Government Rescues Fannie and Freddie
The federal government will take over Fannie Mae and Freddie Mac, our largest and most troubled mortgage finance companies, with an estimated taxpayer price tag of $25 billion (one source told the New York Times that the number was a modest guestimate, though). In one of the county’s most expensive bailouts, the government can put…
The federal government will take over Fannie Mae and Freddie Mac, our largest and most troubled mortgage finance companies, with an estimated taxpayer price tag of $25 billion (one source told the New York Times that the number was a modest guestimate, though). In one of the county’s most expensive bailouts, the government can put up $100 billion for each company should they need cash — they handle about half of the country’s mortgages — and will encourage them to shrink their holdings; the Treasury can buy the two companies outright for a small pricetag, and is already changing the management team. The Fed sees the buyout as the silver bullet for the housing crisis, and already foreign markets have rallied since the announcement. Will it work, do you think?
In Rescue, U.S. Takes Over Mortgage Finance Titans [NY Times]
Fannie Mae. Photo by NCinDC.
Franklin Raines walked out of Fannie Mae with 40 million, even after the Feds slapped him on the wrist. He’s probably chuckling to himself on some golf course right now.
Is Citi next on the bailout block?
I’ve been on here too long. I was just reading something about a company’s assets and I read the word as asshats!!!
This should take some of the wind (or hot air) out of What’s sails:
Carl McNally Pickens (born March 23, 1970 in Murphy, North Carolina) is a former American football wide receiver in the NFL who played for the Cincinnati Bengals, Dallas Cowboys and Tennessee Titans.
Before his NFL career, Pickens played college football for the University of Tennessee from 1989-1991, where he caught 109 passes for 1,875 yards and 13 touchdowns, and made the College Football All-America Team as a senior.
In 1992 Pickens was named The NFL Offensive Rookie of the Year by the Associated Press. In 1995, he set a Bengals record for receptions in a single season with 99, and touchdown catches with 17. Pickens later surpassed his own record by recording 100 receptions in 1996. In his 9 NFL seasons, Pickens recorded 540 receptions for 7,129 yards and 63 touchdowns, while also gaining another 307 yards and 1 touchdown on punt returns. As of 2007, his 530 receptions are the 2nd most (Chad Johnson) in franchise history, while his 63 touchdown catches are a franchise record.
He is also known for the “Carl Pickens Clause”. This was a loyalty clause that the Bengals created and added to Pickens’ contract which would cause him to forfeit all or some of his signing bonus if he insulted the organization in public. This clause has since been used in contracts with other players.
Common Nicknames
Carl ‘Easy’ Pickens
Carl ‘Slim’ Pickens
[edit] External links
Dave: I think the what has a crush on you.
Hey What, who is Carl Pickens?????????? Typical What
I’m waiting to hear some more shit fly about the severance packages of the CEOs…one of them got $9 MM and the other got $14 MM!!!!!
“I know he is a big boy and can answer a reasonably asked question in a reasonable manner. ”
BTW Wasder, Dave is not a big boy. Bill Gross, Warren Buffet, Carl Pickens and the Bush dynasty are Big boys. Dave is the little Assfuck who carry out their deeds…
The What
Someday this war is gonna end…
Wasder asked: “Dave–an October 87 type event would still be pretty dramatically bad no?”
DIBS answered: “The market was back to its pre-crash level by July ’89…not really that long of a time in an “investment time horizon”
Now I’m gonna put on my ‘What’ hat.
DIBS forgot to mention that while the market recovered, can we discuss what happened to NYC Real Estate as a direct cause of the Crash of ’87? All the investment bankers who worked on portfolio insurance and other arcane derivatives got fired! Therefore all the condos that got built in the last boom (late ’80s) took a bath. It took until the mid 1990s for RE to recover.
Same thing is happening/will happen over this. All the bankers doing securitization, CDOs, credit swaps, and all this other arcane sh*t are history! Very little of Wall Street employment these days is based on stock and bond trading. They make money on the wacky sh*t that blows up in your face!
Just like 1989-1995, when all these high paid folks were out of work and therefore not interested in buying new condos, so the same thing is already starting to happen. There will be fewer buyers. Compounding this, condo supply is still soaring as more and more projects are coming on the market. Less demand + more supply equals big price chops!
Unlike Da What, I don’t believe this predicts a major crisis or depression. It just means you’ll be taking a 20-30% haircut on your recently bought real estate investment. But, if you didn’t put 3% down, and plan to stay for the long term, you’ll be fine over the long term. Manhattan Real Estate (and I think by now we can extend this to Brownstone Brooklyn)has been an excellent long term investment, and always will be.
Shall we discuss what the bear market of 1973-1975 did to Manhattan real estate? No? So why will this bear market be different?
“1) collapse of countrywide
2) collapse of bear stearns
3) collapse of indymac
4) collapse of fannie and freddie
5) global equity markets pretty much all in bear territory
6) biggest US nationwide housing slump since great depression
BUT
7) NYC real estate prices have barely budged
What had happen?”
Nothing……
I’m going out to enjoy my day. I realize that I have no control what happens and I will not worry about it. If you believe that the actions of our Government was just on saving Fannie and Freddie then go out and buy something. There is no problems, life will go on….
The What
Someday this war is gonna end…