K Wave Rider Posted March 5, 2003 Report Share Posted March 5, 2003 HaHaHa, just at the time they should be running for the hills, they are increasing their exposure. The Ponzi game continues. Fannie, Freddie to Beef Up Subprime Lending Businesses "Specifically, Fannie Mae will buy more loans from originators on a ?bulk? basis, meaning as one-off purchases. Currently, Fannie mainly buys subprime loans on a ?flow? basis, in other words as the loans are originated." Link to comment Share on other sites More sharing options...
Bearwithme Posted March 5, 2003 Report Share Posted March 5, 2003 MORE HELIUM PLEASE!!!! Do NOT underestimate what can happen on the other end... Overinflation of housing inevitably means over deflation when the market is flooded with tens of millions of foreclosures all at once. This news indicates that: 1. The bubble might last a little longer. 2. The over inflating with helium will mean it will now make an even louder explosion when the pin of reality is introduced to Mr. Balloon. Link to comment Share on other sites More sharing options...
EasyAl Posted March 5, 2003 Report Share Posted March 5, 2003 MORE HELIUM PLEASE!!!! Do NOT underestimate what can happen on the other end... Overinflation of housing inevitably means over deflation when the market is flooded with tens of millions of foreclosures all at once. This news indicates that: 1. The bubble might last a little longer. 2. The over inflating with helium will mean it will now make an even louder explosion when the pin of reality is introduced to Mr. Balloon. It looks like helium is not sufficient now. Hydrogen, which is lighter, will provide more boost. Unfortunately, H2 is more dangerous. One can make case that FNM and FRE have stepped out of their original mission. When they are chartered, their mission is to provide liquidity for mortgage market. Do not know if the subprime loans fit well with that mission. Link to comment Share on other sites More sharing options...
Bearwithme Posted March 5, 2003 Report Share Posted March 5, 2003 Ahhh... isn't duh.. hydrogen what they used in the Hindenberg? I can see it now... Joe Kernan exclaiming "Oh The Humanity" as the auctioneers are selling foreclosed trophy homes at 20 cents on the dollar to an ever dwindling pool of buyers. Staying drunk to avoid a hangover.. isn't that what croaked Elvis?? Link to comment Share on other sites More sharing options...
Sasquatch Posted March 6, 2003 Report Share Posted March 6, 2003 Unfortunately what is really happening is the GSEs are bailing out the banks with bad loans, so maybe Freddie and Fannie will be flooding the market with inventory sooner than we think.. Link to comment Share on other sites More sharing options...
Metamucil Posted March 8, 2003 Report Share Posted March 8, 2003 Yes, looking like supports will crumble....... RE living on borrowed time......... :grin: Link to comment Share on other sites More sharing options...
Bird D Durr Posted March 8, 2003 Report Share Posted March 8, 2003 Franklin Raines might go down as the biggest asshole in history if this entire things blows up......which it should under fractional reserve banking.............and money market manipulation fraud........................ Well..............maybe not............maybe Sir Printsalot will take the title unanimously...................... Where's Don King?.............maybe he could promote the match................. Link to comment Share on other sites More sharing options...
DrStool Posted March 8, 2003 Report Share Posted March 8, 2003 Doug Noland talks about how the credit bubble ends. (Audio) Link to comment Share on other sites More sharing options...
Bizarro-Greenspan Posted March 8, 2003 Report Share Posted March 8, 2003 Greenie monetizes the whole shootin' match,FRN is now backed by the Homeland RE assets. So,where's the problem? Link to comment Share on other sites More sharing options...
Guest BEARDRECH Posted March 9, 2003 Report Share Posted March 9, 2003 i think i understand the "What Me Worry Alfred e Newman" syndrome with respect to sub-marine-prime lenders;the Freddy Big Maks,the August Piccards of Mortgage lending are simply reflecting the values of the properties themselves which buildings are made of materials provided by Potemkin Village Building Supply Houses for the False-Estate,;they are manufacturers of homes made out of papier-mache',pig bladders,rancid tubs of butter and other assorted bric-a-brac So light of weight are these doll houses that once the RE financial implosion starts, clearing inventory will be a no brainer--hired animal trainer arsonists will simply unleash swarms of animated rats with candles tied to their tails who being well trained,will scurry into these warrens of despair and presto! we're back where we started from--the old reliable--The Cave bdrech Link to comment Share on other sites More sharing options...
Hypertiger Posted March 9, 2003 Report Share Posted March 9, 2003 Ya got me doc very funny... :grin: Link to comment Share on other sites More sharing options...
DrStool Posted March 10, 2003 Report Share Posted March 10, 2003 I am surprised we haven't had more reaction to Mr. Noland's remarks. Link to comment Share on other sites More sharing options...
Guest sigmoidoscope Posted March 10, 2003 Report Share Posted March 10, 2003 GREAT Doc! :grin: But it may be closer to the truth than most imagine. :shocked Reuters Fed's Poole-shocks to Fannie, Freddie could spread Monday March 10, 9:03 am ET WASHINGTON, March 10 (Reuters) - An unexpected financial shock at either of the top U.S. home finance companies, Fannie Mae (NYSE:FNM - News) or Freddie Mac (NYSE:FRE - News) could inflict heavy damage on the broader U.S. economy, St. Louis Federal Reserve Bank President William Poole said on Monday. "Should either firm be rocked by a mistake or by an unforecastable shock, in the absence of robust contingency arrangements the result could be a crisis in U.S. financial markets that would inflict considerable damage on the housing industry and the U.S. economy," Poole said at a symposium on the two companies, known as government-sponsored enterprises. Surprises that destabilize financial markets can and do occur with some frequency, Poole said. Because of the scale of the short-term debt obligations of Fannie Mae and Freddie Mac, a problem at either company would spread quickly, he said. "A market crisis could become acute in a matter of days, or even hours," Poole said. The regional Fed president recommended the U.S. government withdraw one of the advantages it gives Fannie Mae and Freddie Mac to help expand U.S. homeownership -- the ability to lend either firm billions of dollars. This would make clear to markets that the U.S. government feels no obligation to guarantee the companies' debt. Fannie Mae and Freddie Mac should also be required to hold greater capital as a cushion, Poole said. "My sense is that the firms are vulnerable to nonquantifiable risks because their capital positions are so low," he said. Link to comment Share on other sites More sharing options...
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