tag:blogger.com,1999:blog-6492542366661862113.post5128953414300055604..comments2023-10-31T01:32:09.169-07:00Comments on The Housing Time Bomb: Treasury takes over Fannie and FreddieJeffhttp://www.blogger.com/profile/04450070920047311928noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6492542366661862113.post-24533003588325032442008-09-08T13:42:00.000-07:002008-09-08T13:42:00.000-07:00I'd just like to say that this is one of those eve...I'd just like to say that this is one of those events that makes my crystal ball worthless. My ability to predict things on a timely manner is so p***poor right now, I'm quitting for the day!James Bhttps://www.blogger.com/profile/13052914767131527583noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-13837101172610643472008-09-07T20:33:00.000-07:002008-09-07T20:33:00.000-07:00avlThe market is gonna fly tomorrow. My question ...avl<BR/><BR/>The market is gonna fly tomorrow. My question is will it be on fumes by the afternoon or by the end of the week? <BR/><BR/>I think its going to be a rocket shot based on the response in Asia. The Nikkei is soaring. Futures are up huge.<BR/><BR/>Fixed income traders seem nervous tho.<BR/><BR/>I am sure Cramer will be screaming Boooyah tomorrow after the bounce, and Erin Burnett will be thrilled that she found her "silver lining".<BR/><BR/>God CNBC is going to make me sick tomorrow.Jeffhttps://www.blogger.com/profile/12694642495493981729noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-43206394368232886272008-09-07T20:00:00.000-07:002008-09-07T20:00:00.000-07:00And after the head fake, there is this “Paulson Pu...And after the head fake, there is this “Paulson Punt”: The new Congress is to resolve this - “Government support needs to be either explicit or non-existent” - before the Dec 09 expiration?<BR/> “We will make a grave error if we don't use this time out to permanently address the structural issues presented by the GSEs,” Hank says.<BR/>Get real. Campaigning for the 2010 mid-term elections starts in Sept 2009. If the Dems stick with their gift for losing Prez elections, they will be ornery & downtrodden all next year. If the GOP pulls out a close loss in 8 weeks, they will be gunning for gains in Congress in 2010. The “Paulson Punt" indicates he has no desire to be re-appointed...why stick around when all ur alchemy is eventually going to wear off? Those Golden Slacks Guys know when to exit.<BR/><BR/>Yup, global & domestic markets will bounce tomorrow.<BR/>Any bets on how many weeks before the Dow is back to 11,220 and the S&P returns to 1,242 (Fridays closings)?Avl Guyhttps://www.blogger.com/profile/12298355297869341807noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-51417815224951219572008-09-07T19:53:00.000-07:002008-09-07T19:53:00.000-07:00This is a huge ‘head fake’ for housing that will b...This is a huge ‘head fake’ for housing that will be very hard for anyone to top by year end. When all the screaming/shouting/dancing/pouting is done... the bottom line is that the very issues Paulson articulated in his written statement still remain: housing is unaffordable, existing stock is not priced to sell, it is in a “correction” and remains in free fall. Note that he acknowledged it's a correction while he trumpets all his efforts to cease this correction. <BR/><BR/>Hank, it’s called “a correction” for a good reason.Avl Guyhttps://www.blogger.com/profile/12298355297869341807noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-4574284771533575912008-09-07T18:06:00.000-07:002008-09-07T18:06:00.000-07:00oh boy Bye Bye to Wamu CEO: $12-19 billion dollar...oh boy <BR/><BR/>Bye Bye to Wamu CEO: $12-19 billion dollars in losses:<BR/><BR/>The thrift dealt with this year's mortgage meltdown by laying off thousands of employees, closing mortgage centers and cutting its dividend but Killinger admitted mortgage-related losses could total $12 billion to $19 billion this year.<BR/><BR/>Killinger's departure is a "confluence" of these events, said a person familiar with the situation. "It all just adds up," that person said. Company directors, some of them civic leaders in WaMu's hometown of Seattle, had long been loyal to Killinger, one of the industry's longest-serving CEOs, despite calls for his ouster. In January, Killinger admitted to difficulties but said he would remain in place.<BR/><BR/>http://online.wsj.com/article/SB122081162953607945.html?mod=hps_us_whats_newsJeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-77712281977104660662008-09-07T15:45:00.000-07:002008-09-07T15:45:00.000-07:00growlerI just mean the auditors may decide to go i...growler<BR/><BR/>I just mean the auditors may decide to go in and clean up the investment banks just like they did with Fannie/Freddie.<BR/><BR/>I am hearing all kinds of interpretations of this bailout tonight. Its very vague so people are interpreting things differently.<BR/><BR/>Some are guessing the IB's may be able to repackage their level 3 garbage and dump it onto the the GSE's new unlimited balance sheet. Who knows if they could possibly do this.<BR/><BR/>DOW futures are up 200 points. We will bounce in the morning.Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-5879780035317490622008-09-07T14:55:00.000-07:002008-09-07T14:55:00.000-07:00I'm not sure I fully understand "Level 3 pooping i...I'm not sure I fully understand "Level 3 pooping in their pants"? <BR/><BR/>Meaning, the value of MBS will decline even further and IB will be forced to bring them onto their balance sheets? <BR/><BR/>Thanks JeffGrowlerhttps://www.blogger.com/profile/15157589177057003376noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-8981517903654221862008-09-07T14:54:00.000-07:002008-09-07T14:54:00.000-07:00But but but - CNN says..... http://money.cnn.com/2...But but but - CNN says..... http://money.cnn.com/2008/09/07/news/economy/fannie_homeowners/index.htm?cnn=yes<BR/><BR/>I like the first line: "Mortgage applicants rejoice!"<BR/><BR/>They are saying the mortgage rates will go down by 1%.<BR/><BR/>I'm gonna respond like my nephew would text: OMG WTFAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-17530961415554336352008-09-07T14:51:00.000-07:002008-09-07T14:51:00.000-07:00Hi MintonThanks!What a weekend. Minton its going ...Hi Minton<BR/><BR/>Thanks!<BR/><BR/>What a weekend. Minton its going to be interesting to see how the market takes this news.<BR/><BR/>My bet is the "bubble boys" take stocks higher tomorrow.<BR/><BR/>I hate to say it but I think "hyperinflation" is back on the table now that we took on all of this debt.<BR/><BR/>The fact that they are still allowing more lending with relatively easy lending standards is scary. They should have ring fenced this debt into a box and only done 20% down loans going forward.<BR/><BR/>Instead they expand the balance sheets through 2009 and this bubble lending continues. Its crazy@<BR/><BR/>We will never be able to pay this debt back unless we dramatically slash spending. I don't see any signs of that yet.<BR/><BR/>This is a dangerous bailout.Jeffhttps://www.blogger.com/profile/04450070920047311928noreply@blogger.comtag:blogger.com,1999:blog-6492542366661862113.post-59130485709005490482008-09-07T14:29:00.000-07:002008-09-07T14:29:00.000-07:00Great summary - wow, it's really completely unpred...Great summary - wow, it's really completely unpredictable what happens tomorrow. <BR/><BR/>Clearly Fannie and Freddie are going to collapse, but I wonder if LEH will rebound now that Fed seems to rescue almost anything. It also depends on if the market sees massive inflation as a result of this.<BR/><BR/>I've enjoyed your coverage this weekend - keep it up!James Bhttps://www.blogger.com/profile/13052914767131527583noreply@blogger.com