~~~
Source:
Backdoor Bank Bailout? Fannie And Freddie May be “Losing Money as a Matter of Policy”
Peter Gorenstein
Yahoo Tech Ticker May 12, 2010
http://finance.yahoo.com/tech-ticker/backdoor-bank-bailout-fannie-and-freddie-may-be-%22losing-money-as-a-matter-of-policy%22-483857.html
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
read more »
Tweet
Facebook
Reddit
Digg this!
May 12th, 2010 at 4:51 pm
[...] Disclosures « Fannie And Freddie And the Backdoor Bank Bailout [...]
May 12th, 2010 at 6:09 pm
F&F has 96% of the housing market and could easily stop losing money if they jacked up rates by 200 bp, but that would kill the recovery and cost a heck of a lot more money out of other government pockets than the loses they are reporting right now. Now if they had been a private entity they would not have hesitated with doing that (and to hell with the economy and the country), but since they are owned by the government they are doing the right thing. But saving the banks (by keeping house prices from crashing) is just collateral damage. The real goal is saving the economy, and its been working pretty well – stopping the free fall.
May 13th, 2010 at 10:07 am
I try to distinguish between what came before they were placed into receivership and what came after.