Fannie, Freddie To Pursue Putbacks, Subpoena JPMorgan, Among Others, In Seeking Loan Level Detail

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Wed, 10/20/2010 - 23:25 | 665989 Jeffrey Lebowski
Jeffrey Lebowski's picture

Just before a ship sinks, all the RATS jump off

 

After you, Mr. Bernanke

Thu, 10/21/2010 - 00:55 | 666121 erik
erik's picture

maybe H&R Block got one too.  it'll be neat to see what happens to a NTBTF.  their 5 yr CDS hit 820 today.  right in line with Greece & Argentina.

Thu, 10/21/2010 - 01:17 | 666139 jeff montanye
jeff montanye's picture

reminds me of the tobacco companies that never lost a case, until they did.

Thu, 10/21/2010 - 08:26 | 666343 Careless Whisper
Careless Whisper's picture

when the banks loose, they win. mortgages (mbs) are "insured" with credit default swaps. i suspect that for every mortgage default, it is paid for, about ten times.

does anyone have data on the amount of swaps sold on mbs?

 

Thu, 10/21/2010 - 08:39 | 666364 kaiserhoff
kaiserhoff's picture

Deja vu, all over again.  The counter-party, which may well be AIG won't be solvent.

Thu, 10/21/2010 - 10:30 | 666640 Spigot
Spigot's picture

Howsomeever, the CDS insurers (to parties including GSEs, together with the FRBNY, Pimco, BlackRock and who knows who else) have to pay and pay and pay, my friends :-)

Thu, 10/21/2010 - 08:44 | 666373 snowball777
snowball777's picture

The size of the CDS market was ~$55T at the time of the crisis according to the ISDA.

Thu, 10/21/2010 - 01:37 | 666162 Herd Redirectio...
Herd Redirection Committee's picture

Yep, we are seeing it on the international level with the lack of global agreement on currencies.  Every one knows this is the time to rewrite the rules.  In Germany they are becoming agitated and questioning everything as a result, incl. giving up the benefits of devalued currency that they currently enjoy as the strongest member in the EU

We will see the oligarchs turn on each other more and more, although currently the fear that others will drag you down with them is keeping the charade going for now.  But things have a way of speeding up exponentially, and I'm not just talking about currency debasement.

Any way, check out the new site, PsychoNews, http://psychonews.site90.net   where we like to point fingers and call things as we see 'em

Thu, 10/21/2010 - 08:28 | 666349 Larry Darrell
Larry Darrell's picture

LOL............sorry Herd, but it looks like the Ministry of Truth doesn't want your facts posted

From the site:

Website Under Review

You are seeing this page because the system administrator of 000webhost.com is currently checking this website for malicious content

 

Fri, 10/22/2010 - 16:20 | 670438 Herd Redirectio...
Herd Redirection Committee's picture

Luckily there still exists some semblance of Free Speech and universal human rights, and after about 24 hours of 'review' we are back online, w/o so much as a peep from the host, why the site was 'under review'!!!  We must be doing something right!

http://psychonews.site90.net

 

 

Thu, 10/21/2010 - 07:49 | 666286 High Plains Drifter
High Plains Drifter's picture

Yep, no honor among thieves.

Thu, 10/21/2010 - 08:33 | 666358 pan-the-ist
pan-the-ist's picture

It's too bad this movement was co-opted, or TARP2 would never happen:

http://www.huffingtonpost.com/2010/10/20/karl-denninger-tea-party_n_770108.html

(sorry for the huffpo link, I knew it will hurt a few eyes here.)

Wed, 10/20/2010 - 23:27 | 665992 AccreditedEYE
AccreditedEYE's picture

QE2=TARP2

Thu, 10/21/2010 - 00:11 | 666056 SheepDog-One
SheepDog-One's picture

Already priced in and leveraged 40X...so now what?

Thu, 10/21/2010 - 00:48 | 666106 Glass Steagall
Glass Steagall's picture

This is a fucking farce.

50 trillion dollars world wide chasing 150 trillion plus in derivatives...

Gimme a fucking break.

Unwind all you want. The jig is up.

Thu, 10/21/2010 - 01:50 | 666178 jomama
jomama's picture

luckily, 99%+ of people simply are not paying attention.

Wed, 10/20/2010 - 23:27 | 665993 Spalding_Smailes
Spalding_Smailes's picture

Harry,

The rug just got stapled to the floor .... Lol' Now what ....?

Wed, 10/20/2010 - 23:48 | 666026 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Harry saw the futures go red and needs a moment to go get his bear costume on.

Thu, 10/21/2010 - 00:05 | 666044 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Zed?  It's Maynard.  The spider just caught a coupl'a flies.

Thu, 10/21/2010 - 00:09 | 666050 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bring out the gimp!

Thu, 10/21/2010 - 00:15 | 666062 Spalding_Smailes
Spalding_Smailes's picture

MMMMMMMnnnmMMMMWWWWAAAaaawwwwMMMM.... NOOOOOOOONOOOOOOOOOONOOOOOOOOO!#@Fu*&!!!!

mmmmmmmmmmmmmmmmmmmh...............mmmmmmmmmmmmmmmmmmmmmmmmmmmh....

Thu, 10/21/2010 - 05:54 | 666247 66Sexy
66Sexy's picture

cmon squeal! squeal!

Thu, 10/21/2010 - 00:35 | 666086 Sausagemaker
Sausagemaker's picture

What now? Let me tell you "what now". I'm gonna call a couple of hard, pipe-hitting Feds to go to work on the homes here with a pair of subpoenas and a ink jet. [to Zed] You hear me talking, hillbilly boy?! I ain't through with you by a damn sight! I'm gonna get hyper-inflationary on your ass!

Thu, 10/21/2010 - 01:03 | 666130 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"I'm gonna get hyper-inflationary on your ass!"

Haha

Thu, 10/21/2010 - 01:42 | 666170 Best Satan in Town
Best Satan in Town's picture

Ben's dead baby, Ben's dead.

Thu, 10/21/2010 - 02:17 | 666191 jomama
jomama's picture

the gimp's sleeping.

Thu, 10/21/2010 - 00:46 | 666094 palmereldritch
palmereldritch's picture

.

Thu, 10/21/2010 - 09:30 | 666473 JLee2027
JLee2027's picture

Harry saw the futures go red and needs a moment to go get his bear costume on.

LOL LOL LOL LOL LOL 

Thu, 10/21/2010 - 11:05 | 666758 Milestones
Milestones's picture

Thanks for the morning laugh. No coffee involved fortunately.  Milestones

Wed, 10/20/2010 - 23:32 | 666001 Cistercian
Cistercian's picture

 Swan, black.

Wed, 10/20/2010 - 23:46 | 666024 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The new and popular drink!

Thu, 10/21/2010 - 08:00 | 666297 johngaltfla
johngaltfla's picture

Nah. It's priced in and besides, all the paper is AAA. The ratings agencies told us so.

Wed, 10/20/2010 - 23:33 | 666002 f16hoser
f16hoser's picture

I would love to see "Zombie Banks" feeding on each other! That would be worth the price of admission!

Wed, 10/20/2010 - 23:39 | 666010 whatsinaname
whatsinaname's picture

ought to get new homebuyers mighty excited eh?

Thu, 10/21/2010 - 08:47 | 666377 snowball777
snowball777's picture

About my prospects to buy several years from now, yes.

Thu, 10/21/2010 - 10:13 | 666606 MachoMan
MachoMan's picture

Hopefully you pick the right currency pony and can manage to keep enough of it around to take advantage of deleveraging.

Wed, 10/20/2010 - 23:42 | 666012 Karl Yentz
Karl Yentz's picture

Big fat smoke screen for the biggest fleecing of Amerika yet to come!

Thu, 10/21/2010 - 03:57 | 666227 Punderoso
Punderoso's picture

I have seen this math somewhere before.  Wasn't it used by the BLS for determing the unemployment rate? Oh wait, this was used for projecting the costs of Obamacare. No, I got it, this is how you calculate how many jobs that were saved or created!

Thu, 10/21/2010 - 00:52 | 666113 Glass Steagall
Glass Steagall's picture

Joo got it, meng.

Thu, 10/21/2010 - 09:31 | 666477 JLee2027
JLee2027's picture

Big fat smoke screen for the biggest fleecing of Amerika yet to come!

You can only fleece the uninformed and/or greedy.  You cannot fleece the alerted and angry muther fuckers we have become.

Thu, 10/21/2010 - 10:14 | 666610 MachoMan
MachoMan's picture

what about 95% of americans were opposed to tarp do you not understand?

Wed, 10/20/2010 - 23:43 | 666018 carbonmutant
carbonmutant's picture

Dennis Kneale says it's just a paperwork error...

Thu, 10/21/2010 - 00:02 | 666038 tallystick
tallystick's picture

Back in 2009, Dennis Kneale said the same mortgage was sold multiple times into different MBS.

Thu, 10/21/2010 - 00:18 | 666066 Spalding_Smailes
Spalding_Smailes's picture

Whatever rising anger Eisman felt was offset by the man’s genial disposition. Not only did he not mind that Eisman took a dim view of his C.D.O.’s; he saw it as a basis for friendship. “Then he said something that blew my mind,” Eisman tells me. “He says, ‘I love guys like you who short my market. Without you, I don’t have anything to buy.’ ”

 

That’s when Eisman finally got it. Here he’d been making these side bets with Goldman Sachs and Deutsche Bank on the fate of the BBB tranche without fully understanding why those firms were so eager to make the bets. Now he saw. There weren’t enough Americans with shitty credit taking out loans to satisfy investors’ appetite for the end product. The firms used Eisman’s bet to synthesize more of them. Here, then, was the difference between fantasy finance and fantasy football: When a fantasy player drafts Peyton Manning, he doesn’t create a second Peyton Manning to inflate the league’s stats. But when Eisman bought a credit-default swap, he enabled Deutsche Bank to create another bond identical in every respect but one to the original. The only difference was that there was no actual homebuyer or borrower. The only assets backing the bonds were the side bets Eisman and others made with firms like Goldman Sachs. Eisman, in effect, was paying to Goldman the interest on a subprime mortgage. In fact, there was no mortgage at all. “They weren’t satisfied getting lots of unqualified borrowers to borrow money to buy a house they couldn’t afford,” Eisman says. “They were creating them out of whole cloth. One hundred times over! That’s why the losses are so much greater than the loans. But that’s when I realized they needed us to keep the machine running. I was like, This is allowed?”

 

http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11...

Thu, 10/21/2010 - 01:39 | 666166 StychoKiller
StychoKiller's picture

The holders of all those CDSs are gonna be like a Gahan Wilson cartoon I once saw, in which there's a single soldier standing in the rubble after a holocaust:  "I won!  I think..."

Thu, 10/21/2010 - 07:19 | 666275 Plainview
Plainview's picture

Great excerpt Spalding; what a completely absurd situation.

Thu, 10/21/2010 - 08:51 | 666389 trav7777
trav7777's picture

I wrote several lengthy pieces on synthetic debt over on TF back in 2008.

Synthetic debt became the only way to drive credit growth; a CDS is kind of like a reverse bond except with no initial capital.

Thu, 10/21/2010 - 01:31 | 666157 Miles Kendig
Miles Kendig's picture

Another top pick from Denice The Menace

Wed, 10/20/2010 - 23:44 | 666019 pan-the-ist
pan-the-ist's picture

WOOT!1!!! Get 'em Freddie, you too Fannie!!!

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