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| User Info | When Does The CHARADE Stop? (Fannie) in forum [Ticker] | |||
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Genesis Posts: 71432 Incept: 2007-06-26 
KD^2 
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http://market-ticker.org/archives/1591-W....
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-06 08:27:21
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Signas Posts: 609 Incept: 2007-06-26 Reno
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Just glad you tracking the financials and not the CIA.
---------- Carbon Credits "FOR SALE" Bring a wheelbarrow full of money!! Last modified:
2009-11-06 12:24:47 by signas
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Micronin127 Posts: 607 Incept: 2008-01-21 
Swampscott, MA
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Is there any particular reason we need two GSE's? Do we like have two sets of employees and executives? Two bonus pools? Two Christmas parties..... Couldn't they force them to merge just so that they could cull a few dozen senior vice presidents but retain most of the rank and file. At some point they need to do some cost cutting too so that their quartely losses start declining.
2009-11-06 08:42:59
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Glasshammer Posts: 124 Incept: 2009-09-02
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Gen You should check out KidDyanmite's blog. He was one of the 8 bloggers summoned to speak with the Treasury. "Tyler Cowen asked if the Treasury was worried about the possibility of the economy falling off a cliff, and was greeted with a response that pretty much summed up the Treasury's options: the response was essentially (and this is not a direct quote) "what else can we do - should we try to pull that potential cliff forward instead of pushing it back?" Before I could jump out of my chair and shout "BUT PUSHING THE CLIFF BACK MAKES IT TALLER TOO!" Tyler Cowen uttered almost those exact words. The STO nodded and pursed his lips - acknowledging the possibility of that reality." http://fridayinvegas.blogspot.com/ Yes the Treasury is really that bad.
2009-11-06 08:47:54
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Blankfiend Posts: 1736 Incept: 2009-02-07
MA
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FNM is a microcosm for our entire country. Debt far greater than any hope for revenue generation, and debt service reaching a breaking point. Good ticker Gen.
---------- My Elliott Wave Blog: http://blankfiendsew.blogspot.com/ Democrats and Republicans are like M&M's - different colors on the outside and full of brown stuff on the inside.
2009-11-06 08:50:03
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Statusquojoe Posts: 2397 Incept: 2008-11-20
Land of the fees Home of the slaves.
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Quote:Accordingly, we believe that continued federal government support of our business and the financial markets, as well as our status as a GSE, are essential to maintaining our access to debt funding. "...maintaining our access to debt funding" Don't they mean perpetuation of their failure? ---------- "In short, you are the definition of moral hazard." Senator Bunning to Bernanke
2009-11-06 08:58:46
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Throxxofvron Posts: 2672 Incept: 2009-02-17
The Land of Bilk & Money
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Quote:THIS CHARADE MUST STOP AND THE GSE'S MUST BE RESOLVED. Resolved = Burned to the Ground with Everyone Responsible Sealed Inside? ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
2009-11-06 09:15:03
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Mondocondo Posts: 3143 Incept: 2007-12-03
Miami
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Fannie and Freddie are rated AAA. 
2009-11-06 09:21:09
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Leicestersq Posts: 44 Incept: 2009-10-12 UK
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What is going on here? Do we have the Fed printing money? And then they buy the debt of Freddie and Fannie? And then Fannie and Freddie lend this money to mortgagees? And then the mortgagee pays too much for a house. And then the mortgagee walks away from their obligations. And the person or organisation that sold the house is the recipient of the new cash printed by the Fed. Is that how QE is getting money into the US economy? Does that mean we have some people or organisations that sold these houses that now have vast amounts of cash? Who are these people or organisations who are benefitting from all of this new money?
2009-11-06 09:25:17
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Leicestersq Posts: 44 Incept: 2009-10-12 UK
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Any chance of a ticker on this one? http://www.bloomberg.com/apps/news?pid=2.... Seems that a judge has put a stop to another fraud.
2009-11-06 09:36:51
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Berkleyreindeer Posts: 560 Incept: 2008-07-22 Minneapolis , MN
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micronin: what we need is a standardized system of underwriting and packaging mortgages. "McFinance" if you will, has allowed the cost of a mortgage to shrink through standardization and efficiency gains. In my opinion, the greatest benefit from fannie and freddie is simply the brokering of loans between lenders and borrowers, and this is not unique to any one company. 10 could be set up and as long as they collude to offer similar products, the system would work wonderfully. As for the actual mess at hand, I would ask readers to remember how a bank works. Depositors are lined up on one side, borrowers on the other, and the bank is the ether between them. By the time someone is in their late 40's, you can easily see which half they belong to. One has a positive net worth, the other requires the loan officer to use his calculator before pushing the approve button on a car loan. At phoney and fraudie the willing depositors have already left the show. This cannot end well as it is now the gov't and a bankrupt lending institution providing finance for people who overpaid for houses. ---------- It'll get worse. Just wait.
2009-11-06 09:37:38
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Curbyourrisk Posts: 1891 Incept: 2008-08-19 Long Island, New York
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Quote:Fannie and Freddie are rated AAA. Don't they have to be AAA, otherwise the Treasur and FED could not be accepting their paper as collateral. ---------- Hopium: hope filled delirium preached by the White House and Swallowed whole by the American Sheeple. Why is Franklin Raines a free man? "We saved the world from disaster" - Ben Bernanke - Jackson Hole 08/21/2009 
2009-11-06 09:42:45
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Pabloescobar Posts: 5325 Incept: 2008-04-23 
Pacific Northwest
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What ever happened to the crisis at the FHLBs? Did they get made whole at the FED? Were all their assets transferred to Fannie, Freddie, et al? They should have blown up months ago.... ---------- “Science is built up with facts, as a house is with stones. But a collection of facts is no more a science than a heap of stones is a house.” - Jules Henri Poincare
2009-11-06 09:42:57
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Lastchance Posts: 1132 Incept: 2008-11-19 Las Vegas
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Fannie Mae is quite the case study. I have a hard time even believing much of their 10-Q. Seriously, would it not take a small army of auditors to really figure out all the positions, the trades, the collateral, etc???
---------- "We don't quit. I don't quit" President Obama 1/27/10 Man, I would to have him in one of our poker games.
2009-11-06 09:46:31
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Shrpblnd Posts: 1169 Incept: 2007-08-06
Los Angeles, CA
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Karl, This ticker is a masterpiece. This level of analysis of a key institution never occurs in mainstream media sources anymore, and yet it is critical to understanding what is actually happening in our economy. This is why I read you everyday.
2009-11-06 09:47:29
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Sqmo Posts: 387 Incept: 2009-09-14
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Ever since being taken over FNM has had liabilities > assets = neg net worth. In this case negative shareholder equity. Last quarter it was -$10B and now it is -$15B. So what exactly is preferred stock in a BK company? I absolutely agree that this is the opposite of personification. This company represents all of what is wrong with typical Americans and their attitudes toward debt. With revenue of $5B that can't possibly increase eventually their DTI will become greater than 50%.
2009-11-06 10:32:37
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Yermawm Posts: 91 Incept: 2009-04-20 SoCal
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Great ticker as usual. Unfortunately the Fed is hiding behind "unusual and exigent circumstances" or so we keep hearing. Would love to see a deconstruction of this justification...other than failure to abide by the rule of law ---------- Hide the decline. The new math.
2009-11-06 13:18:37
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Genesis Posts: 71432 Incept: 2007-06-26
KD^2
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Unusual and exigent circumstances only allows making LOANS, not making PURCHASES.
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-06 13:19:00
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Yermawm Posts: 91 Incept: 2009-04-20 SoCal
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Thx. Apologies if I missed it in the ticker.
---------- Hide the decline. The new math.
2009-11-06 13:34:17
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Genesis Posts: 71432 Incept: 2007-06-26
KD^2
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It's not in the ticker because it does not apply.
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-06 13:35:05
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Soros Posts: 1769 Incept: 2007-08-31 canada
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---------- Hey, man, you don't talk to the Bernanke. You listen to him. The man's enlarged my mind. He's a poet warrior in the classic sense. I mean sometimes he'll... uh... well, you'll say "hello" to him, right? And he'll just walk right by you. He won't even notice you.
2009-11-06 14:33:43
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Mlshawaii Posts: 466 Incept: 2009-05-13
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Quote:It appears that the original $200 billion line was set not with an eye toward what the firm could ultimately sustain and pay down, but rather with the singular goal of assuaging the financial markets at that instant in time. It appears that this is the government's modus operandi with everything they are doing these days. Great ticker.
2009-11-06 14:49:59
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Josecitomadera Posts: 283 Incept: 2009-03-20 Miami
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If FANNIE draws down that entire line then what? With 4.72% in the seriously delinquent node, in normal times 1/2% is a typical loss rate, then anything nearing the 4.72 number would cause that money to be drawn down sooner, would TREASURY extend further funds? Besides paying dividends, allowing for loss rates, typical office realted expenses, what are some of the other major operational costs that FANNIE has? How much of the 200 billion line do they have left? Last modified:
2009-11-06 15:10:34 by josecitomadera
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Stx_jay Posts: 958 Incept: 2008-04-06
St Croix, USVI
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Why the hell does FNM and FRE even bother with crap like 10-Qs, projections, underwriting, audits and the like? Honestly, I have no idea why executives and employees of FRE and FNM even try to keep up the appearances of a legitimate, ongoing concern these days. Just check out. Let that inner freak out. IT DOESN'T MATTER WHAT THEY DO, BECAUSE THE FED TAKES BUYS EVERYTHING AND CAN'T EVER GET RID OF IT IN ORDER TO REINFLATE THE HOUSING BUBBLE AS A MATTER OF PUBLIC POLICY. So again, why even sweat details? It's actually harmful to the goals of the Federal Gubmint. And I mean damn, I could could get drunk by noon and in the words, of the Narrator in Fight Club: "I dont even have to come into the office, I can do this job from home." I am Jack's complete lack of surprise. ---------- Let's sing along to the old AC/DC song, shall we? Cos I'm / TNX / I'm Dynamite / TNX / And I'll win the fight / TNX / I'm a power-load / TNX / Watch me explode
2009-11-06 15:25:57
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Genesis Posts: 71432 Incept: 2007-06-26
KD^2
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Jose, it doesn't matter. There's a tipping point where you can't (on your ordinary fee income less ordinary losses if you do everything right) make the dividend payments. That's the point where you blow, and I believe it's WELL under $200 billion. We might be there already, but if we're not, it's close. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-11-06 15:28:01
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