Comments on: Fannie, Freddie, Heading to Zero http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 22:17:29 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Neil C Denver http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-2/#comment-245016 Neil C Denver Thu, 31 Dec 2009 04:26:00 +0000 http://www.ritholtz.com/blog/?p=47618#comment-245016 "Loan Forgiveness" is the equivalent of "Stealing". It takes the tax receipts of "Responsible" citizens and gives it directly to "Less Responsible" and often "Irresponsible" Citizens. “Loan Forgiveness” is the equivalent of “Stealing”. It takes the tax receipts of “Responsible” citizens and gives it directly to “Less Responsible” and often “Irresponsible” Citizens.

]]> By: Paul Jones http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-2/#comment-244997 Paul Jones Thu, 31 Dec 2009 02:01:24 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244997 I think there would be value in fleshing this FRE+FNM=0 scenario. That won't happen in a vacuum. What does the world look like on that day? I think there would be value in fleshing this FRE+FNM=0 scenario.

That won’t happen in a vacuum.

What does the world look like on that day?

]]> By: nertopia http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-2/#comment-244952 nertopia Wed, 30 Dec 2009 20:01:39 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244952 [Curmudgeon] LOL revolt does not mean taking to the streets... Revolt is as simple as taking action with your money. Move your bank accounts to a local community bank and strike two blows... one against the big banks and one to help support your local community! I think this is within reach of everyone to take this type of action... No matter how old and tired we are! Down with the Potters and up with the George Baileys of the world! [Curmudgeon]

LOL revolt does not mean taking to the streets… Revolt is as simple as taking action with your money. Move your bank accounts to a local community bank and strike two blows… one against the big banks and one to help support your local community! I think this is within reach of everyone to take this type of action… No matter how old and tired we are! Down with the Potters and up with the George Baileys of the world!

]]> By: mknowles http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244951 mknowles Wed, 30 Dec 2009 20:01:10 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244951 “The pay packages the Treasury announced Thursday for the companies’ chief executives consisted exclusively of cash compensation; no shares were offered.” ~~~~~~~~~~~~~~~~~Yes, I think this was $42 Million for 12 executives. “The pay packages the Treasury announced Thursday for the companies’ chief executives consisted exclusively of cash compensation; no shares were offered.”
~~~~~~~~~~~~~~~~~Yes, I think this was $42 Million for 12 executives.

]]> By: StickWithANose » Saved by Zero http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244933 StickWithANose » Saved by Zero Wed, 30 Dec 2009 16:38:39 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244933 [...] to struggling homeowners. As for the companies themselves, Ritholtz makes a straightforward prediction: What did it mean to investors when Freddie & Fannie shares jumped (27% and 21%) and their [...] [...] to struggling homeowners. As for the companies themselves, Ritholtz makes a straightforward prediction: What did it mean to investors when Freddie & Fannie shares jumped (27% and 21%) and their [...]

]]> By: The Curmudgeon http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244921 The Curmudgeon Wed, 30 Dec 2009 15:44:36 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244921 And if you think the bailouts will ever end until the end, you were wrong. Now, GMAC, that other little black hole of government largesse turns out to need yet more money to stay afloat: Dec. 30 (Bloomberg) -- GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter. The size of the assistance is under negotiation, the person said on condition of anonymity because the talks are private. A deal may be reached in days as Detroit-based GMAC incorporates losses from its home-loan businesses, the person said. GMAC received two rounds of government aid totaling $13.5 billion as it struggled with losses at home-mortgage operations, which include Residential Capital LLC, known as ResCap. The primary lender to General Motors Co., its former parent, and Chrysler Group LLC is being helped by profits in auto-lending and is working to sell or restructure the ResCap unit. http://www.bloomberg.com/apps/news?pid=20601087&sid=ap0H4JFsSyTs&pos=4 ~I'm too old and tired to revolt, which is the only way out of this mess that I can see. Is there another place in the world in which to escape where the long arm of The Great Leader can't reach? The Puritans had the New World for their escape from the King's depradations. Where do we go now? And if you think the bailouts will ever end until the end, you were wrong. Now, GMAC, that other little black hole of government largesse turns out to need yet more money to stay afloat:

Dec. 30 (Bloomberg) — GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter.

The size of the assistance is under negotiation, the person said on condition of anonymity because the talks are private. A deal may be reached in days as Detroit-based GMAC incorporates losses from its home-loan businesses, the person said.

GMAC received two rounds of government aid totaling $13.5 billion as it struggled with losses at home-mortgage operations, which include Residential Capital LLC, known as ResCap. The primary lender to General Motors Co., its former parent, and Chrysler Group LLC is being helped by profits in auto-lending and is working to sell or restructure the ResCap unit.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ap0H4JFsSyTs&pos=4

~I’m too old and tired to revolt, which is the only way out of this mess that I can see. Is there another place in the world in which to escape where the long arm of The Great Leader can’t reach? The Puritans had the New World for their escape from the King’s depradations. Where do we go now?

]]> By: nertopia http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244888 nertopia Wed, 30 Dec 2009 11:44:06 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244888 No matter how you slice it... revolt is in the air... Great edited video using clips from "It's A Wonderful Life" Are the Potters of the world running the "Too big to fail" banks? Check out this youtube movie which advises moving your account to a local community bank... Also the lead story at huffington post... http://www.youtube.com/watch?v=Icqrx0OimSs No matter how you slice it… revolt is in the air… Great edited video using clips from “It’s A Wonderful Life”

Are the Potters of the world running the “Too big to fail” banks?

Check out this youtube movie which advises moving your account to a local community bank… Also the lead story at huffington post…

http://www.youtube.com/watch?v=Icqrx0OimSs

]]> By: Robespierre http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244887 Robespierre Wed, 30 Dec 2009 11:32:20 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244887 mathman Says: "Robespierre: where were you when Bush jr took over and created this mess with his secret, unconstitutional, fear-based, unaccountable government?" He is a crook too but since he is out of office very little can be done at this time. Having said that, I'm of the opinion that the US will become more and more like a banana republic where most government elected officials are up for sale. A country can only be functional if its citizens believe that justice applies more or less equally to all and if they believe that they have legal recourse against influential groups. mathman Says:

“Robespierre: where were you when Bush jr took over and created this mess with his secret, unconstitutional, fear-based, unaccountable government?”

He is a crook too but since he is out of office very little can be done at this time. Having said that, I’m of the opinion that the US will become more and more like a banana republic where most government elected officials are up for sale. A country can only be functional if its citizens believe that justice applies more or less equally to all and if they believe that they have legal recourse against influential groups.

]]> By: mathman http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244884 mathman Wed, 30 Dec 2009 10:57:33 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244884 Robespierre: where were you when Bush jr took over and created this mess with his secret, unconstitutional, fear-based, unaccountable government? Robespierre: where were you when Bush jr took over and created this mess with his secret, unconstitutional, fear-based, unaccountable government?

]]> By: Robespierre http://www.ritholtz.com/blog/2009/12/fannie-freddie-heading-to-zero/comment-page-1/#comment-244883 Robespierre Wed, 30 Dec 2009 10:03:27 +0000 http://www.ritholtz.com/blog/?p=47618#comment-244883 BR: I am against the bailouts, but how do you figure illegal? Its TARP money . . . If the blank check was up to the money allocated to TARP then it would not be illegal. That is not the case since (for what I read) they put no ceiling to what they would give to the GSEs. BR: I am against the bailouts, but how do you figure illegal? Its TARP money . . .

If the blank check was up to the money allocated to TARP then it would not be illegal. That is not the case since (for what I read) they put no ceiling to what they would give to the GSEs.

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