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Talking with Republicans about Fannie Mae (FNM) and Freddie Mac (FRE), House Financial Services...

Talking with Republicans about Fannie Mae (FNM) and Freddie Mac (FRE), House Financial Services Committee Chairman Barney Frank says the panel will probably recommend abolishing the agencies, which have received nearly $111B in taxpayer aid since their seizure.
Comments (17)
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    ...and where do the $Trillions worth of mortgages go? Who is going to pick up the financing slack? These 2 with the FHA have been the only thing keeping the housing market alive.

     

    Amazingly the stock price for both is still above a $1 (@11:40am).
    22 Jan 2010, 11:41 AM Reply Like
  • jpiretti
    , contributor
    Comments (712) | Send Message
     
    Those MBS's make up a good portion of the additional 4.1T on the Fed's balance sheet. Much of that accounts for the Fed's record 52B in earnings last year. I certainly don't want to sound polyanish, but there has been some surprisingly good side effects to the Fed's increased balance sheet.
    22 Jan 2010, 12:05 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    They are high risk, low down payment loans (with ~30% default rate).....though the govt did make money...these are the same policies that created the first disaster.

     

    The very practices that the banks are presently under fire for doing.....
    22 Jan 2010, 03:01 PM Reply Like
  • D. McHattie
    , contributor
    Comments (1844) | Send Message
     
    Great idea. But I'm worried what Barney has in mind to replace them.
    22 Jan 2010, 11:42 AM Reply Like
  • bbro
    , contributor
    Comments (9745) | Send Message
     
    exactly....the banks that are supposed to be small???
    22 Jan 2010, 11:47 AM Reply Like
  • tripleblack
    , contributor
    Comments (13508) | Send Message
     
    The Barnster is just kidding around. Its all a scam. If someone needs an analogy, think back to the local cut-rate rug merchant and furniture store that has changed names and gone out of business about 20 times. Heck, they are even re-using the same "Going Out of Business, Final Days" signs to the point that they are worn out!

     

    Its a shell game, and Barney has the pea stuck in his vest pocket.
    22 Jan 2010, 11:49 AM Reply Like
  • Jackson Cash
    , contributor
    Comments (358) | Send Message
     
    "MISSION ACCOMPLISHED!"
    22 Jan 2010, 11:54 AM Reply Like
  • HiSpeed
    , contributor
    Comments (1107) | Send Message
     
    I'll believe that when I see it.
    22 Jan 2010, 11:55 AM Reply Like
  • Tack
    , contributor
    Comments (13426) | Send Message
     
    This is just post-election traumatic stress for the Democrats, where they're so depressed, like some kind of spurned juvenile, they act as if they almost don't care anymore. It will pass, but FNM/FRE won't.
    22 Jan 2010, 11:59 AM Reply Like
  • tunaman4u2
    , contributor
    Comments (3027) | Send Message
     
    Not going to happen... Give em to GS & see if things work out better for the people... no way
    22 Jan 2010, 12:00 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    Been watching the FNM and FRE chart...it is the most bizzare chart I have ever seen. Very incremental movements as iff controlled by a computer program of buy/sell (yes my tin foil hat is on). Almost the exact same pattern for the last several days......
    22 Jan 2010, 12:05 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    Now I'm convinced...FNM hit $1.00 but doesn't go below...even with the threat of being dismantled. The govt interference in the what was the free market is just depressing.
    22 Jan 2010, 03:30 PM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Make them a private corp and then put out an IPO, then we will see what they are really worth.
    22 Jan 2010, 12:05 PM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    Look to see them on a sub-penny stocks blog in the future.
    22 Jan 2010, 05:12 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    One has to believe that (like Obama-Care) the voters will get sick and tired of pouring money that we don't have down this black hole called Fanny & Freddy. Either they pull the plug, or the voter is eventually going to pull the plug on them.
    Look for that to be among the buzz words you hear in the next election. Remember "Kill the Bill"? You're gone, Harry!
    22 Jan 2010, 12:42 PM Reply Like
  • The Patriot
    , contributor
    Comments (324) | Send Message
     
    Nothing like a govt. in crisis - to provide plenty of amusement.

     

    "I don't make jokes. I just watch the government and report the facts".
    Will Rogers
    22 Jan 2010, 01:31 PM Reply Like
  • zorrow
    , contributor
    Comments (921) | Send Message
     
    These agencies need to be redone as public utilities. They're needed to provide liquidity for mortgages; but we don't need "private industry" for this facility. A makeover could include managing an equity sharing mortgage principle plan if Congress will go ahead and pass cramdown provisions in bankruptcy; then we could start to clear this inventory and eliminate fiction on Jamie Dimon's "Fortress Balance Sheet".
    22 Jan 2010, 04:24 PM Reply Like
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