PDA

View Full Version : freddie and fanny to fail?


TCO
11-07-2008, 07:03:16
http://news.yahoo.com/s/ap/20080711/ap_on_bi_ge/fannie_freddie_capital_concerns

no copycat threads

C.G.B. Spender
11-07-2008, 07:30:58
Zzzzzzzzzzzzzzzz

Dyl Ulenspiegel
11-07-2008, 13:03:35
65x leverage + government agency = programmed failure. :D

Funko
11-07-2008, 13:12:56
This is a difficult thread to copycat well, but I will succeed. Or copycat it badly.

Dyl Ulenspiegel
11-07-2008, 13:36:35
Which is success, too. Negative quality!

Lurker the Second
11-07-2008, 13:44:39
Originally posted by Dyl Ulenspiegel
65x leverage + government agency = programmed failure. :D

They actually aren't government agencies. They were chartered by Congress, but are publicly traded.

Funko
11-07-2008, 13:46:40
My copy cat was truly appalling. Worst thread of the year?

I'm sure you can all do better.

Dyl Ulenspiegel
11-07-2008, 14:07:46
Originally posted by Lurker the Second
They actually aren't government agencies. They were chartered by Congress, but are publicly traded.

I know, same thing.

Dyl Ulenspiegel
11-07-2008, 16:02:30
It also looks like maybe this weekend, Lehman may be plowed under.

Let the good news rolll....

Asher
11-07-2008, 16:10:34
I'm under contract to Lehman until August 4th. I'm enjoying the shit show.

Dyl Ulenspiegel
11-07-2008, 16:18:51
That should be fun.

Asher
11-07-2008, 16:23:19
It is. Mass resignations followed by mass layoffs followed by mass resignations followed by massive reorganization.

They're not doing a single thing right, and it is glorious. Take me, for example. I don't have any work to do. I haven't for a few months. And they know and they don't care. But they still pay me.

Dyl Ulenspiegel
11-07-2008, 16:25:39
Well, accountability and efficient use of resources are alien to government sponsored ponzi schemes.

Lurker the Second
11-07-2008, 18:42:46
As long as the paycheck keeps clearing .....

Asher
11-07-2008, 20:14:33
I'm tentatively scheduled to work on a new application for Credit Suisse starting in August.

I haven't been paying attention to them but hopefully they're more stable.

TCO
12-07-2008, 16:40:41
AAARGH. Let them fail. What's the big deal?

The assets are still there. Worth less than what was counted for, but it's not like they're burning.

The whole thing is just a financing operation. Not like a real going concern that makes a product (and even if it were, going concerns work fine during bankruptcies).

So, some debt-holders take a haircut. And some bankrputcy lawyers get a paycheck. Big deal. That's just part of the haircut itself.

Let the thing unwind. It's really going to be all right...

KrazyHorse@home
12-07-2008, 17:01:44
But don't you know that encouraging home ownership is an unquestionable good?

TCO
12-07-2008, 18:22:14
I'm a renter.

Lurker the Second
12-07-2008, 18:53:10
Even if its not an unquestioned good, pulling the rug out and suddenly radically altering the status quo is an unquestioned bad, imo.

Oerdin
12-07-2008, 19:53:04
Originally posted by Dyl Ulenspiegel
It also looks like maybe this weekend, Lehman may be plowed under.

Let the good news rolll....

IndyMac Bancorp just got shut down by the FDIC. It's supposedly the second largest bank failure in US history and it failed because so much of its assets were invested in high risk mortgages.

Asher
12-07-2008, 20:54:34
You're stating what anyone who has access to the internet, TV, or radio has known for a long time.

Immortal Wombat
12-07-2008, 21:48:43
anyone who has access to the internet, TV, or radio and gives a shit

TCO
13-07-2008, 04:20:25
Let the shit unwind. Sheesh. Most of the people with huge amounts of money in these things are financiers. Let them take it up the ass.

Dyl Ulenspiegel
13-07-2008, 09:38:06
Sheesh. You really think your ruling oligarchy will take losses up the butt without fighting to the last tax dollar?

Lurker the Second
13-07-2008, 12:39:27
How much money do they need I wonder? They probably couldn't even hope to get enough capital from private investors to give them what they need. Having said that, it seems the mortgage mess should have drastically reduced their cash needs. I can't believe the secondary mortgage market has completely died, but maybe it has. I dunno.

TCO
13-07-2008, 13:27:10
1. No reason for Bushies to be subsidizing Goldman and NY financiers. Most of these people are...Democrats. The Republicans are so leery of being portrayed as Herbert Hoover that they have become more bailout-y than Democrats. I'd rathe have a Democrat in the White House and REpublican minority calling the Democrats socialists, than the current sloppy republilcans who just want to get elected. The whole Hill needs an enema. And I guess that makes a nice combo for NY financiers who want to keep their uniformed livery.

2. I love the people who think that there will not be anyone to give mortgages. What morons. You can always raise debt with collateral. Sheesh. Buttlplug morons. Want to beat them until they get that salty taste of blood in the mouth.

TCO
13-07-2008, 13:28:07
WTF good is Bernanke. He's more of an activist than the guy before. And Paulson. Shit, I never trust a Goldman worm. Miss the guy from Alcoa.

Dyl Ulenspiegel
13-07-2008, 16:27:47
Originally posted by Lurker the Second
How much money do they need I wonder? They probably couldn't even hope to get enough capital from private investors to give them what they need. Having said that, it seems the mortgage mess should have drastically reduced their cash needs. I can't believe the secondary mortgage market has completely died, but maybe it has. I dunno.

As for their money need, depends on the haircut. With 5 trillion $ on their book vs 80 billion in capital, a 2 % loss means 20 billion negative equity, which would not be such a big deal. The problem with that is their share price has been killed.

With a 20 % hair cut, you get about 1 trillion, which may be somewhat of a problem.

As for "mortgage mess should have drastically reduced their cash needs", they have essentially become the mortgage market. Their share has risen dramatically, from maybe 50 % to 80 % or so.

TCO
13-07-2008, 18:47:31
Who cares if it's a 20% or 50% haircut. They go into recievership. Write off the bad debts. And in order of seniority, the conterparties get what they get.

Resource Consumer
13-07-2008, 19:23:59
Sid Roolz

Resource Consumer
13-07-2008, 19:25:13
So the new deal is old news also?

Dyl Ulenspiegel
13-07-2008, 19:45:53
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOpdawWiD.bU&refer=worldwide

Maybe we'll get this new bailout just in time for the monday market openings. Huzzah!!!

KrazyHorse
13-07-2008, 20:54:54
I would love to see those two pieces of trash fail. Bloodbath would be hilarious to watch....

KrazyHorse
13-07-2008, 20:55:46
To make it worse somebody should propose repealing deductibility of mortgage interest on Monday.

Would make my week.

TCO
13-07-2008, 22:26:04
Let them fail. It's all a bunch of financier mumbletee-jumble anyhow. people who can pay their mortgages have nothing to worry about. People who hold sound debt, still hold sound debt. People who want new mortgages can get them, for an appropriate price.

Oerdin
14-07-2008, 00:34:34
That sounds nice when you say it but we're talking about two companies which either hold or back 50% of the mortgages in the US. Something like $5.3 trillion worth of mortgages. Letting them go bust would cause a huge shit splatter.

Dyl Ulenspiegel
14-07-2008, 06:36:35
Bailout's here! Woohooo!!!

Summary with a slight bit of opinion:
http://globaleconomicanalysis.blogspot.com/2008/07/operation-rescue-fannie-underway.html

TCO
14-07-2008, 12:35:49
Originally posted by Oerdin
That sounds nice when you say it but we're talking about two companies which either hold or back 50% of the mortgages in the US. Something like $5.3 trillion worth of mortgages. Letting them go bust would cause a huge shit splatter.

That's the same kind of breathy blather that we hear from everyone. Think and make a logical argument. What the fuck is a "shit splatter"? Is that a technical term?

Look. It's a large entity. Unwinding it would be a lot of work (hence some percent of value will go into unwinding it). Also, hence debt counterparties would have to wait for repayment. Big deal.

Oerdin
14-07-2008, 17:12:53
http://img381.imageshack.us/img381/7969/shitfanar4.gif (http://imageshack.us)

TCO
15-07-2008, 02:35:55
The got a smiley for everything. Are there some for sexual acts?

Asher
15-07-2008, 03:12:45
Oerdin's smilie is for some people.

Funko
15-07-2008, 07:59:54
:funko:

King_Ghidra
15-07-2008, 10:18:54
Originally posted by Asher
Oerdin's smilie is for some people.

smiley/smilies

?

mr_B
15-07-2008, 10:51:36
smelly

Asher
15-07-2008, 22:04:14
Originally posted by King_Ghidra
smiley/smilies

?
Welcome to the internet

TCO
15-07-2008, 22:13:18
you're supposed to say internets or intertubes or such

Asher
16-07-2008, 00:11:51
TCO, if you're ever in Toronto or Calgary we need to fuck

Or drink

Or something

TCO
16-07-2008, 02:18:39
It's a date.

Koshko
16-07-2008, 02:27:13
The fun part of all of these bailouts is that we taxpayers are the ones paying for it.

Lurker the Second
16-07-2008, 03:42:01
no way

TCO
17-07-2008, 18:14:43
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/16/AR2008071602433.html?hpid=opinionsbox1

Oerdin
18-07-2008, 02:01:15
Novak is a hack and a dumb fuck.

TCO
18-07-2008, 05:56:51
he gets good dirt. got Plame

Oerdin
18-07-2008, 06:00:54
If by dirt you mean does things of questionable legality (passing on info for people who are breaking the law) then yes.

TCO
18-07-2008, 08:22:16
freepress