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Fannie Needs $10.7 Billion In New Treasury Capital
And the green shoot hits just keep on coming. If you wondered why FNM stock has been flying, here is your answer (and which the nearly departed Lockhart seems to have known a few days in advance:
Aug. 6 (Bloomberg) -- Fannie Mae, operating under a federal
conservatorship, asked the U.S. Treasury for a $10.7 billion
capital investment as its eighth straight quarterly loss once
again drove the mortgage-finance company’s net worth below zero.
A second-quarter net loss of $14.8 billion, or $2.67 a
share, pushed the company to request its third draw on a $200
billion lifeline from the government, Washington-based Fannie
Mae said in a filing today with the Securities and Exchange
Commission.
The company, which posted $86.8 billion in losses over the
previous seven quarters, has already taken $34.2 billion in
federal aid since April.
What a shroomed up circus this economy has become.
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New math.
It actually already exists in the form of imaginary numbers.
What is the square root of a negative number? i2 = -1.
Where i is Fanny. Are they the butt of a joke or something?
http://www05.wolframalpha.com/input/?i=i%5E2
But seriously, i is 'fanny', 'butt' of a joke. LOL !
the next google
actually startpage.com is pretty good and it doesn't track your every move or store forever all of the sites you visit
I stopped googling after I read this:
http://www.gmail-is-too-creepy.com/
Bobby Fischer36
Scroogle.org is the spot you want to go - not to be confused with scroogle.com
Just LOG OUT of google when you are using their search engine. I always keep 2 different browsers open for this very reason. One for Google logged-in services, one for searching relatively anonymously.
Nice try, but all your searches will be recorded against your IP address, which they can then match up against the time/ip address used with the logged in services. Not so bad if you share your IP with a lot of people, but not so good if you don't.
Not only that, but anywhere a Google ad appears will facilitate the recording of your visit - regardless of how you got there.
Google tracks visits to ZH via ads; and come to think of it, anywhere a Google widget appears - like a map, or any site that uses Google analytics for metrics also facilitates tracking. All in, that leaves very few sites one can visit that isn't recorded.
Well that is a green shoot for sure, this will be spun as;
"Gov't eager to help Fannie Mae keep people in there homes, NOW is the time to buy a new home!"
Or maybe...
Upcoming CNBC Article
"New Government assistance for GSE's will mean more loans for new homeowners: Analyst"
Talked to my dad this afternoon, told him about the 3% down, 125% LTV, $8000 allowance and he was incredulous.
They really are trying to prop all this shit up, but it ain't gonna work.
FNM up 60% tomorrow?
Sure, that's only another 10.7B of preferreds in front of the commons.
Sheeeeeeit...
Did they release this after the market closed? Bloomberg updates it's freakin' timestamp w/every update.
I guess since they're hell bent on monetize every debt in the USA, this means FNM is worth an addtional $10.7B! No wonder the stock soared!
Will they please just wipe the shareholder equity clean for starters? I'm so sick of them getting free money and shareholders owning/trading this like nothing happened.
The stock is going up because all the losses go straight on the publics tab, the bondholder who should be taking the losses are walking away flush and the gift that just keeps on giving has to be kept alive.
Bastards!
Strange how bond holders take losses only for unionized car companies. Bizzare. If I was Obama would follow the precedent I have set. Fuck all bond holders. That would be my preamble. It looks like we have a puppet of the democrat party as the El Presidente. The real string pullers are Pelosi, Rahm, and the other caricatures of that party.
I'm curious - why do you feel the bondholders should be wiped out, but the common shareholders can benefit? I mean, if you said they both should take a bath, I'd be right there with you. But my understanding of bankruptcy is bondholders are second in line after employee wages; common shareholders are last to be paid. Bondholders have senior claims, so they should be paid next after the employees. Or are you planning a rewrite to the entire bankruptcy law? What Bambam did with GM was an abomination, and I hope some of the bondholders' suits go all the way to the Supremes.
Of course, he should have let Fannie and Freddie go bankrupt, but what would the result of that have been? A distribution of existing mortgages to the bondholders? How could you ever decide who got what? Every bondholder would be screaming to get the prime ones, and running like hell to get away from the sub-prime, Alt-A, etc. It would be an administrative nightmare, and political suicide.
it would have meant pricing the loans to market, something they still can't do.
Why do you think the bondholders should be first in row? Wouldn't the common shareholder be the first one to go when the company's equity is negative?
Bingo. Sure way to make money. TBTF will always be propped up and receive the money they need. So investing in them is save...until it isn't (i.e. reality sets in).
when will it end for gods sake ... when it will be enough .... jesus fucking christ, greed is good, but not like this ..
You make the assumption that it has not been this way all along. Keep in mind that this recession is the first time that widespread blogging has been available.
In short... What you are seeing right is just an exaggeration of what has been going on since 1989. Also, it will most likely end just like it did the last time. By war. The only difference this time is that the war will be over energy.
I was only 6, but I would contend that it started with President Reagan and has continued unabated since.
Try 1913.
bingo!!!
...and kicked into lightspeed in 1971
Most likely, yes, it will result in war - lest we forget the massive stockpile of nukes that reside in the US of A. One can only speculate what part they have to play in this 'crisis'.
These monstrosities should be euthanized and every penny put into them wiped out.
There is a large disconnect between what should be and what is: Shit canning the bond holders would be tantamount to a default of the USA. The USA is hostage to the effective nationalization of housing! The USA is hostage to the debt market! Kill the GSE's? Not gonna happen any time soon.
Has that 200 billion lifeline already been accounted for in the budget, or does this require new issuance?
I can tell that upward spikes mean something bad is going to happen. I see dead stocks.
M. Night Shyamalan taught me to see dead people and dead stocks.
Don't you understand?
Bernanke is the second coming. He can bring stocks back from the dead.
Lazarus, arise from your grave!
FNM, FRE, AIG, get up and walk!
I keep checking cnbc dot com for the usual breaking news headlines....haven't seen one yet on fanny
You been checking on fanny :-)
update...still nothing on cnbc dot con
unbelieveable, really. this is fnm, big gse, bailout city blah, blah, blah, they lose a fortune this Q and have to go back to gov't for billions more, no mention at all.
the 10 coolest beach houses in the usa is still on the front page top story list but that one has only been there for one week or so.
CNBC == mouth piece of swindlers. They are a virtual reality fantasy providers.
Car for Clunkers will account for a boost of .5 of GDP. Only way for government to justify itself is to boost some more spending.
interesting little problem developed in the senate on cash for clunkers today...it's on drudge and most of the wires. repubs look to have pulled a fast one on the dems
link please ( to lazy to search it for myself )
your worse than my kids cheeky.
http://blogs.abcnews.com/thenote/2009/08/clunkers-program-hits-a-speed-bump.html
lol .. fankoo
clunkers just made it through senate, sans the repub amendments. bill on the way to the wh for obama's signature.
i didn't think that they were that clever....
and no, i am not a democrap
i think i had read somewhere a few days ago that there was some chatter in DC about taking all the crap out of fanny/freddy, setting up a "bad bank", and then merging them into someother godforsaken federal agency with a clean balance sheet for the purposes of repeating exactly what has happened over the past 9 or 10 yrs or so.
naturally, the taxpayers will get to manage and then eat all the shit of the bad bank.
or did i just dream it?
that was when green shoots were for smoking....
ben and tax cheat were conspiring to do that
however it morphed into ppip which is much the
same but with some nuanced differences (ugh)
American citizens are involuntary investors in real estate.
GSE & PPIP = Nationalization
Kinda funny actually. WaPo cited "government officials" saying the fan/fred bad bank idea was one being considered at a meeting of the National Economic Council today.
The press secretary then issued a non denial saying "The story out today is light years ahead of any decision-making process here...Safe to say that many senior administration economic officials learned of this proposal sometime this morning ."
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/05/AR2009080504063.html
http://www.reuters.com/article/marketsNews/idUSN0633536320090806
I just baked some delicious pot brownies.
cash for clunkers limited to peasants who earn $50K or less ?
http://blogs.abcnews.com/thenote/2009/08/clunkers-program-hits-a-speed-b...
What ze fack ?
what ze fack you azk
the ultimate fack my friend ---
Limit the sales to O's majority contingent? The ones that can least affors to buy anything? Freaking brilliant! That will ramp up sales for sure!
We pay people to buy homes. We pay people to buy cars. We pay banks to make loans. R.I.P. America.
I failed to understand why china want to pay for this mess.
they need habitable/arable land.
Actually, with taxpayer-funded reserves parked at the FRB earning risk-free interest, we pay banks to NOT make loans.
Whatever happened to Hank Kimble Paulson's HOPE NOW program?
Those are forming the basis for the Sept-Dec REO's
that was very funny paul!
FNM was a turned into a toxic dumping ground as soon as the banks realized that they had to dump some trash. FNM, like good little fascist kleptocrats, were happy to oblige. I wouldn't be surprised if they're still taking on crap.
At 125 LTV with an 8K down payment
I was thinking MBS, but yeah, the gubmint will refinance anyone, anywhere, anyhow.
'Negative is the new positive'
the sky was yellow and the sun was blue.
OK - so on average they have lost 12.4b/qtr and this qtr they lost 14.8. That is a green shoot. They are getting worse at a slower but increasing rate but things are leveling off so they must be improving. I think I just used CNBC logic. Ouch that hurt my head.
Thank you! I was laughing so hard, I had to put the gun down.
Bet Freddie will be asking for 17-20 here shortly. when they do the stock will pop another 10%
If Morningstar is to be believed, they put fair value of Fannie at ZERO.
I'm sick of all this negative news. Abby Joseph "S&P 1700" Cohen is on Krudlow now and I'm selling my wife to buy every share of CNB available.
God we are so screwed.
please send pic of wife to robotrader.
thank you.
Yum!
Dear USA,
Sorry we helped bankrupt you! We didn't mean to, besides it was really all Goldman's fault!
Love,
Fannie
XOXOXO
Me love you, long time.
this is a good sign, it is better than expected.
I can't wait for the One, in this defining moment, to require web sites to be regulated.
He'll inevitably have to, as it seems there's a complete imbalance between what's on the networks and what's coming from the flea market.
that's what dhs and fema are for.
And the new cyber-security czar. These things are always ridiculously telegraphed, so we will need an equivalent 9/11 to justify the equivalent of the cyber patriot act waiting to be implemented. In the chaos (problem) the people will demand action (response) followed by their next legislation (solution). The patriot act was written before 9/11 :(
i was wondering; did Lincoln have a Telegraph Czar during the Civil war
"Total nonperforming loans in our guaranty book of business were $171.0 billion on June 30, 2009"
$171.0 B in nonperforming loans! I predict stock market still goes up 1% Friday.
why is FNM's market cap only $870MM? Shouldn't it be $200BB?? Green Shootz--it's gonna POP when people realize what it's going to milk out of the gubbment!
Can you say Rent Czar? Mr. Furley collects and then remits to the foreign landlords. At least you pay to a familiar face:)
But Fannie's NPL's are only $171.0 billion that is good news. TD, you are right we are now living in circus and the peasants are slowing catching on - time for a new season of Idol and quickly.
Shoot it! Shoot it!
Take a load off Fannie, take a load for free;
Take a load off Fannie, and you can put the load right on me.
pornographic.
Awesome
Perfect.
Question 4: Issuing 'x' amount of new debt increases GDP 'y' amount--show your work (and your children's):
No need to worry. Yahoo finance has elected to use this green shoot wording of the Fannie news......
In one hopeful sign, Fannie Mae (FNM, Fortune 500) narrowed its quarterly loss to $14.8 billion, or $2.67 per diluted share, down from $23.2 billion, or $4.09 per share, in the previous quarter."
Peanuts. Compared to how much they really need.
But soon real estate values will sky-rocket thanks to Goldman Sachs!
From BNOnews: (http://twitter.com/BreakingNews/status/3170933256 )
Obama says the financial system is no longer on the "verge of collapse" and says actions in the first 6 months have helped stop free fall.
I had a "Mission Accomplished" flashback...
me to, but this ship is sinking, unlike that one ...
yea, give them another 10.5b that's just another half a day of treasury auction (ie money printing and re-cycling thru/via the fed's favorite banker back to the fed). then frandie can buy more toxic loans and revive the mbs market. and wrt that good/bad bank thing, well if u believe that will be like the S&L and RTC exercise, i have a bridge i like u to buy. make no mistake, it will be another exercise for the exclusive benefit 3rd and 4th and 5th branches of our government and u the taxpayers will pay and pay - how u wish u live in communist china : )
Check out The Big Picture site for a 1973 comp chart Very similar. 73% run.
Obama - "the pulse of the sickly US economy is quickening"
Someone pse tell him if the pulse of a sick man quickens, its sign of imminent death.
lower the pulse rate longer the life. This guy is using all the metaphors in the wrong way. Red Pill / Bull Pill - take the blue pill. It looks like he is very intelligent and is sending coded messages to people who understand, to flee.
uhhh, no. he's not intelligent.
High Pulse = Internal Bleeding
Barry-O is a moron with really good teleprompter reading skills.
Paging Mr. WallStreetPro2........
Bloomberg is reporting that Tudor says in his most recent investor letter that this is a bear market rally. As I understand from the article, he sees a possible pullback in September followed by a year end rally...then the bear reasserts itself later in 2010.
Hope ZH will share it on scribd or docstoc if you get your hands on it.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXsz8TNju_Zg
I guess the only way out for Fannie to plunge into HFT. Rock on.
Rumor has it that FNM is buying BAC's refis by the truckload. Turbo Timmy let slip that FNM was going to be the bad bank. Here we go, banks dump garbage on FNM, FNM dumps on taxpayer via usa crap holding corp.
Don't worry it would cost more if they didn't do it. Paulson said so. Hey Turbo how about liquidating the bondholders?
Dude Tudor's analysts use 1930's market movement and compare it to today's market's movement and then predict what's going to happen.... I think Nostradamus can do a better job!
Nostradamus used quatrains, which I believe was an early version of flash trading e.g. seeing stuff before everyone else
Tonight, when Kudlow came on, I turned the TV upside -down.
It worked!!!
Things are getting better!
fellow ZH'ers, for your evening enjoyment: PTJ vid hosted on Chinese website (blocked in US):
http://www.tudou.com/programs/view/XH5W4vffBbY/
This chart was created and posted Mid April.
Guys a genius. Take lessons.
http://img2.imageshack.us/img2/6719/ashortsnightmare.jpg
at the risk of beating a dead horse and i promise i won't bring it up again....
still NOTHING on cnbc dot con of the fanny debacle of today. it's number one on bloomy and i have seen it on the major wire services.
that is all, except cash for clunkers is a done deal, on the way to the wh for obama's signature.
watch Bloomberg or Foxbs - same schtick but different people to learn to despise -- if you've had your fill of Erin, Missey and Kneale - Bloomberg offers Betty, Carol and Kathleen Hayes (all losers extraordinaire) - over at FOxBs they have some of your old CNbs favorites e.g. Alexis Glick, Liz Clayman and a bevvy of other talent -
Wasn't there a time (that is last year) when Barney Frank was assuring the taxpayers that Fannie was well capitalized? What a joke this country has become.
Timmy!
No, not Barney
http://www.youtube.com/watch?v=cMnSp4qEXNM
New from Donald Trump, very timely
http://img91.imageshack.us/img91/3373/trumpreal.jpg
There's your american version of the japanese zombie financials
No longer limited to an anthem at sporting events, Zombie Nation now licenses out the Government Sponsored Entropy theme song.
http://www.youtube.com/watch?v=z5LW07FTJbI
eco friendly, good for (someone's economy) and assured to bring consumers into struggling electronics retailers so as to stimulate the economy -
http://www.samsung.com/us/consumer/subtype/subtype.do?group=televisions&...
http://www.youtube.com/watch?v=RAuOEdttjZQ&feature=related
The problem is that both parties are too busy pimping for the banks to be honest with the American people.
Is that all. No sweat. A crude estimate is about a trillion bucks over the next ten years. Not so much really. Hell, the Treasury is going to ditch 3 trillion of SS obligations so that leaves plenty for GSE MBS holders.
If you are too much of an ahole and wont make a dontation, at least click a few ads.
And if you find yourself saying "Oh yeah, Id rather just do that".
You are a cheap ungrateful piece of shit.
$HOW TYLER $OME LOVE AND DONATE TO THE $ITE.
DONATE
DONTATE
DONATE
DONATE
DONATE
DONATE
Yes, please people, anything you donate is for the best of causes. I could share a local story of how corrupt the media and government are on a local level but don't wanna get too specific here for obvious reasons. However, extrapolate it on up the media/govt food chain and it's the same damn thing.
The net is your only hope, so support those who are fighting like hell to get information out to everyone they can.
Thank you, that is all and I shall donate again during Radio ZeroHedge. I like to pay my bill weekly around here!
> at least click a few ads.
Don't do that. If the ad buyers pick up on that behavior they'll stop buying ad space here. Also... it's just not right. That money's got to come from somewhere. Leave "magic money" to the government!
http://www.scribd.com/doc/898915/The-Prince-by-Nicolo-Machiavelli
Here you go people, a little book suggestion worth a read for better understanding the motives, methods and goals of those who rule us ... some of you might have red it, some of you might have not, but it is definitely one of the best books about Power and its methodology ...
Knowledge doth come of learning well retained, unfruitful else. - Dante
Nice make-over, by the way.
What's $10.B between friends? Would it matter if it were $50B or $100B? It's all play money now. Buy gold, buy silver.
I consulted my magic 8 ball - it said they're going to need more than just the $10.7bn
How did Franklin Raines run this company into the ground? After all, he went to Harvard Collegium- the "greatest" education in the world. Right? another American idiot from Harvard MBA.
$170 Billion in Non-performing loans and we still have 2 year to go. Fannie Mae will pass $1trillion on their own. This is great news.
But Ron Isana says we are in steep recovery at most a 5 to 10% pull back forever!!!!
But Elron Isana says all is well and only green shoots!!
I have just three words for you... "Better than expected" !!!
Step 1: Recapitalize banks through TARP injections to discourage bank runs.
Step 2: Move money from left pocket to right pocket to contain interest rates in the face of unprecedented national debt. Demand that a portion of the cash injection is used to goose stock prices (see step 3 and step 4).
Step 3: Encourage banking interests to use excess cash to print higher stock prices in an effort to rebuild confidence. (It's all about the stock market, stupid!)
Step 4: Lean on major media sources; encourage only positive spin. Supported by higher stock prices, foster an illusion of prosperity and greed among the proles in hope that it will spark consumption.
Step 5: Manipulate economic data in an effort to support stock market valuations.
Step 6: ???
Step 7: Profit
I can't stop laughing... this is the second time I've posted this. Is this really the current state of our country? Was our current economic plan taken from the pages of South Park???
Phase one....collect underpants
Phase two..... ?????
Phase three...... Profit
What do you guys think would be the probability that the Treasury will indeed give Fannie the amount of money it wants?
in my mind that is more a certainty than a probability question, but id go with 99,9%
Tyler & Co. - Check this out, it's actually quite entertaining to see all of the possibilities laid out for the apocalypse. It's interactive and you can choose up to five scenarios at a time, then see if you think your combination is man made or nature and full survival vs no survival on a spectrum between the axis:
http://sdn.slate.com/features/endofamerica/default.htm
Kleptocracies is the word of the day.
Kleptocracies is the word of the day.
the latest from dShort
The 1929 Dow and Now: A Tale of Two Rallies
August 7, 2009
http://dshort.com/articles/2009/dow-and-now.html
http://dshort.com/charts/bears/Dow-and-Now.gif
FANNIE MAE CONTINUES TO DRAW BLOOD FROM THE TAXPAYER
http://truthingold.blogspot.com/2009/08/fannie-mae-drains-another-107-bi...
Thanks for the link. This will replace my lost paperback.
We are at the end game. I think there is going to be a major orchestrated event in the United States far bigger than 911 to cover the financial collapse, and then feed everyone some bullshit about how the Terrorist did it.
A bad bank "solution" for Fannie and Freddie is what I see contemplated. With half of the $12 trillion US mortgage market soundly underwater by 2011, and 9 out of 10 Alt-A's and OptionARM’s in that sort of trouble, I am trying to wrap my mind around the sort of bad bank that will have to be, and what it will mean for the people in the street............Fannie and Freddie have $5-6 trillion in loans on their books. If half go toxic, that's a $2-3 trillion loss right there. Securities written on the loans have undoubtedly been hugely leveraged, and moreover the losses on them are incurred much faster, so we could be easily be looking at $20-30 trillion that is being considered for a transfer to the books of the nation's people..........If you want to be politically involved in America, here's what I suggest. Contact your representative(s), and demand they publicly reveal the total dollar amount in securities and, more broadly, derivatives, that are outstanding anywhere in the vicinity of Fannie and Freddie........Push for an audit of Fannie and Freddie instead of the Fed.
http://theautomaticearth.blogspot.com/