The Blame Game: Freddie and Fannie Mac and why Blu-Ray is Hurt

[Incog]

I premise this discussion with the fact that today I lost a lot of money I had invested in Tech Stocks. A lot of this money was in key companies who support and develop Blu-Ray Tech. New Tech relies on loans, and investments to get started. Capitol is hard to raise when its a brand new and unproven tech. These companies, like many are fealing the hurt. I'm pissed so I thought I'd post. Anyway, Let the discussion (Flames) begin!

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So, You would have to be dead or in a coma to not hear these words lately: "Bailout", "Fannie/Freddie" "Economic Crisis", "Predatory Lending",

I know there is plenty of blame being tossed around. Blame the White House, Blame to the Democrats in Congress, Blame to the Republicans,

Blame the regulators. Blame the "Predatory lenders". Blame Wall Street. Blame those who get loans that shouldn't or can't afford them.

Now, I'm not saying its anyone’s fault in particular. I think, honestly, EVERYONE, yes EVERYONE is at fault a little for this mess. Everyone listed above

should share the blame. However, that said. I found this video on YouTube which is a collection of C-SPAN comments made during a 2004 hearing on Freddie Mac and Fannie May.

At issue is the head of Freddie Mac, Frank Raines and the OFHEO chairman who overseas Freddie Mac and Fannie May. This OFHEO released a report stating serious

problems at Freddie Mac and Fannie May.


The comments highlighted paint a ...... interesting picture. It is 8 Min long video, and the very last clip which is only 15 seconds long was taken only a week ago on ABC News.


Watch and enjoy, or at least shake your head in disgust.



http://www.youtube.com/watch?v=_MGT_...eature=related


FYI:
On December 21, 2004 Raines accepted what he called "early retirement" from his position as CEO while
U.S. Securities and Exchange Commission investigators continued to investigate alleged accounting irregularities.
He is accused by The Office of Federal Housing Enterprise Oversight (OFHEO), the regulating body of Fannie Mae,
of abetting widespread accounting errors, which included the shifting of losses so senior executives, such as
himself, could earn large bonuses
In 2006, the OFHEO announced a suit against Raines in order to recover some or all of the $50 million in payments
made to Raines based on the overstated earnings initially estimated to be $9 billion but have been announced
as 6.3 billion.

[My_Two_Cents]

Thread will now close in 3....2.....1.....

BTW, I'm scared to death to look at my 401K balances after today...seriously!

[BoschRock]

Originally Posted by Ricshoe

Thread will now close in 3....2.....1.....

BTW, I'm scared to death to look at my 401K balances after today...seriously!

I hope my $28 is still secure at my credit union (sometimes it pays to be a poor college student)!

[MotionBlurr]

I think the government should give everyone $1000. If everyone spends it on something maybe that will get the economy goin....wait I think we did that already. Sorry.

[mgonzo2u]

Originally Posted by BoschRock

I hope my $28 is still secure at my credit union (sometimes it pays to be a poor college student)!

Partially true.

There may not be a better time to be young and without assets with a roof over your head to call home.

If you start investing at the beginning of the new year, the market is sure to do nothing but rise for a long while for you and those like you that start investing while young.

[U4K61]

In January, all I worried about was a quick death for DUD. How things have changed.

[BoschRock]

Originally Posted by MotionBlurr

I think the government should give everyone $1000. If everyone spends it on something maybe that will get the economy goin....wait I think we did that already. Sorry.

Yes, they should. That would complete my TV fund.

Originally Posted by mgonzo2u

Partially true.

There may not be a better time to be young and without assets with a roof over your head to call home.

If you start investing at the beginning of the new year, the market is sure to do nothing but rise for a long while for you and those like you that start investing while young.

That's a very smart observation.

[jadedeath]

Not to nitpick at all...

But the majority of the companies that invested in Blu-Ray are foreign companies. For the most part {with the exception of studios, which at last check are doing fine} the US and Canada are just selling the equipment the rights and production are taking places overseas.

Logan

[Grant Matrix]

I'm really sorry that I can't feel bad for the OP. A lot of people are whining and complaing about losing money on stocks, but HELLO, the stock market is gambling, and high stakes gambling at that. If you are not prepared for the risk then you shouldn't chase the rewards. Yeah it really sucks that the economy is going to hell, and it is a shame that a lot of averge joes are losing money, but risk is risk.

[camper]

We should all jump out of buildings now, because the 777 points that got lost yesterday will N-E-V-E-R recover.

And for the record, single stocks is the WORST investment a person can make. People with decades of experience, more degrees and pedigrees than you can count get it wrong regularly. It's the equivalent of betting on the horses; yeah you might be at figuring out the odds and knowing all the statistics, but winning is not guaranteed.

camper

[My_Two_Cents]

Originally Posted by camper

We should all jump out of buildings now, because the 777 points that got lost yesterday will N-E-V-E-R recover.

Uh, stock market history say different. Yeah, we had a major loss yesterday, and it will probably continue to some degree, but in the long run the market will recover. Stock mutual funds have been and still are the best long-term investments one can make.

[camper]

Originally Posted by Ricshoe

Uh, stock market history say different. Yeah, we had a major loss yesterday, and it will probably continue to some degree, but in the long run the market will recover. Stock mutual funds have been and still are the best long-term investments one can make.

I agree, I was being sarcastic Now is the perfect time to buy. I just wish that I had more money to invest, but sadly I got caught up in the debt death spiral. So now I've got to finish working with gazelle-like intensity to get it gone for good.

camper

[My_Two_Cents]

Originally Posted by camper

I agree, I was being sarcastic Now is the perfect time to buy. I just wish that I had more money to invest, but sadly I got caught up in the debt death spiral. So now I've got to finish working with gazelle-like intensity to get it gone for good.

camper

Well that's what is for!