tag:blogger.com,1999:blog-6492542366661862113.post2632984257346773089..comments2023-10-31T01:32:09.169-07:00Comments on The Housing Time Bomb: WSJ: Treasury Close to Fannie/Freddie BailoutJeffhttp://www.blogger.com/profile/04450070920047311928noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6492542366661862113.post-79163113378103849892008-09-06T12:52:00.000-07:002008-09-06T12:52:00.000-07:00growlerThats the million dollar question. I am re...growler<BR/><BR/>Thats the million dollar question. I am reading a lot this afternoon and trying to digest all of this.<BR/><BR/>Its very complicated. Its going to come down to what the Treasury announces. From what I am reading, its going to be announced on Sunday before the Asias markets open.<BR/><BR/>Check back. I will have something up in the late afternoon.Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-52710195875730172952008-09-06T12:15:00.000-07:002008-09-06T12:15:00.000-07:00What are your thoughts for Monday. I guess since ...What are your thoughts for Monday. I guess since it's been "opposite day" for some time now with regard to market activity, we will see one hell of a bounce. <BR/><BR/>How long do you think the bounce will last? Or does it depend on what the bond market does (i.e. take rate higher)?Growlerhttps://www.blogger.com/profile/15157589177057003376noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-4674424644766647702008-09-06T11:08:00.000-07:002008-09-06T11:08:00.000-07:00anonI am right there with you. My top has already...anon<BR/><BR/>I am right there with you. My top has already blown from the fact that these bloated pigs are getting bailed out!<BR/><BR/>I hate to say it but the preferred shareholders are going to be saved from what I have heard.<BR/><BR/>The Treasury can't afford to not bail them out because PIMCO and the regional banks all own this stuff.<BR/><BR/>If the preferred goes to zero many banks might not be able to take the hit due to their fragile state.<BR/><BR/>Lets see what the Treasury does , but my guess is their butts get saved. this whole thing makes me sick to my stomach.<BR/><BR/>Bailout after bailout. No lessons will be learned which means Wall St. will do the same thing all over again down the road.<BR/><BR/>I will have a post up later today.Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-68535453277607241032008-09-06T08:17:00.000-07:002008-09-06T08:17:00.000-07:00If any of the equity holders in Fannie/Freddie get...If any of the equity holders in Fannie/Freddie get anything I will blow my top. What a huge slap in the face that would be for all Americans who are taking on this massive debt. I see the necessity of bailing out the preferred/bond holders, many of these are countries. I guess we have to look out for the residents of these countries who had no control over where their leaders were putting their money. But the same could be said for all the mutual fund investors who don't have much control over where the mutual fund manager puts their money.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-53008460966958991042008-09-05T16:47:00.000-07:002008-09-05T16:47:00.000-07:00What I am hearing out there:I will get into this m...What I am hearing out there:<BR/><BR/>I will get into this more tomorrow. Put this in the rumor category.<BR/><BR/>Fed is going to basically shut down Fannie/Freddie and throw all loans through FHA. <BR/><BR/>Fannie and Freddie will be "run off" to nothing and the Treasury will use its balance sheet to absorb the losses.<BR/><BR/>The Fannie and Freddie " bloated hedge funds" are killed off and FHA is the new Government lender.<BR/><BR/>This would mean Fannie and Freddie common stock are zero's.<BR/><BR/>FHA lending will be OLD SCHOOL. 20% down and 36 DTI or something like that. This means financials and housing prices plummet as old lending standards are implemented.<BR/><BR/>This is a rumor. I factually know as much as you all do. Nothing.Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-85341154080321571552008-09-05T16:41:00.000-07:002008-09-05T16:41:00.000-07:00anonInteresting site thanks for sharing. Yeah rat...anon<BR/><BR/>Interesting site thanks for sharing. Yeah rates are gonna rise. I am hearing all kind of rumors tonight.<BR/><BR/>To your point. I was talkign to an Ex Bear Stearns guy last week. He told me in the early '80's when rates were in the teens that homeowners that owned their house outright would offer mortgages ato prospective buyers at a couple points below the bank.<BR/><BR/>So say Citi is at 16%. Homeowner tells the buyer he will do the same deal at a 14% interest rate. Seller makes a killing and gets a nice check every month until the buyer refi's when rates drop.<BR/><BR/>Its a beautiful deal if you own a home outright.<BR/><BR/>I am sure there are going to be many creative mortgages that are designed when this all plays out anon. its going to be very interesting!Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-36206650350500872282008-09-05T16:34:00.000-07:002008-09-05T16:34:00.000-07:00Hey Jeff,Read your blog everyday. I'm a noob conc...Hey Jeff,<BR/><BR/>Read your blog everyday. I'm a noob concerning all this economics/market stuff but I'm learning fast. I'm guessing that after the bailout loan rates will take a step up. Was just reading an article on Bloomberg about a website that is like EBAY for loans: www.prosper.com I wonder if this idea will take off when more banks start to go under and lending rates increase. Kinda interesting - what do you think?Anonymousnoreply@blogger.com