<%3Fxml version="1.0" encoding="UTF-8"%3F> Viagra online canadian pharmacy » Approved Canadian Pharmacy - Levitra, Cialis, Viagra Online! to let the government take over Fannie Mae and Freddie Mac completely since the passed in July gave him the power.  This is actually very scary news for many reasons.  Here are some of my thoughts.

First of all,  would be yet since the housing meltdown is not over.  Fannie and Freddie hold over $5 trillion dollars in mortgage loans, and own about as of August 2008.  Since foreclosure numbers are still stacking up the amount of losses Fannie and Freddie will sustain is still going up.  Once the government officially takes over these enterprises taxpayers would be paying for all the loan guarantees and costs to dispose of these foreclosed properties.  Even if the housing market does not worsen, I think it is safe to say that the Treasury will stand to lose billions if they take over Fannie and Freddie

The situation right now is that if the government does not take over Fannie and Freddie then they may not stay open for very long since investors have lost quite a bit of confidence in the mortgaged backed securities spewed by these companies.  The stock prices of these companies have plunged and they’re drowning in billions of losses.  Without Fannie and Freddie’s guarantees on loans, it would be harder for everyone to get loans and home sales will be even slower and that will simply bring about more losses amongst the financial industry.  It is almost like  the government almost has no choice but to step in and stabilize the mortgage and credit market.

Interestingly enough, agree that Fannie and Freddie should not be bailed out since they are supposedly private entities,  but these two government sponsored enterprises have so much influence  and so many loans now that just letting them fail could have a huge impact on the real estate market.    I think it is really bizarre that these two companies were allowed to operate in such a way that they are government sponsored, and yet not carefully regulated to take on sensible risks.  Where was the line drawn?  Now that the crap has hit the fan, taxpayers have to pick up the pieces?

So on one hand, I agree wholeheartedly that Fannie and Freddie need to be restructured by the government for the good of the economy, but will they do it correctly this time?  If the current lending and fraud prevention practices continue, Fannie and Freddie will be nothing but endless money pits where taxpayer money bleeds into oblivion.  If management becomes good and these enterprises become profitable again, where will the money go?  Will taxpayers see any return on the good fortunes of these companies as their former shareholders once did?  Right now, there are so many questions and so little answers, and the big unknown future of Fannie and Freddie is rather frightening.

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]]> http://baglady.dreamhosters.com/2008/09/07/the-big-scary-black-hole-of-fannie-and-freddie/feed/ 1 Viagra online canadian pharmacy » Approved Canadian Pharmacy - Levitra, Cialis, Viagra Online! http://baglady.dreamhosters.com/2008/07/12/another-one-bites-the-dust-how-bad-is-the-indymac-failure/ http://baglady.dreamhosters.com/2008/07/12/another-one-bites-the-dust-how-bad-is-the-indymac-failure/#comments Sat, 12 Jul 2008 17:01:57 +0000 admin http://baglady.dreamhosters.com/2008/07/12/another-one-bites-the-dust-how-bad-is-the-indymac-failure/ Apparently the second largest bank failure in American history was just announced yesterday.  IndyMac Bank has been closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named the Conservator.  IndyMac Bank’s assets has been transferred to  a new FDIC insured federal entity called IndyMac Federal Bank and the FDIC has control over its operations.  This is the fifth bank failure in 2008, but it is by far the largest since IndyMac has over $32 billion in holdings. The FDIC will probably try to get a buyer for IndyMac’s assets while keeping it in operations for a little while. It is estimated that it would cost FDIC $4 to $8 billion to dispose of IndyMac.

So is it time to panic?  Well, lets take a look at history.  The last time there was a housing bubble was in the late 80s.  After that the bubble promptly popped, many many banks failed.  According to the FDIC there were 127 bank failures in 1991 and the total assets held by these dead banks was around $63 billion. Leading up to 1991 there were 207 failures in 1989, and 169 failures in 1990, but the total assets in those years were only $29.2 billion and $15.7 billion respectively.  The horror of those years is now known as the savings and loans crisis. After this crisis, the FDIC significantly raised the insurance premiums on deposits and new banking bills were created that is supposed to stop insolvent banks from operating.

If you adjust for inflation, $63 billion in 1991 is equivalent to around $100 billion today.  The five bank failures of this year adds up to more than $34 billion in assets. So I think the worst is yet to come and all of us will experience some pain.   It’s going to get worse before it gets better, but there is very little we can do to stop the insolvent banks from failing at this point.  The good news is that the economy recovered the last time around and if you bought an index fund in 1991 and just sat on it you would be quite a bit  ahead today.  So once again I reiterate, if you are an investor then you shouldn’t panic and just .

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Viagra online canadian pharmacy » Approved Canadian Pharmacy - Levitra, Cialis, Viagra Online! http://baglady.dreamhosters.com/2008/04/15/is-inflation-eating-away-your-savings/ http://baglady.dreamhosters.com/2008/04/15/is-inflation-eating-away-your-savings/#comments Tue, 15 Apr 2008 23:00:29 +0000 admin http://baglady.dreamhosters.com/2008/04/15/is-inflation-eating-away-your-savings/ According to various measurements, the price of food and energy have increased anywhere from 6% to 9% in the past year. Meanwhile the interest rate on savings accounts have been slashed dramatically to less than 2%. In this environment, it is easy for a saver to feel like a fool, but there are ways you can mitigate the effects of inflation and still save for the future.

viagra online canadian pharmacy- Obviously, you can’t stockpile fresh food for very long, but you can certainly keep quite a bit of dried, canned, and freezable goods.  If you have room for storage, things like pasta or wine can be kept for a pretty long time. Sales are even better for stockpiling. For example, in my story about I got quite a bit of pasta roni,canned tomatoes, and toothpaste for very little money. Now I wish I bought more because we went through the food pretty quickly. Stockpiling food is a form of non-financial investment that could pay off better than stocks as long as you do eat the food before it goes bad.
viagra online canadian pharmacy – I have a few stock holdings that have been giving out very high dividends. The ones I own are mostly natural resource and mineral stocks. I’m not an expert in stock picking, though, so the percentage of my individual stock holding is about 6% of my entire portfolio. There are a lot of ways to pick your dividend stocks and a simple and popular method is In the current market, you have to be careful with the stocks that give too high of an yield because some of them may be dying financial services. As always, do your research before you invest.
viagra online canadian pharmacy – If buying a house makes sense in your area it may be a good hedge against inflation. I am a staunch bubble sitter here in because home prices are still way too high to justify buying a home. If inflation actually drove rent to within 10% of mortgage prices, I would consider buying, but the situation I am facing now is that home prices are falling but rent is still 1/3 to 1/2 the price of a mortgage on a comparable unit. However, if you can afford a home and in your area it is cheaper to buy than rent, it makes sense to buy a house to protect yourself against further rent hikes. As long as you get a fixed rate mortgage, your payments will stay the same throughout the term of a home loan.

I am sure there are many other ways people protect their savings from inflation. I have read that many people invest in I-Bonds or TIPS, which have variable rates related to inflation. I actually own some I-Bonds because they are state tax free. The problem is that these treasury bonds fluctuate with the core inflation rate, which doesn’t include food and energy. The result is that the return is lower than the real inflation, but they are generally better than dumping all your money in the bank or in a money market. The key is that you can manage your money well and diminish the effect of inflation when you put a little time into it. What have you been doing to fight inflation?


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Viagra online canadian pharmacy » Approved Canadian Pharmacy - Levitra, Cialis, Viagra Online! http://baglady.dreamhosters.com/2008/04/07/let-the-olympics-torch-burn-bright/ http://baglady.dreamhosters.com/2008/04/07/let-the-olympics-torch-burn-bright/#comments Tue, 08 Apr 2008 02:18:28 +0000 admin http://baglady.dreamhosters.com/2008/04/07/let-the-olympics-torch-burn-bright/ This morning as I drove to work I heard   a barrage of news about protests against the Olympics in China. Here are some of my thoughts about the matter since a few friends have talked to me about it. I really think that people should leave the event alone and stop these ridiculous protests, and here are my reasons.

First of all, the Olympics is an economically draining event and not that many countries could afford it. The 2004 Olympics in Athens put Greece in so much debt that they are still trying to pay it off. When someone in San Francisco’s City Hall threw around the idea of hosting the Olympics the citizens actually said “Hell no”. Basically, no matter where you are from, you should be glad that the Olympics is not in your country for the sake of your money. In the case of China, the 2008 Olympics is really a special event for every single Chinese citizen. It is the first time China is hosting, and it is a symbol that China is now a great economic force that could compete with the United States and other developed countries. The country of 1.3 billion citizens has been preparing for the event for over eight years, and it is unfair to the Chinese people for the rest of the world to be so antagonistic to this event.

Second, the Olympics is supposed to be a time for the world to lay down their differences and compete in a civil and friendly matter. The ancient Greeks created the games as a break from war. When you throw war back into these games it never ends well. For example, back in 1972 a terrorist group kidnapped the Israeli Olympic team and murdered them. Then the Mossad (Israeli Intelligence) killed the people they believe were responsible. Violence just begets more violence, and I am very disheartened to see that people are injecting hate into the Olympics.

Third, protesting against and boycotting the Olympics is extremely unfair to the athletes. The athletes who compete in the Olympics train for years to get where they are. They want to make their own countries proud, and they want to accomplish their dreams. I am sure that they are also disappointed and perhaps even afraid to compete in the games with so much opposition. I would hate to see an athlete being spat on like a Vietnam War veteran because they competed in the games in China. Once again I reiterate that the Olympics should be about peace, and not war.

I don’t deny that some rights taken for granted in America do not exist in China, but there is no perfect government. If you look on the record of any reasonable large and powerful nation you will find corruption,abuse,and other atrocities. As to the violence in Tibet, here is how I see it. The Europeans who colonized America took away the United States from the Native Americans just like China annexed Tibet. Actually the situation in America is even worse because many Native Americans are still segregated on reservations while Tibetans are free to live in their own homeland. Just like Native Americans in the United States, the Tibetans receive various benefits for being ethnic minorities in China. Now if a bunch of Native Americans took up torches and destroyed homes and stores belonging to other races in the name of freeing their nation, do you think that the current United States government will not react with force?

Anyway, I am trying to say that China’s political flaws and racial tensions really shouldn’t be the reason for people to douse the Olympic flame. I think it’s despicable for people to advance their own political agendas by knocking down this wonderful event meant to foster world harmony. Supposedly there will be a giant protest in San Francisco when the torch arrives on Wednesday, and I hope it will not get out of hand. I really wonder if those protesters have been to China, and if they know what the games mean to a Chinese citizen; I wonder if they know the original purpose of the Olympics, or if they are just following the herd. I sincerely hope the Olympics torch will burn brightly in San Francisco, and the games in August will be a huge success.

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Viagra online canadian pharmacy » Approved Canadian Pharmacy - Levitra, Cialis, Viagra Online! http://baglady.dreamhosters.com/2008/03/27/why-would-anyone-want-to-be-president-of-america-now/ http://baglady.dreamhosters.com/2008/03/27/why-would-anyone-want-to-be-president-of-america-now/#comments Thu, 27 Mar 2008 21:11:38 +0000 admin http://baglady.dreamhosters.com/2008/03/27/why-would-anyone-want-to-be-president-of-america-now/ I don’t write much about politics, because I absolutely loathe it. I am also not an American citizen so my opinion doesn’t count in this country anyway. Nevertheless, I have no idea why anyone would want to be the next president of America right now.  With everything that is happening, it truly is a horrible time to be president.  Here are some of my predictions of what would happen regardless of which candidate gets elected.

viagra online canadian pharmacy – How is it possible that America could wage an extremely expensive war for five years and cut taxes?  I’m not sure how the government does its accounting, but it did borrow a crapload of money from the rest of the world to fund this multi-trillion dollar war.  The war is funded on debt, and Americans have not really started paying for it. The interest on the debt will pile on, and we will be paying for it for years to come.  Taxes will increase either because the Bush tax cuts expire in 2010 or because the next president will just have no choice but to raise taxes and pay down some of that debt.

viagra online canadian pharmacy- This is really anecdotal, but yesterday I walked around downtown San Mateo and at least three shops and restaurants were out of business.  One restaurant just said, “LOST OUR LEASE” on the door. The recession is really just beginning, and usually in an election year the government does whatever it could to prop up the stock market, but once the next president gets up to serve it will come crashing down.

viagra online canadian pharmacy – Of course the NAR is calling a bottom now that housing sales went up a measly 2.9% nationally in February. They are not highlighting the fact that this February was a whole day longer than last year, which means that the month was 3.5% longer.  Prices were down 8.2% and housing sales still declined in the west. I am not sure if the bottom will come in the next presidential term, but the housing market will definitely decline a bit more.

viagra online canadian pharmacy – It is unfortunate, but I don’t think the war in Iraq will be over as soon as the democrats promise.  The Americans are just too entrenched in that country to suddenly pull out.

Whoever the next president is, God help him/her.  I really think that a major problem with American politics is that power changes hands every four years so that every president tend to do short term fixes and make his/her four years look as glorious as possible and leave the seething crapbag to the next person in line.   The entire system fits with the American culture of “I want it right here right now”, and that results in policies that borrow against the future. For example, billions of dollars have been taken out of Social Security in the last couple decades to pay for operating expenses. Unfortunately, I don’t think this prevailing attitude and policy of sealing mortal wounds with bandages would change with new leadership.

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