bbzz24

Leverage 101: The Real Cause of the Financial Crisis

so you blame it on the tool... rather than on the lame fool using it?!?
!?
not that leverage malfunctioned in any way...but because it was used for self harm.

Government Intervention? Here's a Scorecard

'The Bush Administration has followed the Paulson lead'

This alone shows that in your analysis you put the cart before the horse: Paulson is part of the Bush Administration, but you may not fully comprehend this....

US Dollar Remains Strong in Spite of Negative Data

gold,oil,dollar. what do they have in common this year?
pump and dump

Can the US Government Afford Future Bailouts?

... as long as asians are buying those funny treasury 'bills'

Fannie & Freddie: Just the Tip of the Iceberg

you seem really upset. but who is being bailed out? the taxpayers themselves. withouth easy credit the everage home price may easily reach 10-15,000 having in mind that the taxpayers hardly save any money.

Fannie/Freddie Bailout 'Disastrous Fiasco'

houses are next to worthless withouth easy access to credit, just because they are levered buys. if only the standard 80/20 model with 30% of income mortgage payment model is restored all this 'collateral' will shrink probably 2x in value. if you remove the GSEs and leave financing to private companies, in time like these there would be no market at all besides cash.

i think the main reason of this action was to instill confidence the treasury will not default on its debt.

GSEs Into Conservatorship: Can Housing Stabilize Now?

home prices are falling at 10% rate yoy and the treasury is going to buy some of those MBS. those mortgages better be with 20% down payment. ahhh, how many people can put down 20% for a new home? well, maybe the housing market will not stabilize as soon as you see it.

and how about the secondary market? when those monsters start in 2010 MBS fire sales in the tune of 150bn per year? you think those will not be significantly discounted to change hands?

Paulson Begins Gradual Wind-Down of GSEs Within Conservatorship

lots of talk about eliminating systemic risk from all direction by reducing the GSEs' portfolios. but have you forgotten that the congress passed 300bn bill just few weeks back and now the treasury wants to scale down those monsters and ultimately break them apart. that means they will no longer be political tools and funding mortgages will become more expensive in the future and maybe some of those 2006/7 purchased homes will not recover full loan value in decades.

On Recent Financial Stories

'If Fannie and Freddie are woefully undercapitalized now then what’s the catalyst for things to get better?'

why take credit for bailout when you can put it off for the next administration and political opponent.

Who's Letting Banks Invest in Fannie and Freddie Preferred Stock?

wiki: certain types of preferred stock qualifies as Tier 1 capital

Fannie/Freddie Rally: A Product of Fed Intervention

this is a pure arbitrage play yielding 0.58%: sell treasuries, buy debt already explicitly backed by the treasury and pocket the spread.

Fannie and Freddie Shareholders Run for the Exit

technical analysis would not be the appropriate tool to analyze deadbeats...

Fannie, Freddie Bailout To Wipe Out Equity Holders?

hey,
keep stocks afloat to election time and then blame it all on obama.

What the Fed's Latest Decision Means for Investors

you are pointing our attention to the engine of the car. but what about the handbrakes?!?!
1. the SEC has banned short selling in 19 banks by creating bottlenecks at the securities lending side.
2. the CFTC has already identified one speculator!!! needless to say this is a dutch company with no political clout that actually has been shorting oil more often than going long. at the same time SemGroup was allowed to accumulate short position equal to 5,000 days of their own production (1.1 days of global consumption). they are not deemed speculators.

the government is actively engaging now in dictating economic behavior a-la USSR style. i guess they can ban trading in precious metals as well before you even realize...

Freddie and Fannie: The Case Against Hybrids

According to GAAP those companies are inslovent. In fact any entity that leverages up to 200 times can become insolvent any moment as 0.5% unfavorable swing in asset prices wipes out all equity.
However, we see that even insolvent companies can borrow at near treasury rates aslong as they are backed by the government. This is what keeps Phonie & Fraudy in capital markets.
And dont forget that what keeps them still from borrowing is the positive cash flow which just reminds me that their real 'assets' is not the home loan collateral but rather the willingness of the borrower to continue servicing the loan. So arent their books still cooked given all this?