Comments on: Fannie/Freddie…Now We Wait For Help or HELL

By: Mr. Mortgage’s Guide to the TRUTH! » CBO to Hank Paulson: You Want ‘Em, You Take ‘Em!

Fri, 12 Sep 2008 04:18:40 +0000

[...] Has Changed. ENRON on SteriodsFannie/Freddie MBS: Have You Ever Seen One? Bill Gross Must Not Have.Fannie/Freddie…Now We Wait For Help or HELL9% of All Mortgages in Default/ForeclosureCountrywide/BofA – A Direct Threat to Borrowers & [...]

By: Mr. Mortgage’s Guide to the TRUTH! » Final Phonie/Fraudie Thoughts Before Market Decides Fate

Mon, 08 Sep 2008 15:11:06 +0000

By: Tony Buzan

Tony Buzan — Sun, 07 Sep 2008 02:44:58 +0000

Mr. Mortgage, with supreme and absolute respect for your stellar work, you are simply absolutely, completely and undeniably mistaken when you say:

“There is every reason to believe that Treasury Bond Yields will shoot higher in the coming weeks and months”

Not even close. Not even close.

Please remember where you heard it.

Treasury bond yields will SURGE LOWER (NOT HIGHER AS YOU SAY) in the coming months.

Let’s touch base in March on this. Fair enough?

Tony Buzan

By: 5755hsa

5755hsa — Sat, 06 Sep 2008 23:50:18 +0000

Here we go. In typical Fed fashion another weekend rescue..NOT!
So the question is, how will this play out??
If the Fed decides to add 5 TRILLION to the taxpayers balance sheet the immediate effect will likely be:
Come Monday morning the politically owned media will spin this into a great thing for the people and economy and we should get a nice rally. I hope I’m wrong here. For just once, just once, I would really like to see the truth being told on what the actual ramifications of this lunacy actually are. People of all walks of life need to act..now… regarding this horible downgrade of the American financial system.

By: Gregg Masters

Gregg Masters — Sat, 06 Sep 2008 22:53:28 +0000

Wow, this is a meltdown considerably worse than sized by the “experts”.

Ackman’s piece is a bit technical for me to follow completely, but it looks like the net trade-off is where the hickey gets placed, i.e., the taxpayer or Fannie/Freddie investors and bondholders.

Pretty ugly, and with tentacles too complex to predict. If we take the collateral value price collapse out of the equation, at least from an underwriting perspective, the pools of securities placed into the secondary market primarily based on LP, DU and proprietary derivatives of the majors (Chase/Zippy), (AMB AMRO/MOAI), etc.., I would imagine the underlying credit quality of at least A paper and Alt A agency conforming and non-conforming ARM and FRMs, to be better than the worse case forecast. Yet, dip into the option ARMs, I/O versions; and then layer in the subprime slime, well, we’re in for considerably more massive sheet write-offs. The question is how big and to what degree will the bailout be triggered.

Of course, this is all a surprise and no one saw this coming! LOL.

By: Marc Authier

Marc Authier — Sat, 06 Sep 2008 22:09:44 +0000

What’s the funniest part of this pseudo-bailout ? You have a bankrupt federal administration bailing out two governement bankrupt GSE. They have to pay back the lenders. But here where the joke is. With what money ? Well ? With money that this same stupid government has to borrow from the same stupid lenders that lent to the same government GSE. It’s like saying to somebody. “Listen ! I am flat broke. Lend me some money so I can pay you back !” I think I am going insane ! Who is the most stupid ? The lenders.

By: sharon

sharon — Sat, 06 Sep 2008 22:00:18 +0000

I am trying to get some fix on how much stock (preferred or common) in FNMA and FHLMC is owned by the US banks and savings and loans. I seem to remember that both these GSE’s were originally capitalized by investments from the banks and savings and loan companies. Does that mean that if the plan wipes out shareholders (common or preferred) that the banks will also take a huge hit to their capital?

By: Mr. Mortgage’s Guide to the TRUTH! » Fannie/Freddie MBS: Have You Ever Seen One? Bill Gross Must Not Have.

Sat, 06 Sep 2008 21:12:15 +0000

[...] Comments kk on Mr Mortgage: The Real Estate ‘Quickening’ is Upon UsMurf on Fannie/Freddie…Now We Wait For Help or HELLG Cox on Fannie/Freddie…Now We Wait For Help or HELLInnocent Bystander on [...]

By: Murf

Murf — Sat, 06 Sep 2008 19:12:39 +0000

“The Gov’t has the ability to do what’ right in here and I can’t imagine that Hank Paulson will want the last thing he does in public office to be saddling the US tax payers with trillions of dollars in debt.”

Sorry Hedgie, I’m afraid Paulson serves a totally different master. He will go down as a hero to the banking establishment and could care less about the American public.

By: G Cox

G Cox — Sat, 06 Sep 2008 19:00:51 +0000

‘These firms bought, intentionally, nearly one trillion dollars between them of subprime and “ALT-A” no-doc or reduced-doc mortgages. These are not prime loans, they are loans made to speculators, and they are the ones most at risk! We must not and cannot bail these people out.’

Sorry, the US has already government guaranteed a bail-out for these people by permitting mortgages to be non-recourse: especially astonishing the case of GSE direct and backed mortgages and even more so in the case of second homes and investment properties.

The US is nuts. One day it will be seen that the US mortgage system cannot be stable over the long term if mortgagees are not legally responsible for their debts.