Fannie and Freddie: A Run on the Bank?

michaelr · 07-12-2008, 12:50 PM

Quote:

Fannie Mae and Freddie Mac are not banks. But like most financial companies, they stand or fall on public trust -- and right now, fewer and fewer people are confident that the two government-chartered mortgage-finance companies can survive on their own.

Here..............

Now it is my understanding the the government may take these two institutions over. That is good for some higher end stock holders but real bad for the rest of us. Not to mention that the government should not be in the banking business at all.

william the wierd · 07-12-2008, 05:31 PM

Mike a 10+ trillion dollar capital loss in Real Estate means that GDP has dropped by around a trillion. The exclusions from core inflation has meant that these losses have not been recognized therefore Gramm could make his no recession comments. But without doctored numbers on inflation and unemployment the picture is not pretty.

michaelr · 07-13-2008, 09:58 PM

Quote:

Originally Posted by william the wierd

Mike a 10+ trillion dollar capital loss in Real Estate means that GDP has dropped by around a trillion. The exclusions from core inflation has meant that these losses have not been recognized therefore Gramm could make his no recession comments. But without doctored numbers on inflation and unemployment the picture is not pretty.

I agree with all of this. There is one thing however William, there are some that has been warning of a meltdown, instead allot of people chose to believe the governments numbers. This has added to the problem. Maybe a commentary in the near future should be along those line, but expanded. Complicity has always helped a wound fester.

william the wierd · 07-13-2008, 11:15 PM

Be glad to send you one. However double check with your lawyers before publication. Harry S. Browne fled to Canada over a similar analysis in the 70s. I don't know the legal code in this area but incitement to bank panic/run at least used to be a federal offense. The Patriot Act too has provisions that apply to banking. I am fairly safe due to the judges appointed to the federal appeals court in Atlanta. With TPA I doubt your disclaimer will provide any protection for a solicited commentary. Just in case you are serious remember to ask to be served Kosher in prison and are conditions are radically different. If I fail null instead of safe the local minimum security federal facility is just 200 miles down I-10 where many of my relatives have done time so I should be cool for the 6-18 months it will take me to get free on appeal or parole. Since I can easily get a bestseller out of the deal if I either do time or go to trail it will help my career. That's my exit strategy. You do need to find out if you have a tails you win, heads you win strategy before publication.

michaelr · 07-13-2008, 11:20 PM

Quote:

Originally Posted by william the wierd

Be glad to send you one. However double check with your lawyers before publication. Harry S. Browne fled to Canada over a similar analysis in the 70s. I don't know the legal code in this area but incitement to bank panic/run at least used to be a federal offense. The Patriot Act too has provisions that apply to banking. I am fairly safe due to the judges appointed to the federal appeals court in Atlanta. With TPA I doubt your disclaimer will provide any protection for a solicited commentary. Just in case you are serious remember to ask to be served Kosher in prison and are conditions are radically different. If I fail null instead of safe the local minimum security federal facility is just 200 miles down I-10 where many of my relatives have done time so I should be cool for the 6-18 months it will take me to get free on appeal or parole. Since I can easily get a bestseller out of the deal if I either do time or go to trail it will help my career. That's my exit strategy. You do need to find out if you have a tails you win, heads you win strategy before publication.

I'll call you soon..o' so very sone...

Libre · 07-14-2008, 03:05 AM

Yeah, it will be another $65-$100B the Fed will print out of thin air devaluing all our money another percent or so (M3 only totals about $11T). Then, as these mortgage backed securities fail, the Fed will own the real property with imaginary money they created. Wake up you fucking morons!!

anonnymous · 07-14-2008, 05:29 PM

more like 300 billion and could go as high as 5 trillion. Bloomberg has some interesting stories on banking today.

michaelr · 07-14-2008, 06:01 PM

Quote:

Originally Posted by anonnymous

more like 300 billion and could go as high as 5 trillion. Bloomberg has some interesting stories on banking today.

Hey, do you know the definition of "It's all over friend"? The banks today hole about 3 bucks to you hundred in deposits, They leverage that. A run on the banks for you funds will end ugly.

anonnymous · 07-14-2008, 06:59 PM

Quote:

Originally Posted by michaelr

Hey, do you know the definition of "It's all over friend"? The banks today hole about 3 bucks to you hundred in deposits, They leverage that. A run on the banks for you funds will end ugly.

thats a fact and reason enough not to have any money in the banks. The FDIC used 10% of its reserves on the indy deal and people over the limit lost 50% of their money. Even if you do leave money in the bank you will still have to wait until the FDIC says you can have it and once the momentum picks up that may take months and anyone over the limit will lose it all.

michaelr · 07-14-2008, 08:35 PM

Quote:

Originally Posted by anonnymous

thats a fact and reason enough not to have any money in the banks. The FDIC used 10% of its reserves on the indy deal and people over the limit lost 50% of their money. Even if you do leave money in the bank you will still have to wait until the FDIC says you can have it and once the momentum picks up that may take months and anyone over the limit will lose it all.

Yep.................