extra big ass recession: now with more bank failures [Politics/Religion]

The U.S. housing slump has triggered more than $500 billion of credit market losses for banks globally and led to the collapse and sale of Bear Stearns Cos., the fifth-largest U.S. securities firm. Rogoff, 55, said the government should nationalize Fannie Mae and Freddie Mac, the nation's biggest mortgage-finance companies, which have lost more than 80 percent of market value this year.

Freddie Mac and Fannie Mae ``should have been closed down 10 years ago,'' he said. ``They need to be nationalized, the equity holders should lose all their money. Probably we need to guarantee the bonds, simply because the U.S. has led everyone into believing they would guarantee the bonds.''

Last month, President George W. Bush signed into law a housing bill that provides Treasury Secretary Henry Paulson the power to make equity purchases in Fannie Mae and Freddie Mac. Paulson asked for the authority July 13 after the shares of the firms, which own or guarantee almost half of the $12 trillion of U.S. mortgages, slid to the lowest level in more than 17 years.

Who are the larger equity holders in Fannie Mae and Freddie Mac?

Is it just me, or does that sound hot?

You'd think that at some point the need for new homes should diminish anyway without all these negative forces. There are only so many people in the country let alone people that can afford to own a home. The builders brought this ruin on themselves by overbuilding.

If the single-family home market wouldn't have gotten *fudge*ed, then surely the multi-unit rental market would have. Either way, somebody was due for a *goshdarn*.

Right about what? All you do is post links to stories written by other people.