Posts filed under “Video”

Pimco’s Gross: Fannie, Freddie Mortgages ‘Excellent’

Let’s call this a bit of counter programming to all of our negative coverage of Fannie Mae (FNM) and Freddie Mac (FRE):

Bill Gross, who manages the world’s biggest bond fund, said it’s not possible for government sponsored mortgage-finance companies Fannie Mae and Freddie Mac to raise capital without the Treasury Department’s support.

"Let’s be blunt: to the extent the Treasury suggests they’ll never have to use their authority, that’s a sham,” said Gross of Pacific Investment Management Co. "It’s fallacious to suggest that the agencies could issue capital, preferred stock, without the co-participation of the Treasury. I don’t think that’s possible.”

Freddie Mac said on July 18 that it intends to proceed with a $5.5 billion capital-raising plan it announced in May that will include both common and preferred securities. Pimco wouldn’t buy the companies’ stock without the Treasury’s involvement, Gross said, in a Bloomberg Television interview from the firm’s headquarters in Newport Beach, California.

Treasury Secretary Henry Paulson is pushing Congress to authorize the Treasury to purchase equity stakes in Fannie Mae and Freddie Mac and expand government-backed credit lines to them amid concern that they don’t have enough capital to weather the worst housing slump since the Great Depression. Freddie Mac shares have tumbled 74 percent this year and Fannie Mae has dropped 65 percent. The companies make money by guaranteeing mortgage-backed securities they create out of loans bought from lenders and sell to investors worldwide.

Mortgage-backed bonds issued by Fannie Mae and Freddie Mac are “an excellent buy” compared with debt of the agencies, Gross said.

Bill Gross, who manages the world’s biggest bond fund at Pacific
Investment Management Co., talks about Treasury Secretary Henry
Paulson’s plan to rescue Fannie Mae and Freddie Mac, the outlook for
U.S. home prices, Federal Reserve monetary policy and the bond market.

click for video
Gross_on_fannie

00:00 Passage of GSE rescue plan is "critical."
01:03 Recapitalization of Fannie and Freddie
01:49 Fannie and Freddie mortgages are "excellent."
02:55 Government’s GSE model "has to be amended."
03:54 Outlook for the U.S. housing market, prices
04:58 Capital-raising efforts by Fannie and Freddie
06:00 Rate hikes by Fed would be "wrong approach."
07:17 Treasuries and TIPS; measures of inflation
09:23 Relationship of credit turmoil, home prices
10:36 Investment in bank debt; U.S. dollar value
12:53 "Inappropriately" valued U.S. Treasuries

Source:
Pimco’s Gross Says Fannie, Freddie Need Treasury
Kathleen Hays and Sandra Hernandez
Bloomberg, July 21 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aeycKikYswvw

Category: Bailouts, Credit, Video

Video: It’s the Stupid Economy

I saw this last week and nearly fell out of my chair.

Last week, President Bush scheduled a Press conference for 10:20am — the exact same time Bernake’s Congressional testimony

Coincidence? Apparently not:




Source:
It’s the Stupid Economy
Daily Show, July 16, 2008
http://www.thedailyshow.com/video/index.jhtml?videoId=176740&title=headlines-its-the-stupid-economy

~~~

Category: Economy, Politics, Video

Economic Witch Hunt

Interesting discussion:


"The political establishment is embracing a time-honored response to the nation’s economic turmoil. It’s going on a witch hunt.Politicians of all stripes worry that improper trading by short sellers has contributed to turmoil in the stock markets. And "excessive" oil traders have replaced oil-company executives — themselves twice keelhauled by congressional committees this year — as the bogeymen behind the run-up in gas prices.  For Washington veterans, the sharpened attacks are the incarnation of a standard political trope, one found especially in election years"



Source:
Economic Woes Get a Fix: Witch Hunt
GREG HITT
WSJ, July 19, 2008; Page A3
http://online.wsj.com/article/SB121642556479566791.html

Category: Markets, Taxes and Policy, Video

Moral Hazard & Risky Precedents

Excellent discussion from PBS News Hour, on Moral Hazard:
click for video
>
Pbs_moral_hazard

>

Sources:
Bailout of Mortgage Firms Could Set Risky Precedent  (Transcript)
July 18, 2008   
http://www.pbs.org/newshour/bb/business/july-dec08/bailouthazard_07-18.html

Audio Recording
http://www-tc.pbs.org/newshour/rss/media/2008/07/18/20080718_risky28.mp3

~~~

Category: Bailouts, Credit, Video

Bailout Nation: Treasury, SEC on Bailouts

I did three segments Tuesday on Yahoo Tech Ticker at the Nasdaq: 

Here is the last, on Bailouts, Fannie & Freddie:

Click for video



Source:
Bailout Nation: Paulson, Cox, Shorts Weigh in On Fannie, Freddie
Aaron Task
Yahoo Tech Ticker, Jul 15, 2008 07:00am EDT
http://finance.yahoo.com/tech-ticker/article/39342/Bailout-Nation-Paulson-Cox-Shorts-Weigh-in-On-Fannie-Freddie?tickers=FNM,FRE,GM,TM,%5EDJI,%5ESPX,XLF

Category: Bailout Nation, Books, Credit, Federal Reserve, Taxes and Policy, Video

Joe Nocera: The Shorts Ate My Company

I’ve been meaning to mention this — and Paul reminded me this morn — but NYT columnist Joe Nocera is now blogging.

click for video
Joe_nocera

>

Source:
Joe Nocera Blog
http://executivesuite.blogs.nytimes.com/

Category: Corporate Management, Video

The Three-Headed Monster

I did three segments Tuesday on Yahoo Tech Ticker at the Nasdaq: 

Here is the second piece, on Inflation, the weak economy and the Credit Crisis:

>

Source:
Ben Bernanke vs. the Three-Headed Monster   
Aaron Task
Yahoo Tech Ticker, Jul 15, 2008 07:00am EDT
http://finance.yahoo.com/tech-ticker/article/39310/Ben-Bernanke-vs.-the-Three-Headed-Monster;_ylt=Agy5nIydkMETYzvP1Evig4lk7ot4?tickers=%5EDJI,%5EGSPC,%5EIXIC,SPY,DIA

Category: Credit, Economy, Federal Reserve, Inflation, Video

William Ackman on Fannie & Freddie

Unveiling his plans to save the lenders, with William Ackman, Pershing Square Capital Management managing partner

click for video
Ackman_on_fannie

"This is a conservatorship, which is a good thing, because you can accomplish it more efficiently," Ackman said.

Part II
click and scroll down
Ackman_ii

Sources:
Ackman: A Plan to Save Fannie & Freddie
CNBC.com | 15 Jul 2008 | 10:30 AM
http://www.cnbc.com//id/25685589

Slideshow
http://www.cnbc.com/id/25688918/site/14081545/

Category: Credit, Video

Wild Times on Wall Street

I did three segments Tuesday on Yahoo Tech Ticker at the Nasdaq: 

Here is the first, on closing shorts and getting a bounce:

Click for video

We ran out of time, but I was going to discuss the infrastructure plays also . . .

>

Source:
Wild Times on Wall Street: What Now for Investors?   
Aaron Task
Yahoo Tech Ticker, Jul 15, 2008 07:00am EDT
http://finance.yahoo.com/tech-ticker/article/39407/Wild-Times-on-Wall-Street-What-Now-for-Investors

Category: Contrary Indicators, Markets, Trading, Video

Jim Rogers: Fannie Plan a ‘Disaster’

"I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” Rogers, 65, said in an interview from Singapore. “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.”

The chairman of Rogers Holdings, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, also said the commodities bull market has a "long way to go” and advised buying agricultural commodities.

 

wow!

click for video

Jim_rogers

The U.S. Treasury Department’s plan to shore up Fannie Mae and Freddie Mac is an "unmitigated disaster” and the largest U.S. mortgage lenders are "basically insolvent,” according to investor Jim Rogers.

Taxpayers will be saddled with debt if Congress approves U.S. Treasury Secretary Henry Paulson’s request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac, Rogers said in a Bloomberg Television interview. Rogers is betting that Fannie Mae shares will keep tumbling…

"These companies were going to go bankrupt if they hadn’t stepped in to do something, and they should’ve gone bankrupt with all of the mistakes they’ve made,” Rogers said. “What’s going to happen when you Band-Aid and put some Band-Aids on it for another year or two or three? What’s going to happen three years from now when the situation’s much, much, much worse?” . . .

The U.S. economy is in a recession, possibly the worst since World War II, Rogers said.

"They’re ruining what has been one of the greatest economies in the world,” Rogers said. Bernanke and Paulson "are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.”

Source:
Fannie Plan a `Disaster’ to Rogers; Goldman Says Sell
Carol Massar and Eric Martin
Bloomberg, July 14 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7hS5BuYqeR8&

Don’t Bail Out Fannie, Freddie: Jim Rogers   
CNBC.com | 15 Jul 2008 | 05:02 AM ET
http://www.cnbc.com//id/25684069

Category: Credit, Economy, Video