ohreally

Bad-News Friday Nights

What was that you wrote about "Fed likes to release bad news after the markets close on Friday afternoon....Well today, they announced something just a little bit bigger" ?

Can you point us to this Fed announcement you write about? I know there have been several articles based on un-named sources, but you took a pretty big leap into make believe land when you transformed that into a "Fed announcement"

Fannie and Freddie Can't Sell Their Debt

Since you need Buffet to do your thinking for you ask him what this means: " NEW YORK, Aug 25 (Reuters) - Shares of Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) were up 5 percent on Monday after solid demand for its $2 billion sale of 3-month and 6-month bills, easing some worries about its ability to raise cash. [ID:nN25422818]

Freddie's stock was last up 15 cents, or 5.3 percent, at $2.96, erasing an earlier loss of 9 percent.

(Reporting by Richard Leong, Editing by Chizu Nomiyama) "

Ask uncle Warren if this means "Fannie and Freddie Can't Sell Their Debt"

Fannie and Freddie Can't Sell Their Debt

Someone wrote "Dwb makes the right point in that the debt is not extinguished so real progress, deleveraging, is not accomplished. This is a shell game period. "

It's like if someone wrote in wondering why they have to keep putting gas in their car. "The automobile is a shell game because it keeps needing gas to operate"

Fannie and Freddie Can't Sell Their Debt

It is starting to get amusing watching these dumb hacks make up stupi stories.

A question to the author: if "Fannie and Freddie Can't Sell Their Debt", then why is their debt trading at a premium to par"?

Who do you think you are fooling?

Fannie and Freddie Shareholders Run for the Exit

Someone wrote "Whisper On The Wind:
Is it possible that analysts said that FNM/FRE would go to zero because that is what they actually believed will happen and it is their job to report their findings? Just a thought... "

It is not their job to simply report findings. It is there job to move the price of stocks and to intensify periods of euphoria and despair. Time and again I have seen analyst consensus produce insanely optimistic predictions at the top ($200brl oil, dow 35k) and hopeless despair at the bottom (paraphrase: Increase in CA home sales will not save you,"No recovery seen out to the far horizon, etc).

Where the analysts are at their absolute worst (or best depending on how you see their job function) is in their invariable counter trend friction after a top or bottom has been put in. Here we see commodities analysts lining people up to buy oil and corn contracts when the commodities bull has been slain. And we will surely see them talking down the beginnings of the inveitable recovery in financials.

Fannie and Freddie Shareholders Run for the Exit

Corning went from $80+ to under $2 in months. It recovered.
Nextel went from $30s/40s to under $3 in no time. It recovered
Etrade plunged from $60 to $2 fast. It recovered.
AES went from $70 to $2. It recovered.
Healthsouth went from $30 to 9 cents. It recovered.

MBI and ABK were left for dead, they are the first to start recering in this cycle. BTW the shorts that raided those 2 have now moved on the FRE and FNM.

Whats going on with the GSEs is simple fearmongering in a time of uncertainty. It works everytime.

Historic Financial Collapse Underway?

Peter Stansberry writes:
______________________...
Whether we like to admit it or not, the entire market for housing in the United States has been corrupted by government involvement. By subsidizing the availability of credit and by granting huge tax incentives to home speculators, the government helped finance the biggest bubble of all – the biggest bubble in history. It won't be unwound without serious disruptions to our economy and, unfortunately, a tremendous amount of pain.

Fannie Mae and Freddie Mac made it all possible. Released from capital-ratio requirements and backed with a line of credit at the Treasury, they were able to buy a nearly unlimited amount of mortgages. Today, Freddie or Fannie finance more than 80% of all new mortgages in the United States. Over the last several decades, their presence in the market greatly lowered interest rates, created an endless supply of credit, and pushed housing prices higher. Meanwhile, the cost of the government guarantee, which lay behind Fannie and Freddie's power, was invisible.
______________________...

The above statement either comes from another planet, is insane, or is just an out right fabrication.

The mortgage bubble was created by unregulated Wall Street Securization by firms like Bear Stearns of toxic mortgages originated by firms like Countrywide.

Fannie and Freddie were pushed aside and locked out of this fools party by the Federal Government, which leashed the GSEs in favor of letting Wall Street, Countrywide and Indymac run wild. These firms no longer exist.

In the vast bulk of their business, Fannie and Freddie did not back subprime or LTV greater than 80% except in relatively microscopic ammounts. The numbers of exotic mortages are under 10% of all segments of their business, not to mention their exotics were of higher quality because they retained basic underwriting standards compared to the Countrywides and Indymacs.

As of Freddies most recent numbers, they had .77% non performing mortages.

This is why right now, while mindless bashers howl like fools, the GSEs are the ONE source of liquidity propping up the housing market. IF the GSEs were not performing this service today, the housing market would be 10 times worse off, as the reduced but still significant buyers we now have would be shut entirely out of the market for lack of mortgage availability.

Compare what is being written about the GSEs with the actual reality,and draw your own conclusions.

One other thing. This article was published on SUNDAY MORNING and ALREADY HAS 35+ comments within minutes ALL AGREEING WITH ITS ABSURD ASSERTIONS. Think about that! Also there seem to be comments predating the article post date?

The article is not even well thought out. It was only in July 08 that this person realized the financials were under stress? Where was he when Countrywide and Bear Stearns fell? This guy just wrote an article about the mortgage/housing boom bust WITHOUT MENTIONING BEARS STEARNS, WALL STREET, COUNTRYWIDE OR INDYMAC!!!!!

Historic Financial Collapse Underway?

Peter Stansberry writes:
______________________...
Whether we like to admit it or not, the entire market for housing in the United States has been corrupted by government involvement. By subsidizing the availability of credit and by granting huge tax incentives to home speculators, the government helped finance the biggest bubble of all – the biggest bubble in history. It won't be unwound without serious disruptions to our economy and, unfortunately, a tremendous amount of pain.

Fannie Mae and Freddie Mac made it all possible. Released from capital-ratio requirements and backed with a line of credit at the Treasury, they were able to buy a nearly unlimited amount of mortgages. Today, Freddie or Fannie finance more than 80% of all new mortgages in the United States. Over the last several decades, their presence in the market greatly lowered interest rates, created an endless supply of credit, and pushed housing prices higher. Meanwhile, the cost of the government guarantee, which lay behind Fannie and Freddie's power, was invisible.
______________________...

The above statement either comes from another planet, is insane, or is just an out right fabrication.

The mortgage bubble was created by unreguated Wall St Securization by firms like Bear Stearns of loans originated by firms like Countrywide.

Fannie and Freddie were pushed aside and locked out of this fools party by the federal Government, which leashed the GSEs in favor of letting Wall St, Countrywide and Indymac run wild. Thes firms no longer exist.

In the vast bulk of their business, Fannie and Freddie did not back subprime or LTV greater than 80% except in relatively microscopic ammounts. They numbers of exotic mortages are under 10% of all segments of their business, not to mention their exotics were of higher quality because they retained their underwriting standards compared to the Countrywides and Indymacs.

As of Freddies most recent numbers, they had .77% non performing mortages.

This is why right now, while mindless bashers howl ike fools, the GSEs are the ONE source of liquidity propping up the housing market. IF the GSEs were not performing this service today, the housing market would be 10 times worse off, as the reduced but still significant buyers we now have would be shut entirely out of the market.

Compare what is being written about the GSEs with the actual reality,and draw your own conclusions.

One other thing. This article was published on SUNDAY MORNING and ALREADY HAS 35+ comments within minutes ALL AGREEING WITH ITS ABSURD ASSERTIONS. Think about that!

The article is not even well thought out. It was only in July 08 that this person realized the financials were under stress? Where was he when Countrywide and Bear Stearns fell?

Fannie & Freddie: Why Government Support is a Good Thing

This article represents a lone voice of reason in a room full of breying fools and the dissembling stock-shysters who egg them on.

Why the Market's Not Buying the 'Adequately Capitalized' Claim

All this bad news you are hearing about Fannie and Freddie? This is what it really means: Wall St, Countrywide and IndyMac packaged and sold junk mortgages that caused the housing bubble. When the bubbe burst Countrywide, Indymac and Bear Stearns ceased to exist. The Wall St firms such as Lehman that were involved barely survived to become the walking corpses they are now.

Now only Freddie and Fannie remain as private makers in the secondary mortgage market. Influential Investers and hedge funds Know that these firms now own 80% of this market, and they want in. So they put out a lot of terrifying news through respected conduits (WSJ, Barrons, S&P) to incite a panic to clear holders out and basically steal the shares.

An army of secondary conduits such as the author of this peice, spend a great deal of time re-packaging alarming variations of this story over and over again. Most of the articles are done so poorly as to be transparent in seeming to be constructed simply to cause Fear, Uncertainty and Doubt.

Take this article for instance - its underlying motif is all about insolvency. Yet nowhere in the article is it mentioned that these firms went insolvent in 1979 for several quarters. Afterward, with no share diluyion, they went on to become among the greatest performing stocks in the past 40 years, contributing greatly to Buffet's Berkshire Hathaway performance.

Here is how this works: in down markets the influential investors talk stocks down in order to establish low entry positions. Afterward, with positions established, they talk those same stocks up for the remainder of the business cycle - until its time to repeat the process.

If you listen to them, you will end up selling low and buying high later. Already many peope suffer now ahving sold at the height of the panic on Monday and Tuesday only to watch financials gain 49-60% in a matter of days.

Control your fear and greed, and the same will not happen to you.