Johnc222

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.

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.

Wednesday Market Outlook: Failing Automakers Drag Stocks Down

Investment by the U.S. Treasury into GM / Ford is not a bailout. It's helping those firms who keep your country strong.

What the author of this article "FAILS" to realize is that,..the greatest generation would not have been as great. The three most important companies that have contributed to the success of World War II...were Boeing, GM,...and Ford. Without these companies building our Troop Transports, Tanks, Hitler and his animals would have been Goose stepping down Pennsylvania Avenue.

Not only did they build,...but through their R&D facilities they improved and built new, better and improved on the equipment we sent to the Greatest Generation.

Also, people don't know is that Russian now have Bombers in Latin America and Hugo Chavez is doing his best to encourage the country of China to open up a Military base in his country. Southern command need to be worried..!

The Automobile Industry throughout the years in this country history have generated more wealth for the U.S. Treasury then they are asking for at the moment. The health of the Auto Industry is a National Security issue. If you allow these companies to fail you loose close to 3 million jobs ...3 million which includes all the secondary jobs of the suppliers. We would go from 7% Unemployment to 20%. From a Recession into another Great Depression.

The future of America is the survival of the Autos,...we spend $ 700,000,000,000 a year on our gasoline bill and send it to people who want us DEAD both as a people and a Nation. When the automobile companies break off our dependents on Gasoline through their R&D our Nation will have additional tens to hundreds of billions of dollars to invest in Education and Health care and National defense.

God save the USA---john Reply |Report abuse

Wednesday Market Outlook: Failing Automakers Drag Stocks Down

Investment by the U.S. Treasury into GM / Ford is not a bailout. It's helping those firms who keep your country strong.

What the author of this article "FAILS" to realize is that,..the greatest generation would not have been as great. The three most important companies that have contributed to the success of World War II...were Boeing, GM,...and Ford. Without these companies building our Troop Transports, Tanks, Hitler and his animals would have been Goose stepping down Pennsylvania Avenue.

Not only did they build,...but through their R&D facilities they improved and built new, better and improved on the equipment we sent to the Greatest Generation.

Also, people don't know is that Russian now have Bombers in Latin America and Hugo Chavez is doing his best to encurage the country of China to open up a Military base in his country. Southern command need to be worried..!

The Automobile Industry throughout the years in this country history have generated more wealth for the U.S. Treasury then they are asking for at the moment. The health of the Auto Industry is a National Security issue. If you allow these companies to fail you loose close to 3 million jobs ...3 million which includes all the secondary jobs of the suppliers. We would go from 7% Unemployment to 20%. From a Recession into another Great Depression.

The future of America is the survival of the Autos,...we spend $ 700,000,000 a year on our gasoline bill and send it to people who want us DEAD both as a people and a Nation. When the automobile companies break off our dependents on Gasoline through their R&D our Nation will have additional tens to hundreds of billions of dollars to invest in Education and Health care and National defense.

God save the USA---john

An Evaluation of the SEC’s Prohibition on Naked Short Selling

The Author of this Article needs to do more research into the damaging effects of Naked short seliing. Naked short selling is Illegal and has destroyed over 7000 publicy traded companies.

You can not just continue to short a company stock in some cases 2x the Outstanding shares of the company, that drives companies into Chapt.11 by denying company the ability to raise capital in the open market.

Naked short selling is a criminal practice most done by off shore Hedge Funds. It's a crime, if you can not deliver the real certs in a 3 day time frame. The DTCC needs to be investigated there is a huge conflict of interest.