Johnc222

Why We Need to Shrink America's Bloated Finance Sector

Your thinking is ...Wrong..! It wasn't the Fat Pig who eat the system, but the lack of due diligence on the part of the farmer.

Another words it all started with de-regulation, repeal of glas-steagal, unregulated hedge funds.

When all the regulation was dismantled,....on the bank's 18 th birthday.....well the girls went .."Wild".

Fannie and Freddie: Sticking it to the Taxpayers

Once again sorry for repeating. When the MBA memebership destroyed the market with 40:1 leverage the stabilizing force was the GSE without them being there....My God don't even think about it...folks.

The Value of those MBS bought from the banks by the GSE was rock at bottom prices. Here a tip...The Market is starting to turn up.

Therefore isn't it logical to assume that the value of those assets held at the GSE will also increase..?

FRE owes the Treasury $ 56 e+9 ....56 e+9 / 2 e+12 * 100 = 2.8 % of FRE portfolio holdings.

FRE will have no problem paying off the Government.

Also don't underestimate the intangible I talk about earlier...people only value the numbers. But, once again....FRE/FNM was there...!!! to support the Mortgage Market..WHEN there was NO ..Market..!!!

That also has.........." VALUE".

Fannie and Freddie: Sticking it to the Taxpayers

Value, it depends on how you define it..The desirability of worth of a thing.

Well, since FRE/FNM held most of America's mortgages in some form or another at the bottom of the housing crisis, the WORTH was savagely compromised. Now, that the Economy is turning up and most consensus would state that the Recession is over. You would natural conclude that the WORTH of FRE/FNM holdings would also increase in value.

FRE/FNM hold Trillion of dollars in assets (approx. 5.6 T) not billion, but Trillion alot of that was taken on the books at distressed levels. When the MBS membership was leverage 40X and recieved their Margin calls. The GSE step in and bought therefore supporting the market, that the Banks had destroyed.

Those destressed assets are now starting to rise in value. FRE with it's trillions dollar portfolio will have more then the 56 billion in worth to pay off the Government.

So, once again most of the analysis subscribed to the GSE was done at the bottom of the Market. Wait one more quarter or two and re-examined your math,...then tell me the GSE have no Value.-johnc222....Happy Labor Day...folks

Open Letter to FHFA's New Director: How About an Agency Preferred Stock Swap for REO?

The U.S. Government did not invest in these GSE to make money. They invested to stabilize the mortgage mess in the USA. There is no better mechanism out there to create market then the GSE.

These GSE must survive, one way to ensure their survival is to convert the Treasury perfered shares into common equity.

That would allow FRE to keep it's capital at the facility for operational expenses. Instead of paying out a divy of 1.1 Billion dollars to the Treasury Dept.

Taking a Divy from FRE make absolutely No Sense.

The Fannie and Freddie Anomaly

What about the trillion of dollars that FRE holds in it's mortgage portfolio. Assest that for the most part bought at distressed prices.

When the banks were leverage to their eye balls and recieved a margin call, they were forced to liquidate their holding. FRE step-up and bought alot of these assets for 10 cents on the dollar.

So, when the Economy eventually turns up and these assets increase in valaue. FRE will sell them off at a huge profit.

How Goldman Sachs Games the System

Front running....lol is that all. What about Goldman setting the banks up for their huge fall. Convincing them to Securitize their mortgages, while all along playing the otherside of the table. Buying CDS against them in the OTC Market.

Goldman profits from the CDS play are worth Tens of billions and keep rolling in.

Goldman better find a way to return the profits back to the Banks in this country or the full wait of Uncle sam will come crashing down on them.

As far as the SEC is concerned...SEC is worthless,..they allowed Naked Shorting to go on for over 10 years..denying that NSS was even taking place. Then they gave of REG-Sho which was a joke. Then Chric Cox contributed lehmans sharpe drop to NSS.

Then final SEC voted to ban Naked Shorting(NSS)...Voted..? but wait according to the 1932 &33 security Acts NSS was already illegal.

The SEC has been corrupted by the revolving door of wall street...their Inspector General will find those that sold out the integrity of that Agency.

SEC has allowed manipulation by Shorting syndicates to go for years, destroying and stealing America's capital.

Time to Change GSEs' Deal with Treasury

Amen...!!!!! The United States Government did not take a stake in these financials to make money,...that wasn't the primary intent.

The intent was to shore them up until they could get back onto their feet. The U.S. should NOT...be taking a DIVY from... FRE, that money should stay at FRE and be used for operations.

Doesn't make much sense to be taking Capital from the GSE and shoring them up at the same time. The USA doesn't need the 1.1 billion in Divy's . What the USA needs is a strong and healthy Dealer in the mortgage markets.

So, it's time for the Treasury to convert the prefers into common equity.

Fannie and Freddie Shares Soar Though Value in Question

The U.S. Government is buying FRE's Junk,....they are reaping benefits from the yeild curve and asset sales.

The Government had asked FRE & FNM to acquire alot of this paper from the Banks,..so by them(U.S.) taking it on their balance sheet seems appropiate.

Also, why is the U.S. Treasury taking a Divy from FRE, this makes no sense, since the money would be better left at FRE for operational purposes.

The U.S. Treasury didn't help these financials to make money, that wasn't the motivation. By converting their perfers to common they would allow FRE to get back on it's feet,...that much faster.

After all FRE paid the U.S. 1.1 Billion on the last Divy. That money should be kept at FRE for operational expenses.

Time to convert.

The Real Source of BofA's Troubles: Ken Lewis

Ken Lewis is a visionary and like most creative people never understood completely.

People, that have the gripe pipe in their mouths are the ones ,..who were asked to pick the ball up and kept dropping it. To bench these people was the right decesion.

America aleady has to many Belly achers and complainers.-johnc222

Fed Manipulation: Adding to the Bloggers' Case

Speaking of Fed interventions....why is the Treasury taking a Divy from FRE that make no sense. The reason the Government invested into these financials was to hold them up through this tough downturn in the economy. Not to make money.

The 1.1 billion dollars the Treasury is taking from FRE would be better kept at the GSE for operational expensive. The faster FRE gets back onto it's feet the better for everyone.

Time for the Treasury to convert those perfered shares into common.

It like there takeing money from a cripple person, it's a little distasteful...let FRE keep it's 1.1 Billion for it operations.

Has the Fed's Exit Strategy Already Begun?

The U.S. Treasury should not be taking a divy from FRE....1.1 Billion would be far better kept at FRE for operational purposes.

The Treasury should convert those prefered shares to common, after all the Governemnt did not invest in these financials to make money but to support then through a Savage down turn in the Economy.

It's distasteful like taking money from a cripple person.

Time to convert to common.

Enough with the Buffett Critics

The United States Treasury should NOT be taking a divy from FRE to the tune of 1.1 Billion dollars. After all the Government did not invest in these Financials to make money. But, to support them through a savage downturn in the economy.

FRE would be far better off if Treasury converted the prefered into common shares. FRE would be far better off and faster to return to it's feet.

It like the Treasury is taking money from a cripple person.

Time to convert....Tim

Yes, Virginia, There Are No Reserve Requirements (PART 2/2)

why is the writer of this article arguing, for reserves on CD's..? When CD are lock in by time restrictions and can not be withdrawn on a whim.

They can but penalty usually prevents that. CD are an asset to banks capital and not liabilities.

Is Goldman Sachs Really Doing Anything Wrong?

Goldman set-up the Banks along with Deuchter Bank of Germany. They were encouraging Banks to collateralize their MBS and leverage them all the while buying CDS against them.

Their bids in the CDS market where suppose to be private, however most got leaked into the press. The bids were between to MM in the CDS market bidding between one another driving the CDS artifically higher and then the bid was leaked. Naturally, the Market thought the XYZ corporation was going into Chapt.11 since the CDS was soaring...then the naked Shrters took over to finish the job of driving the company into the ground.

I could go on but the rest is history as they say. ...SEC is investigating, however who is investigating the SEC their revolving door between Wall Street and the Commission has contributed to the American people's destruction of the Nation's Wealth.-johnc222

p.s. XYZ Corp. is an example....however see if lehman fits the bill or AIG

Goldman Goes Off-Message

World Stimulus has worked the Trillions that was thrown at the Economies will have a multiplying effect of 2.5-3 X. Goldman know this John Meynard Keynes was right in times of deflation you pay people to dig holes, and then you pay them to fill them up again. I also understand the implications to the dollar. However, most of the money pump will not hit the street,,..i.e. Goldman paying 10 Billion Tarp money back to the Treasury...money never hit the street. So, these inflation Hawks are off base and will be waiint a long time for Gold to hit 2000/OZ.

Pyschology of the market was priced to destruction, insolvency, chapt.11. ,...Well it's NOT going to happen.-johnc222