whtamess's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/227266/comments http://seekingalpha.com/article/101680-pathetic-display-at-yesterday-s-financial-hearings?source=feed#comment-292398 292398 Tue, 28 Oct 2008 10:37:20 -0400 http://seekingalpha.com/article/101680-pathetic-display-at-yesterday-s-financial-hearings?source=feed#comment-292396 292396 Tue, 28 Oct 2008 10:34:37 -0400 http://seekingalpha.com/article/98270-how-much-are-fannie-and-freddie-to-blame?source=feed#comment-271837 271837 Did you ever hear of Mark to Market accounting... the gov't doesn't have to abide by it Fannie and Freddie did. You want the culprit to this fiasco look at the Financial Accounting Standards Board site and review the rules and if you have any idea at all about accounting rules you will begin to understand a portion of what happened here. I found it interesting to hear a Senator mention on the news that the govt doesn't have to abide by these rules and therefore they will be in a position to make money and protect the taxpayers for this rescue plan.
And yet another reason for the mess. From an article..." Andrew Cuomo and Fannie and Freddie
How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis
By Wayne Barrett"
published: August 05, 2008
and I quote "Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why." here is the link for the article www.villagevoice.com/c...

]]> Thu, 02 Oct 2008 13:57:06 -0400 Did you ever hear of Mark to Market accounting... the gov't doesn't have to abide by it Fannie and Freddie did. You want the culprit to this fiasco look at the Financial Accounting Standards Board site and review the rules and if you have any idea at all about accounting rules you will begin to understand a portion of what happened here. I found it interesting to hear a Senator mention on the news that the govt doesn't have to abide by these rules and therefore they will be in a position to make money and protect the taxpayers for this rescue plan.
And yet another reason for the mess. From an article..." Andrew Cuomo and Fannie and Freddie
How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis
By Wayne Barrett"
published: August 05, 2008
and I quote "Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why." here is the link for the article www.villagevoice.com/c...

]]> http://seekingalpha.com/article/96752-feddie-pay-the-reality-of-the-bailout-world?source=feed#comment-263484 263484 Wed, 24 Sep 2008 10:23:14 -0400 http://seekingalpha.com/article/94833-paulson-should-remain-treasurer-through-the-elections?source=feed#comment-250409 250409 Wed, 10 Sep 2008 10:58:42 -0400 http://seekingalpha.com/article/94833-paulson-should-remain-treasurer-through-the-elections?source=feed#comment-250395 250395 I would add I have gone out of way to read a great deal of information past and present to provide a stronger understanding of this situation prior to coming to my conclusion. I hope you have done the same. These are interesting and frightening times when understanding the freedoms that were provided to us are protected from government intervention
]]> Wed, 10 Sep 2008 10:49:06 -0400 I would add I have gone out of way to read a great deal of information past and present to provide a stronger understanding of this situation prior to coming to my conclusion. I hope you have done the same. These are interesting and frightening times when understanding the freedoms that were provided to us are protected from government intervention
]]> http://seekingalpha.com/article/94833-paulson-should-remain-treasurer-through-the-elections?source=feed#comment-250299 250299 Wed, 10 Sep 2008 10:03:07 -0400 http://seekingalpha.com/article/94623-the-fannie-freddie-bailout-consequences-to-the-u-s-taxpayer?source=feed#comment-250274 250274 Wed, 10 Sep 2008 09:36:28 -0400 http://seekingalpha.com/article/94327-welcome-to-the-mortgage-business?source=feed#comment-250267 250267 Wed, 10 Sep 2008 09:22:36 -0400 http://seekingalpha.com/article/94564-the-fed-a-true-haven-for-capitalism?source=feed#comment-250256 250256 Wed, 10 Sep 2008 09:16:59 -0400 http://seekingalpha.com/article/94422-the-fannie-freddie-nationalization-conservatives-acting-like-socialists?source=feed#comment-248536 248536 Mon, 08 Sep 2008 13:13:08 -0400 http://seekingalpha.com/article/94327-welcome-to-the-mortgage-business?source=feed#comment-248271 248271
Why the Panic over Fannie and Freddie?
by: Bill Cara posted on: September 07, 2008 | about stocks: FNM / FRE Font Size: PrintEmail [The following is excerpted from Bill Cara's Daily Report from Saturday, Sept. 6, 2008]

After the US Jobs data was published Friday at 8:30am ET, the DJIA futures sank and the market continued south for two hours. Suddenly – maybe it was a leak that Fannie (FNM) and Freddie (FRE) would be saved by this Administration – US equity prices firmed.

Whatever is happening with Fannie and Freddie seems to me to be a well-crafted maneuver by Washington insiders (Mr. Moral Hazard instantly comes to mind) to help Wall Street in the remaining days of this Administration. Oh sure there will be cries by panic-stricken investors that Fannie and Freddie are on the verge of collapse and that this single problem is the source of America’s economic and financial stress (i.e., simultaneous economic recession and credit crunch) at the moment. But, as I see it, the ‘Blame it on Fannie & Freddie’ story is being scripted by public relations propagandist of the first order, Hill & Knowlton. Let’s just say for the record that the Boards of Directors and CEOs of Fannie & Freddie have quite recently publicly announced that their enterprises have adequate capital to sustain operations until well past the coming change of Administration. Then, why the panic?

What is wrong with America – the greed and gluttony of Wall Street and Washington insiders – will look like smack-mouth football in the next month, and the central characters behind it won’t give a damn. This is wrong – they know it; you know it.

The fact there is nothing you can do about it – to the detriment of your children and their children – is a tragedy. The decisions made in September and October by your elected representatives – societal leeches of the highest order -- will steal the wealth created by a whole generation of Americans.

PIMCO, the Fed of NY, the Treasury Secretary – oh my! Mom & Pop, you have been set up for a fleecing.

Yes, these are interesting times.
]]> Mon, 08 Sep 2008 10:27:28 -0400
Why the Panic over Fannie and Freddie?
by: Bill Cara posted on: September 07, 2008 | about stocks: FNM / FRE Font Size: PrintEmail [The following is excerpted from Bill Cara's Daily Report from Saturday, Sept. 6, 2008]

After the US Jobs data was published Friday at 8:30am ET, the DJIA futures sank and the market continued south for two hours. Suddenly – maybe it was a leak that Fannie (FNM) and Freddie (FRE) would be saved by this Administration – US equity prices firmed.

Whatever is happening with Fannie and Freddie seems to me to be a well-crafted maneuver by Washington insiders (Mr. Moral Hazard instantly comes to mind) to help Wall Street in the remaining days of this Administration. Oh sure there will be cries by panic-stricken investors that Fannie and Freddie are on the verge of collapse and that this single problem is the source of America’s economic and financial stress (i.e., simultaneous economic recession and credit crunch) at the moment. But, as I see it, the ‘Blame it on Fannie & Freddie’ story is being scripted by public relations propagandist of the first order, Hill & Knowlton. Let’s just say for the record that the Boards of Directors and CEOs of Fannie & Freddie have quite recently publicly announced that their enterprises have adequate capital to sustain operations until well past the coming change of Administration. Then, why the panic?

What is wrong with America – the greed and gluttony of Wall Street and Washington insiders – will look like smack-mouth football in the next month, and the central characters behind it won’t give a damn. This is wrong – they know it; you know it.

The fact there is nothing you can do about it – to the detriment of your children and their children – is a tragedy. The decisions made in September and October by your elected representatives – societal leeches of the highest order -- will steal the wealth created by a whole generation of Americans.

PIMCO, the Fed of NY, the Treasury Secretary – oh my! Mom & Pop, you have been set up for a fleecing.

Yes, these are interesting times.
]]> http://seekingalpha.com/article/94327-welcome-to-the-mortgage-business?source=feed#comment-248194 248194 Here are the facts that I know, well I guess I think I know them based on media representation; Fannie Mae met all of the requirements that were set for them and the regulators released them several months ago. This was after arduous audits and reviews. Freddie on the other hand did not and has demonstrated its inability to pass any of the stress tests. So with that we have one GSE that was in good shape and one that was not. Does this mean that you take them both down? I did however read that they were both currently profitable.
Here is one article I am talking about: Fannie, Freddie Mortgage Profit Reaches 10-Year High
Bloomberg (08/27/08); Shenn, Jody
Citigroup Inc. reports a yield of approximately 40 basis points on current-coupon mortgage bonds bought by Fannie Mae and Freddie Mac, surpassing the amount they pay to borrow by unloading benchmark bonds. Net interest income recorded by Fannie Mae surged to $2.1 billion in the second quarter from $1.7 billion in the first quarter, according to Credit Suisse Group, with investment profits rising to 100 basis points from 82 basis points. Meanwhile, Freddie Mac posted a 92-percent jump in net interest income to $1.5 billion, with investment profits increasing to 80 basis points from 48 basis points. According to Loomis Sayles & Co. Vice Chairman Dan Fuss, "They, at the increment, are very, very profitable. If they can continue to do anything close to business as usual, they are immensely profitable.

This gets very confusing for the average Joe like me. You read this and then you see the action taken. What concerns me as well is the government now in essence having ownership of a huge piece of the mortgage market (yes I know they are calling this a conservatorship) is this really one step in a socialistic form of government? Things like eminent domain come to mind. Maybe a crazy thought but you know crazier things have happened lately.

Why was Fannie Mae included in this debacle when they clearly met all of the requirements? I'm just really trying to understand this. To repeat myself I get the whole Freddie Mac piece. There are just too many actions here that make me wonder out loud. Is this another George Bush "Weapons of Mass Destruction" ploy to get the government involved in something they shouldn't be? These are simply questions that have started to cross my mind. I am completely open to comments that help educate me because as it stands and from what I read from the onset of this issue up and until today all I can get is “beware” this is just the beginning of yet another government intervention going to go wrong. Thank you for any insight you might care to share.
]]> Mon, 08 Sep 2008 09:31:03 -0400 Here are the facts that I know, well I guess I think I know them based on media representation; Fannie Mae met all of the requirements that were set for them and the regulators released them several months ago. This was after arduous audits and reviews. Freddie on the other hand did not and has demonstrated its inability to pass any of the stress tests. So with that we have one GSE that was in good shape and one that was not. Does this mean that you take them both down? I did however read that they were both currently profitable.
Here is one article I am talking about: Fannie, Freddie Mortgage Profit Reaches 10-Year High
Bloomberg (08/27/08); Shenn, Jody
Citigroup Inc. reports a yield of approximately 40 basis points on current-coupon mortgage bonds bought by Fannie Mae and Freddie Mac, surpassing the amount they pay to borrow by unloading benchmark bonds. Net interest income recorded by Fannie Mae surged to $2.1 billion in the second quarter from $1.7 billion in the first quarter, according to Credit Suisse Group, with investment profits rising to 100 basis points from 82 basis points. Meanwhile, Freddie Mac posted a 92-percent jump in net interest income to $1.5 billion, with investment profits increasing to 80 basis points from 48 basis points. According to Loomis Sayles & Co. Vice Chairman Dan Fuss, "They, at the increment, are very, very profitable. If they can continue to do anything close to business as usual, they are immensely profitable.

This gets very confusing for the average Joe like me. You read this and then you see the action taken. What concerns me as well is the government now in essence having ownership of a huge piece of the mortgage market (yes I know they are calling this a conservatorship) is this really one step in a socialistic form of government? Things like eminent domain come to mind. Maybe a crazy thought but you know crazier things have happened lately.

Why was Fannie Mae included in this debacle when they clearly met all of the requirements? I'm just really trying to understand this. To repeat myself I get the whole Freddie Mac piece. There are just too many actions here that make me wonder out loud. Is this another George Bush "Weapons of Mass Destruction" ploy to get the government involved in something they shouldn't be? These are simply questions that have started to cross my mind. I am completely open to comments that help educate me because as it stands and from what I read from the onset of this issue up and until today all I can get is “beware” this is just the beginning of yet another government intervention going to go wrong. Thank you for any insight you might care to share.
]]> http://seekingalpha.com/article/88098-the-true-nature-of-fan-and-fred?source=feed#comment-219347 219347 Thu, 31 Jul 2008 11:31:25 -0400 http://seekingalpha.com/article/85249-fannie-and-freddie-are-largely-responsible-for-the-housing-bubble?source=feed#comment-207155 207155
What happened here was some nitwit coming up with accounting rules that caused so many asset problems and people like this that write articles that downgrade the stock that in turn puts a crack in market and affects our dollar nationally and internationally.
]]> Wed, 16 Jul 2008 15:47:09 -0400
What happened here was some nitwit coming up with accounting rules that caused so many asset problems and people like this that write articles that downgrade the stock that in turn puts a crack in market and affects our dollar nationally and internationally.
]]>