this action will put a further spanner in the global financial world as this will devalue both companies, so stand by for further hardship!

It'a been expected for the past 2 weeks, normal to release info on weekend, probabbly already costed into the market.

No sypathies, it is these 2 that are responsible for the packaging of duff mortages, coupled with GBrown accounting methods (derivatives)

[theolodian]

Yeah, this was in the papers in the US on Friday.  Shareholders aren't being completely wiped out.  These 2 were given a huge competitive advantage by the government, without enough oversight.  Their advantage forced everyone else to create the subprime market, because they couldn't directly compete with these 2 for regular mortgages.  Better that their situation is changed.

[Field Marshal Dr. Opti]

You thought you had financial problems, and the Northern Rock fiasco was bad, but this is 25 times as bad!!

It has just been announced (at 16:15 GMT) that the US Government have taken control of these American mortgage companies in a package worth £2.7 trillion (apparently twice the UK economy!) to under-right their liabilities as both have been deemed to be unsafe to continue to trade as they currently exist.

Freddie Mac and Fannie Mae both control mortgages worth $5,300,000,000,000  (I think I have put all the '0's in, but $5.3 trillion anyway !) and many UK banks have financial interest in these companies.

According to financial experts this action will put a further spanner in the global financial world as this will devalue both companies, so stand by for further hardship!

United Kingdom GDP $1.9 trillion (2006) so more or less spot on Lizzie.
They say that when America sneezes Britain catches a cold.
The banking system is in big trouble at the moment,caused mainly by their own irresponsible lending.......and we all know who has to pay for their mistakes....don't we.  :-/ :-/:y

[albitz]

If the markets were expecting it to happen,then it might actually cause the shares to bounce. :-/

[FRE07962128]

If the markets were expecting it to happen,then it might actually cause the shares to bounce. :-/

This afternoon the "experts" are predicting the opposite, but we shall see!

[STMO123]

I find this all rather satisfying. People who couldn't afford big houses suddenly thought they could, and a big car to go with it, and a widescreen tv etc. etc.

It's been coming for a while and anyone with an ounce of common sense should have seen it coming a mile off.

[FRE07962128]

I find this all rather satisfying. People who couldn't afford big houses suddenly thought they could, and a big car to go with it, and a widescreen tv etc. etc.

It's been coming for a while and anyone with an ounce of common sense should have seen it coming a mile off.

Maybe very true STMO, but both the Brown and Bush Governments do not seem to have spotted the obvious, which I suppose says it all!!

[jereboam]

Maybe very true STMO, but both the Brown and Bush Governments do not seem to have spotted the obvious, which I suppose says it all!!

Of course they knew it was coming - they just didn't want to tell us.  

When have either of them ever issued any sort of warning of bad news?  The entire Neocon/New Labour philosophy seems to have been based on "if you ignore it for long enough, it'll probably go away".

Mr. Micawber would would slot into the UK Cabinet by right.  "Something good will surely turn up..." seems to have been the policy for the past few years.

It's a pity that successive Chancellors haven't been able to follow his other famous dictum:
"Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."