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Rethinking Fannie, Freddie and Mortgages

The Freddie and Fannie MBS bonds clearly state that they are not guaranteed by the U.S. Government. The taxpayers have been ripped off again. The bankers need to go to jail not be bailed out.

Grab Your Shorts, the Tide Has Turned

Jim Rogers has it right we need to dissolve the Federal Reserve to save our country. The interference and manipulation in the stock and commodities markets are out of control. This is only putting off the pain. Email your congressman and senator and tell them that if they don't reel in the Mr. Bernake and Paulson. The pain that they will feel is at the polls. Remember that this is an election year. Please remember to vote!

Individuals Could Win On Fannie, Freddie Preferreds

Greenspan is the only on who has a reasonable plan.

Individuals Could Win On Fannie, Freddie Preferreds

The need to be nationalized after the common and preferred stock goes to zero.

Fannie, Freddie: What Paulson Learned From the Pentagon

It is sad to say but an 84 year old retire has a better plan that the setting Fed Chairman Bernake! Write your congressman and senator and tell them you want to go with the Greenspan plan.

Fannie, Freddie: Beyond the Balance Sheets

Let the common and preferred stock go to zero and have the U.S. Government back the mortgage part only. Take them into receivership and create a resolute trust to accept the foreclosures like was done in the last S&L meltdown. These are publicly traded companies and deserve to go broke. The reason that moral hazard continues is that government backstops the losers rather that letting them fail, like should happen in a free market. Write your congressman and senator to make sure that taxpayer money is not spent to bailout these failed companies. This is an election year and think of the future generation debt if these company's are bailed out with taxpayers money. God bless America!

Whose Freddie Investment Thesis Is Right?

This is the Wikipedia definition of the ownership of the Government Sponsored Enterprise (GSE)s is: "Some of the GSEs, such as Fannie Mae and Freddie Mac, are privately owned but publicly chartered; others, such as the Federal Home Loan Banks, are owned by the corporations that use their services. Their lenders grant them favorable interest rates, and the buyers of their securities offer them high prices, as the implicit involvement of the Federal government gives them a sense of financial security.

In fact, GSE securities carry no explicit government guarantee."

The only thing that is guarantied by the U.S. Government is that the loans will be stood behind.

The idea that common and preferred share holders of these GSE's should be made whole is absurd!!! Anyone who bought the publicly traded stocks didn't want to pay the U. S. Government some of their money when the GSE's went up. I assure you that the taxpayers are not going to allow owners of common or preferred stock in the GSE's recover a dime. People are writing their congressmen and senators daily about this subject and with the elections coming up soon they don't want a real blood letting at the polls.

Its sad to say but even as old a Greenspan is he at least has a clue. His plan to take over the GSE's is the most likely course of action. If Secretary Paulson uses taxpayer money to bailout shareholders of the GSE's there will be hell to pay!

Fannie, Freddie Shareholders Will Be Left Holding the Bag - Barron's

The March 8th article was probably just as relevant today as it was then. The financials are not at a bottom or anywhere close and the GSE's will fail and be taken over by the U. S. Government. No change!

Bust, Bail, Repeat: The U.S. Enters into an Ever-Worsening Cycle

Excellent post. On strength of the dollar issue. Forty years ago with the dollar being devalued, out products would be selling like hot cakes. The problem is now we have few products since we are a service economy ie. jobs at McDonald's. We need a change in our government policies and direction. We should have the Apollo Project for Energy to produce jobs and products to sell the world.