Fannie Mae and Freddie Mac??

[cuttlefish]

Its going to be interesting to see how much money the treasury will have to inject into the FDIC before this is all over as well. (on top of Fanny and Freddie).

 

[Buddy]

hello,

wouldnt be an issue today Explod, as no-one saves anymore

thankyou
robots

Rubbish!

Robot, judging by you're other posts you are either the ultimate pessimist, and anarchist, or you're taking the mickey out of us.

 

[pepperoni]

Rubbish!

Actually thats a rare robots post I think is right ... saving has been out of fashion for a few years from what ive seen.

 

[Buddy]

Actually thats a rare robots post I think is right ... saving has been out of fashion for a few years from what ive seen.

So, you don't classify superannuation as saving?

In any case, I know lots of people who save (cash that is). Maybe I hang around in the wrong circles.

 

[pepperoni]

So, you don't classify superannuation as saving?

In any case, I know lots of people who save (cash that is). Maybe I hang around in the wrong circles.

agree super is saving - forced to some degree of course.

And no id say you are in the right circles.

 

[wayneL]

I see you've already adjusted it from 64,000 to 64,000,000 to account for inflation but I suspect it might need to be elevated to the 64,000,000,000 question after this is all over.

Sheesh, there are such insane figures being bandied about that 64,000 just seemed so... insignificant.

On another vein, are we showing our age cuttlefish? http://en.wikipedia.org/wiki/The_$64,000_Question

 

[Julia]

Its like allco bailing out centro.

O

Great analogy.

The world of finance is rife with numerous examples of moral hazard problems like insurance, lending and securitization, investment decisions etc. The most classic moral hazard issue arises when greedy lenders throw out due diligence standards and pour money at anybody willing to borrow, in the firm belief that the system will not, or cannot afford to, let them fail.

 

[refined silver]

When the brown stuff hits the fan it doesn't just disappear goes everywhere!

At the moment (with the help of a dumb, and compliant media) everyone thinks it has disappeared. Wait a week of two before people start seeing smelly stuff everywhere.

Eg. The govt has taken over Fannie and Freddie in a "conservatorship"

"

A conservatorship is an entity established by court order that some property or a person be subject to the legal control of another person or entity. Many jurisdictions use the term "guardianship of the person" to refer to the same legal principle. A person under conservatorship is a conservatee or protected person; a person under guardianship is a ward. In most states, a court visitor or some other investigatory person or agency must review the facts of the case and submit a report, usually required to be in writing, to the court. Court visitors are often required to be experts in some appropriate field, such as social work or law. Additionally, states may require a "guardian ad litem" to be appointed for the person. The guardian ad litem often is an attorney, but has more expanded duties and powers than an attorney. Procedures for conservatorship of an adult are often different from those for minors."

from www.answers.com/topic/conservatorship

Read it carefully. Its not yet a guarantee without reservation, which is what the Chinese, Russians, etc need to keep buying US agency debt and not dump it, which would send interest rates soaring, USD plunging, and US econ, housing, stock mkt, into deep depression.

Also,

The "conservatorship" counts as a bankrupcy and has triggered a Credit Default Swap (CDS) default. This is a $62t mkt and prob the biggest entity has had a credit event and triggered all the CDSs written against it.

http://www.ft.com/cms/s/ed1e14c6-7d...tml?nclick_check=1&_i_referer=&nclick_check=1

and

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajsxbVS.W2lQ&refer=home

Finally, as mentioned by others, hundreds of US banks hold ordinary and preferred shares in Fannie and Freddie which have just been slaughtered. They were already in trouble, whats this done to their capital base??

 

[pepperoni]

Read it carefully. Its not yet a guarantee without reservation, which is what the Chinese, Russians, etc need to keep buying US agency debt and not dump it, which would send interest rates soaring, USD plunging, and US econ, housing, stock mkt, into deep depression.

Id say the world superpowers will be looking very closely at ways the markets can be rigged to their advantage and disadvantage night now.

Next few months could be a sort of new cold war fought in the markets.

 

[dhukka]

Finally, as mentioned by others, hundreds of US banks hold ordinary and preferred shares in Fannie and Freddie which have just been slaughtered. They were already in trouble, whats this done to their capital base??

Yep, Wells Fargo will take in excess of $400 million in writedowns.

Wells Fargo Says It Will Take Third-Quarter Write-Down On Fannie, Freddie Holdings

Wells Fargo & Co. said it will take a third-quarter write-down on its investments in securities issued by Fannie Mae and Freddie Mac.

The nation's fourth-largest bank by stock market value said its perpetual preferred investments in Fannie and Freddie are included in securities available for sale at a cost of $336 million and $144 million, respectively. Those securities now trade at 5% to 10% of their original value.

 

[cuttlefish]

On another vein, are we showing our age cuttlefish? [URL="http://en.wikipedia.org/wiki/The_$64,000_Question"]http://en.wikipedia.org/wiki/The_$64,000_Question[/URL] :eek:[/QUOTE]


[I]The $64,000 Question was a popular United States television game show from 1955 to 1958[/I]

:eek: :o I must have heard the expresssion from my parents :D

 

[wayneL]

It seems the fanniefred intervention hasn't lived up to the PollyAnna's expectations.

Cuttlefish,

I only ever saw re-runs.

 

[Porper]

It seems the fanniefred intervention hasn't lived up to the PollyAnna's expectations.

Cuttlefish,

I only ever saw re-runs.

Thought this was quite interesting.

Basically all the intervention and "good news events",and the price action afterwards.

Anybody see a trend here ?

 

[Aussiejeff]

Thought this was quite interesting.

Basically all the intervention and "good news events",and the price action afterwards.

Anybody see a trend here ?

Reminds me a bit of the "Great Aussie Tinny Race" up Darwin way every year. Lots of desperate, frantic - but ultimately fruitless bailing - with only one possible outcome....

 

[wayneL]

Reminds me a bit of the "Great Aussie Tinny Race" up Darwin way every year. Lots of desperate, frantic - but ultimately fruitless bailing - with only one possible outcome....

The best allegory I've ever heard. ROTFL

 

[CanOz]

Is this the "orderly exit" that they were all looking for?

Cheers,



CanOz