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.
If what you’re saying is true, it’s probably a good idea to put in some “stop losses.” I’ve seen the market go into correction mode too many October’s in a row now, and this little ongoing credit/correction issue won’t make matters any better this time around.
Sorry – bad typing…I meant:
They screw up, and they walk away with MILLIONS. I have to go throw up now. Really.
But What you leave out this nifty little detail re: WAMU’s ex –
“Mr. Killinger could walk away with an exit package worth as much as $23.5 million, according to an analysis by James F. Reda & Associates.”
– NYT
They screw up, and they walk away will MILLIONS. I hae to go throw up now.
And the new guy, Fishman – this is interesting, in a local way – Is the guy that sold Independence Savings Bank to Sovereign.
lionballs….none of this so far is bailing out the “idiots who took on loans they couldn’t afford.” This bails out the financial institutions and governments who bought the bonds that were backed by mortgages; necessary to protect the global banking system.
I am not questioning anybody’s judgement in this thread, just trying to ask some questions that help me understand the ramifications of this deal. I asked Dave because I know he is a big boy and can answer a reasonably asked question in a reasonable manner. Dave knows I am not calling him out, but neither in this case am I calling you out WHAT.
Awesome, im glad my taxes are now paying to bail-out / help all these idiots who took on loans they couldnt afford out of greed.
Sweet. I do the right thing, act within my budget and do so conservatively. and get screwed several times over.
fiasco.
but fake what – The What’s initial premise over a year ago was that the financial apocolypse was specifically relevant in that it meant the ulitmate demise of NYC real estate.
let’s do a little historical survey of the past year or so –
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?
Remember that WaMU thing I was talking about? Well the Fannie and Freddie news are shadowing this news.
WaMu replaces CEO, signs agreement with regulator
Shares of nation’s largest thrift slump 16% after OTS agreement
http://tinyurl.com/6y5n3r
“The lender also said it signed an agreement with its main regulator, the Office of Thrift Supervision, which requires it to provide an updated business plan and forecasts for results, asset quality, capital and the performance of business segments.”
A letter of understanding means that you are fucked!
Hey Dave your augments are losing some stream. Even when you minion Wasder questions your judgement, I know you are just blowing your horn. I expect the financials to get murdered this week.
The What (Tick.. Tick.. Tick..)
Someday this war is gonna end…
The market was back to its pre-crash level by July ’89…not really that long of a time in an “investment time horizon”
But things are different now!!!! LOL The market will be a lot more volatile on a day-to-day basis, as it has been. It is already down 20% from the high back in October of last year.
And then there is that annoying little Israel/Iran thing!!!