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| Topic: "Affordable Housing Initiative" Still Pounding Housing Marke | |
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Edited by
raiderfan_32
on
Fri 11/06/09 06:14 PM
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Freddie Mac posts $5 billion loss NEW YORK (Reuters) - Freddie Mac (NYSE:FRE - News; NYSE:FRE - News), the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a "prolonged deterioration" in housing. Increases in the value of securities Freddie Mac held over the period helped buoy its net worth, however, erasing its need to tap government funds for a second straight quarter to stay solvent while continuing to buy and guarantee home loans. Including a $1.3 billion dividend payment on senior preferred stock bought by the Treasury in previous quarters, Freddie Mac's third-quarter loss increases to $6.3 billion. The home funding company's loss comes amid a rise in provisions for credit losses to $7.6 billion in the quarter, up 46 percent compared with the previous quarter, as delinquencies worsened on loans it guarantees. Provisions will remain high this quarter, it added. "I would say we are just beginning to see the impact of the chargeoffs on their guarantee book," said Janaki Rao, vice president of mortgage research at Morgan Stanley in New York. Its larger rival Fannie Mae (NYSE:FNM - News; NYSE:FNM - News) on Thursday said it would need $15 billion from the U.S. Treasury after a whopping $18.9 billion third-quarter loss. Results at Freddie Mac and Fannie Mae are widely watched as a barometer of the U.S. housing market since they own or back nearly half of outstanding mortgages. The losses have presented a dilemma to Congress as it wants to protect taxpayers' money but is also counting on the companies to undertake foreclosure prevention efforts which are significantly adding to expenses. In order to ease the terms of loans under the Obama administration's Making Home Affordable refinancing program, the companies must buy the mortgages out of securities, and write down their value. Seeking alternatives to foreclosures also means bad loans sit on their books longer. Despite signs of recovery in home sales and prices, rising delinquencies and unemployment levels mean the housing market is still fragile, Freddie said. High unemployment, foreclosures and excess inventory will impede the recovery "for some time" and push house prices lower, the company said. This means that Freddie Mac's survival will continue to depend on support from the government, which forced the company and Fannie Mae into conservatorship in September 2008. Freddie Mac has taken $51.7 billion since then while Fannie Mae's draw will rise to $60.9 billion. For Freddie Mac, "the positive net worth without the help from the Treasury is significant, but it is too early to say whether an end to conservatorship is ahead," Rao said. Starting in 2010, the company will begin accounting for $1.8 trillion in mortgage-backed securities it guarantees on its balance sheet to meet new guidelines. This will increase interest income and interest expenses, and could have a significant negative impact on net worth, it said. Shares of Freddie Mac were flat at $1.23 in light after-hours trading following the results. http://finance.yahoo.com/news/Freddie-Mac-posts-5-billion-rb-3083454207.html?x=0&.v=3 Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis http://www.youtube.com/watch?v=_MGT_cSi7Rs Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown http://www.youtube.com/watch?v=cMnSp4qEXNM Clinton administration's "BANK AFFIRMATIVE ACTION" http://www.youtube.com/watch?v=ivmL-lXNy64 Burning Down The House: What Caused Our Economic Crisis? Bombshell http://www.youtube.com/watch?v=1RZVw3no2A4 Nancy Pelosi, Barney Frank, and Democrats are Clueless on Freddie Mac Fannie Mae and the financial credit crisis. http://www.youtube.com/watch?v=hxMInSfanqg Democrats LIE about ECONOMIC Bailout - video of Barney Frank DOING NOTHING ABOUT BANKING CRISIS then pointing fingers at Republicans http://www.youtube.com/watch?v=9HQWk1Wp3L4 Barney Frank in 2005: What Housing Bubble? http://www.youtube.com/watch?v=iW5qKYfqALE Watch out! You might get what you're after! Cool Baby! Strange but not a stranger. I. am. an. or_di_na_ry guy.. Burnin Down the House! http://www.youtube.com/watch?v=xNnAvTTaJjM |
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I don't blame the Government, I blame Coorporate GREED!
Citigroup received $25 billion plus $301 billion in a federal backstop that would put taxpayers partly on the hook for the bank’s losses. Bank of America received $45 billion in capital injections and $118 billion in backstops. Then there is American International Group, which has received a $60 billion loan, as much as $152.5 billion in total government support. |
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Edited by
raiderfan_32
on
Fri 11/06/09 06:37 PM
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It's quite obvious you didn't even bother to check out any of the videos i linked you to..
greed yes.. but greed set up by the fiddling with the market in the name of social engineering. social engineering gone horribly afoul.. and the ones that caused it point the fingers at the ones who threw up the warning signs.. warning signs that were outright ignored.. Pelosi, Frank and other House Democrats had plenty of opportunity to get on board and help put the brakes on the runaway train but they kept shoveling coal on the fire instead, calling the brakemen racist.. |
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Toooo funny!!
It was CORPORATE GREED all the way! The real reason for the meltdown was the lack of government oversight and regulation! 
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Toooo funny!!
It was CORPORATE GREED all the way! The real reason for the meltdown was the lack of government oversight and regulation!
was it corporate greed that forced banks to make loans to people that couldnt pay them back? or was it "affordable housing initiatives" begun in the 70s with Carter and ramped up in the 90's by Clinton with the aide of pressure from left-wing special interest groups that caused banks to make loans to people that couldn't pay them back? it seems to me that making loans to deadbeats isn't a smart business move.. unless.... big brother was over there bending the rules and forcing banks to take on the risk.. learn a little bit about what happened, who said what and who whistled past the graveyard.. then talk about greed.. |
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Toooo funny!!
It was CORPORATE GREED all the way! The real reason for the meltdown was the lack of government oversight and regulation!
was it corporate greed that forced banks to make loans to people that couldnt pay them back? or was it "affordable housing initiatives" begun in the 70s with Carter and ramped up in the 90's by Clinton with the aide of pressure from left-wing special interest groups that caused banks to make loans to people that couldn't pay them back? it seems to me that making loans to deadbeats isn't a smart business move.. unless.... big brother was over there bending the rules and forcing banks to take on the risk.. learn a little bit about what happened, who said what and who whistled past the graveyard.. then talk about greed.. Yes, I have read all about it....it was CORPORATE GREED plain and simple. Those that wrote the loans made money...then they sold the loans...then those people made more money when they bundled the loans into MBS...to hide the toxic loans...then more people made more money when they bet/gambled on the bundled loans...then the house of cards started to crumble, so they all took their money and left us holding the bag. And thenm they blamed the people and the politicians. CORPORATE GREED Bro! That's the problem!
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Toooo funny!!
It was CORPORATE GREED all the way! The real reason for the meltdown was the lack of government oversight and regulation!
was it corporate greed that forced banks to make loans to people that couldnt pay them back? or was it "affordable housing initiatives" begun in the 70s with Carter and ramped up in the 90's by Clinton with the aide of pressure from left-wing special interest groups that caused banks to make loans to people that couldn't pay them back? it seems to me that making loans to deadbeats isn't a smart business move.. unless.... big brother was over there bending the rules and forcing banks to take on the risk.. learn a little bit about what happened, who said what and who whistled past the graveyard.. then talk about greed.. Yes, I have read all about it....it was CORPORATE GREED plain and simple. Those that wrote the loans made money...then they sold the loans...then those people made more money when they bundled the loans into MBS...to hide the toxic loans...then more people made more money when they bet/gambled on the bundled loans...then the house of cards started to crumble, so they all took their money and left us holding the bag. And thenm they blamed the people and the politicians. CORPORATE GREED Bro! That's the problem!
plain and simple.. yes we can! or is it just that so many people lack enough critical thinking skills to put more than 2 and 2 together.. and it's just so much easier to roast a scapegoat? never place blame where it belongs but where you want it? right? create a crisis and take advantage of it right, Rahm? |
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I don't blame the Government, I blame Coorporate GREED! Citigroup received $25 billion plus $301 billion in a federal backstop that would put taxpayers partly on the hook for the bank’s losses. Bank of America received $45 billion in capital injections and $118 billion in backstops. Then there is American International Group, which has received a $60 billion loan, as much as $152.5 billion in total government support. and who gave that money to them? /argument. |
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