{"id":3360,"date":"2008-07-14T11:11:45","date_gmt":"2008-07-14T18:11:45","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3360"},"modified":"2008-07-14T11:11:45","modified_gmt":"2008-07-14T18:11:45","slug":"update-on-the-fannie-and-freddie-issue","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3360\/update-on-the-fannie-and-freddie-issue\/","title":{"rendered":"Update on the Fannie and Freddie Issue"},"content":{"rendered":"
\n

Okay, here\u2019s an overview of my take on the Fannie Freddie issue:<\/p>\n

\"Do<\/a><\/p>\n

Do you think the Stock Markets like the Fannie Freddie Bailout?<\/p>\n<\/div>\n

Uh, that would be a classic example of an initial elation followed by the let down that comes from looking at the details.\u00a0\u00a0 I\u2019m not going to get into the details of exactly what was offered, but to focus more on the big picture instead.<\/p>\n

So here\u2019s the big picture (in my opinion):<\/p>\n

1. The government has acknowledged officially that Fannie and Freddie are financially in trouble.<\/p>\n

2. They have also indicated that they are not going to let Fannie and Freddie fail.<\/p>\n

3. The Treasury got out their bandaids and have attempted to put a bandaid on the situation.<\/p>\n

4. As part of their bandaid solution, they are essentially obligating the entire government and therefore the tax payers, to pay for Fannie and Freddie\u2019s losses.<\/p>\n

The markets initially said, \u201cYeah!\u00a0 The government isn\u2019t going to let Fannie and Freddie fail!\u00a0\u00a0 Our worries over!\u201d<\/strong><\/p>\n

Then the markets looked at the details and said, \u201cUh, wait a minute, I\u2019m not sure this is really going to work\u2026.\u201d<\/p>\n

The government is going to be able to prop up \u201cpublicly traded companies\u201d by buying stock in them?\u00a0\u00a0 Under what rules?<\/p>\n

What really happened at IndyMac bank?\u00a0\u00a0 Are there really 10,000 people who are going to lose money in a bank?\u00a0\u00a0 What\u2019s that going to do to the rest of the banks?<\/p>\n

If we\u2019re going to bail out Fannie and Freddie, what impact is that going to have on the Fed\u2019s financial position?\u00a0\u00a0 What\u2019s that going to do the overall borrowing costs for the government?\u00a0\u00a0 How much of a hit are us taxpayers going to take for all of this?\u00a0 These are all of the questions that are circulating out there.<\/p>\n

Are there any solid answers?\u00a0 There\u2019s probably only one solid answer.\u00a0\u00a0 Ben Bernanke has done a huge amount of studying of the Great Depression and he firmly believes that the 1927 real estate crash caused the depression.\u00a0\u00a0 You can be certain that he\u2019s going to do everything in his power to make sure that doesn\u2019t happen again.<\/p>\n

Will there be pain?\u00a0 Yep, will there be Read more<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Okay, here\u2019s an overview of my take on the Fannie Freddie issue: Do you think the Stock Markets like the Fannie Freddie Bailout? Uh, that would be a classic example of an initial elation followed by the let down that comes from looking at the details.\u00a0\u00a0 I\u2019m not going to get into the details of […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[],"class_list":{"0":"post-3360","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":3352,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3352\/mortgage-market-week-in-review-fannie-and-freddie\/","url_meta":{"origin":3360,"position":0},"title":"Mortgage Market Week in Review – Fannie and Freddie","author":"Tom Vanderwell","date":"July 11, 2008","format":false,"excerpt":"Okay, here it is Friday afternoon and time to write the \"Mortgage Market Week in Review.\" You know how some newscasts warn you to tell the kids to go in the other room because what comes on next isn't going to be pretty? Well, there aren't any pictures but what's\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10727,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10727\/anyone-think-that-fannie-and-freddie-are-out-of-the-woods\/","url_meta":{"origin":3360,"position":1},"title":"Anyone think that Fannie and Freddie are “out of the woods?”","author":"Tom Vanderwell","date":"December 29, 2009","format":false,"excerpt":"Then check out this chart marking delinquencies at Fannie Mae.\u00a0\u00a0 Calculated Risk: Fannie Mae: Delinquencies Increase Sharply in OctoberFannie Mae reported today that the rate of serious delinquencies - at least 90 days behind - for conventional loans in its single-family guarantee business increased to 4.98% in October, up from\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/straighttalkaboutmortgages.com\/wp-content\/uploads\/2009\/12\/FannieMaeDelinquencyOct.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4039,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4039\/mortgage-market-week-in-review-7\/","url_meta":{"origin":3360,"position":2},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 22, 2008","format":false,"excerpt":"Here we are on Friday again and it\u2019s time to take another look at what\u2019s going on in the mortgage markets. This week we\u2019re going to talk about two economic reports and two big question marks. First the economic reports from the week: 1. The Index of Leading Economic Indicators\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10715,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10715\/interest-rates-have-been-trending-upward-but-what-happens-when-uncle-sugar-quadruples-the-sugar-supply-at-fannie-and-freddie\/","url_meta":{"origin":3360,"position":3},"title":"Interest rates have been trending upward, but what happens when Uncle Sugar quadruples the sugar supply at Fannie and Freddie?","author":"Greg Swann","date":"December 26, 2009","format":false,"excerpt":"From the Wall Street Journal:The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday. The Treasury announced Thursday it was removing the caps that limited the amount of available capital\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4576\/what-happened-fannie-mae-and-freddie-mac-exploded-and-many-bystanders-were-injured-in-the-blast-some-fatally\/","url_meta":{"origin":3360,"position":4},"title":"What happened? “Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally”","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Things fall apart: Kevin Hassett at Bloomberg.com is getting death threats over this news analysis:The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. Why\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4256,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4256\/excerpts-from-the-press-release-about-the-death-of-fannie-and-freddie\/","url_meta":{"origin":3360,"position":5},"title":"Excerpts from the Press Release about the Death of Fannie and Freddie…..","author":"Tom Vanderwell","date":"September 7, 2008","format":false,"excerpt":"Treasury Press Release I have clearly stated three critical objectives: providing stability to financial markets, supporting the availability of mortgage finance, and protecting taxpayers \u2013 both by minimizing the near term costs to the taxpayer and by setting policymakers on a course to resolve the systemic risk created by the\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3360"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3360\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}