Fannie Mae seeks $8.4B in aid after 1Q loss

[KMAN]

Must be nice to have an endless supply of tax payer money...


My Way News - Fannie Mae seeks $8.4B in aid after 1Q loss

 

[Care4all]

is fannie mae and freddie mac STILL buying up the bad MBS's of Goldman, and bank of America and the other biggies? If so, WHY, when they know they are toxic? Is this part of the big bank bail outs, making fannie and freddie buy up these toxic assets of others? I don't get what is going on here?

 

[Conspiracist]

is fannie mae and freddie mac STILL buying up the bad MBS's of Goldman, and bank of America and the other biggies? If so, WHY, when they know they are toxic? Is this part of the big bank bail outs, making fannie and freddie buy up these toxic assets of others? I don't get what is going on here?

Exactly... I don't think anyone does.

 

[Oddball]

is fannie mae and freddie mac STILL buying up the bad MBS's of Goldman, and bank of America and the other biggies? If so, WHY, when they know they are toxic? Is this part of the big bank bail outs, making fannie and freddie buy up these toxic assets of others? I don't get what is going on here?

Cloward-Piven strategy - Wikipedia, the free encyclopedia

 

[CrusaderFrank]

1. See how badly we got fucked by TARP?

2. I thought Obama made all these great "investments" in Citi and GM and all that TARP money was coming back?

 

[CrusaderFrank]

is fannie mae and freddie mac STILL buying up the bad MBS's of Goldman, and bank of America and the other biggies? If so, WHY, when they know they are toxic? Is this part of the big bank bail outs, making fannie and freddie buy up these toxic assets of others? I don't get what is going on here?

Cloward?Piven strategy - Wikipedia, the free encyclopedia

Sadly 100% correct

 

[Care4all]

1. See how badly we got fucked by TARP?

2. I thought Obama made all these great "investments" in Citi and GM and all that TARP money was coming back?

you may be right....it appears that fannie and freddie are buying up the Citi bank, etc, toxic mortgage back securities...hiding the true performance of Citi bank and others, by putting their bad debt, on to fannie and freddie while Citi and others claim great performances?

 

[CrusaderFrank]

1. See how badly we got fucked by TARP?

2. I thought Obama made all these great "investments" in Citi and GM and all that TARP money was coming back?

you may be right....it appears that fannie and freddie are buying up the Citi bank, etc, toxic mortgage back securities...hiding the true performance of Citi bank and others, by putting their bad debt, on to fannie and freddie while Citi and others claim great performances?

Public losses and private profits. It's great to be politically connected

 

[blastoff]

And the Dimocrats have done what about F&F in their Financial Reform bill?

Yeah, and then when Republicans don't support it because Fan and Fred are left to cause us still more financial harm in the future they'll be accused of being the party of no, again.

Dims...phony bastards!

 

[boedicca]

The government required Fannie Mae and Freddie Mac to have 55% of their portfolios consist of mortgages held by people who earn below the median income. Given the high unemployment combined with the crash in real estate prices, much of the tract home and condo build out in this below 55% category is underwater. Even people who can afford to make payments have an incentive to walk away. It's going to get uglier.

And yet, Financial Reform doesn't include FM/FM. Why is that? In addition to the Cloward-Piven angle (quite accurate), FM/FM are big patronage troughs. The Dems hand out high paying jobs to their cronies (i.e. Jamie Gorelick), who are paid excessive compensation for no risk government sponsored jobs.

 

[Baruch Menachem]

Best thing for Fannie and Freddie is to put them out of our misery. Take them out behind the barn and put them down.

 

[boedicca]

But...but...but...Barney Frank said there was nothing wrong with Fannie Mae and Freddie Mac!

 

[Care4all]

But...but...but...Barney Frank said there was nothing wrong with Fannie Mae and Freddie Mac!

And this said a couple of years back has to do with WHAT?

do you know if freddie is having to buy up the toxic assets of others or not?

 

[Big Fitz]

These crackheads of cash need to be cut off.

The problem is, the dealer's goal is not to stop the addiction or help people, but enabling it to destroy everything attached to their victim so they can swoop in, take it all for cheap and rebuild it into what they want: Fascist/Socialist America.

 

[Baruch Menachem]

They aren't there to buy toxic assets. My understanding is that they are repackagers. They were supposed to buy good loans, package them up and then sell what amounted to mutual funds.


The complaint is that they lowered standards and didn't tell their investors, so the investors bolted, and Fannie and Freddie got stuck with loans that weren't supposed to be in their portfolios in the first place.

The idea is to pool the securities with a known risk factor. If you know you are going to take a 6% failure, but you have no idea from who, then you can price the failure into the security. But Fannie and Freddie were packaging loans with a lot higher risk factors, and since they had a guarantee, the buyers came back going what they hey?

And AIG was insuring those loans based on the set risk factor. They suddenly had to pay huge payouts for bad loans based on bad information.

The whole thing has been a festering sore since the mid 90's when the Clinton administration changed the rules on what could get repackaged, and the mandates to make loans to folks who really shouldn't have got them.

This mess has been building up a long time, and every time The Bush II administration tried to rein in the stupid, Barney Frank and Chris Dodd killed the reform in committee..
The Bush people really should have pushed this harder, but they didn't. But Frank and Dodd blaming Bush for their venality pushed the definition of crass to a new dimension.

 

[boedicca]

They are already holding the assets - some of which they just moved back onto the balance sheet due to a change in accounting rules (why these were allowed to be off balance sheet in the first place is beyond belief).

From the info disclosed in FRE's earnings release, it looks like they are continuing to buy up crap:

The GSE’s single-family non-performing assets, including both delinquent loans and REO properties, increased to $115 billion as of March 31, 2010, compared to $103 billion at December 31, 2009. Freddie said this increase includes a high volume of loans subject to troubled debt restructuring accounting during the first quarter.

Freddie Mac Posts $6.7 Billion Loss in Q1


It's also quite interesting how much they are having to pay the Fed. This is a Big Shell Game.

 

[007]

These crackheads of cash need to be cut off.

The problem is, the dealer's goal is not to stop the addiction or help people, but enabling it to destroy everything attached to their victim so they can swoop in, take it all for cheap and rebuild it into what they want: Fascist/Socialist America.

DING, DING, DING, DING... Give the man a cigar.

That is EXACTLY what is going on, and OWEbama is the enabler in chief.

 

[Big Fitz]

Just listening to Rush made me realize something. As we have gotten in with the bailout of Greece through the IMF, it's pretty much a foregone solution that the leftists running the nation will remain in charge and then ultimately default on their loans causing yet ANOTHER crisis.

And yet we still haven't bailed out California.

But Rush made one VERY important point: Never lend to a spendthrift.

And that's when it clicked. We need to STOP bailing out anyone without a firm plan that can be binding and or criminalize actions taken to subvert the spending plan the same way you would be penalized if a bankruptcy judge put you on a budget. Otherwise, we need to let these groups fail and assist those who move in AFTER to pick up the pieces and WILL hold to a budget to repay the debts. Sure they will get the benefit of buying up the assets on the cheap, but, that's part of the bonus for being fiscally responsible. You can pick up the wreckage of those who weren't, and put it back into play under your control.

Anyone else have a thought in this manner? No bailouts for a status quo without binding/criminalizing rulings with a budget plan to repay? Or you help out those who come in afterwards to pick up the pieces.

On the other hand, I know that P-BO and company is hoping to be the group to come in and pick up the pieces. The question in that case are there conservatives able to thwart those plans?

 

[boedicca]

It's very clear that the governments cannot see beyond the immediate crisis. Each bail out just doubles down the risk, hurtling us toward the inevitable meltdown.

 

[Big Fitz]

It's very clear that the governments cannot see beyond the immediate crisis. Each bail out just doubles down the risk, hurtling us toward the inevitable meltdown.

For the current members of government to solve the problem is to indict themselves as culpable in it's creation. They will never do that. Better to destroy everything and try to get away in the chaos first.