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Revised FHFA Forecast: Taxpayers To Fund Up To $363 Billion In GSE Losses By 2013
The FHFA has just released it revised "draw" projections for the GSEs, i.e., money which US taxpayers will have to spend to keep the nationalized securitization monsters alive. The reality: after already receiving $148 billion from Tim Geithner's US Treasury, the FHFA now estimates that its downside case will result in additional $220 billion over the next 2 years, for a total of $363 billion through 2013. And since this is based on Moody's housing price forecasts, two things are certain: (i) the "upside" case of only $221 billion in cumulative draws can be heckled, and (ii) the final cost will likely be well north of half a trillion. Of course, by this point it will become clear that Fannie and Freddie have no idea whose mortgages they own (as they will discover post their subpoenaing of JPM and others), and the real cost will be potentially well in the trillions, and require a second full scale nationalization of what are already nationalized companies. Actually there is one more point: by 2013 the US will long be insolvent, the Fed will be monetizing everything (say in your best Tepper voice), and the NYSE and the Zimbabwe Stock Exchange will have merged in futile pursuit of synergies to generate $0.01 of revenue away from the 99.999% dark pool dominanted marketplace, and so what happens 3 years down the line is completely irrelevant.
From the FHFA:
The Federal Housing Finance Agency (FHFA) today released projections of the financial performance of Fannie Mae and Freddie Mac (the Enterprises) including potential draws under the Preferred Stock Purchase Agreements (PSPAs) with the U.S. Department of the Treasury. To date, the Enterprises have drawn $148 billion from the Treasury Department under the terms of the PSPAs. Under the three scenarios used in the projections, cumulative Enterprise draws range from $221 billion to $363 billion through 2013.
“These projections are intended to give policymakers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac,” said FHFA Acting Director Edward J. DeMarco. “These are not predictions; the results reflect the potential effects of a limited set of hypothetical changes in house prices, a key variable driving credit losses for the Enterprises."
And the kicker:
“Much like the recently published Conservator’s Report, FHFA is releasing these projections to enhance public understanding of Fannie Mae’s and Freddie Mac’s financial performance,” DeMarco said.
Perhaps DeMarco can also fill the public in on just how many mortgages held by the GSEs were bought from originators who also sold these to ten other guys.
Here is the basis of the projections, both rooted in Moody's completely worthless expectations of what the housing market does over the next five years:
And here are your taxpayer dollars at work in keeping the housing market about 100% overpriced.
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The taxpayer is a sucker
The taxpayer is a slave.
An entire French airport was blockaded for more than five hours this morning as nationwide protests against President Nicolas Sarkozy’s government intensified.
It came as students threatened to storm the country’s Senate, the upper house of Parliament which is set to rubber stamp a bill raising the retirement age from 60 to 62.
Thousands of trade unionists threatened flights arriving in and out of Marseilles-Provence, one of the principal airports in the south of France.
Read more: http://www.dailymail.co.uk/news/article-1322441/France-riots-Chaos-airports-blockaded-ninth-day-protests.html#ixzz130coU2ye
I have a vision of fat ass Americans on their scooters (see disneyland for how the +300lbs crowd gets around) conducting a nationwide protest.
Of course in my vision this protest will take place in 2011 when the NFL goes on strike.
hey now, we're not all fat..pleasently plump..personally I've never protested a day in my life. I prefer to break thigns and vandalize property. but what is far more dangerous is when good people start behaving badly and not obey the traffic rules, wink wink. off da books already on its way...doing quite well actually..lol, actually live right next to this store..call it a bodega..an example, not my block though..although they all look the same:
http://www.google.com/imgres?imgurl=http://thebrooklynkitchen.files.word...
fucking A..walk by the other day..(check that little basement exit/entrance on the right side there for reference)..fucking guys got chickens in basement. looks like he's got a spawning program going hens and rooster cock. cock is too small for fighting, spurs too small..plus where the cock fights and pitbull fights happen are on the other side of the block
lucies are always on tap, (tabacco tax fucks you running in NYS), seen switch out bootleg dvds for carton packs on tap..thats large scale exchage there. EBT/SNAP card not allowed to buy beer and cigs? no problem, pay me when you can..and oh, you WILL pay. god forbid you have to go to another bodega and develop another relationship...oh the store fronts talk so they know who owes what. scribble that shit on a napkin..move on...nothing to see herrrr!! cops come in do a quick sweep, may catch someone out ducking a warrant, open container, with a lucy (YEAH they bust you for having a loose/single cigarette) but thats for show...the biggest enforcers of this particular system IS the NYPD. some mofo loaned his badge to a gang..think he was the leader...
http://www.nydailynews.com/news/ny_crime/2010/05/07/2010-05-07_cop_was_d...
So........your post is a modern day example of "stream of consciousness" right?
I'll bet it's pretty crowded in there.
Damn we're purpose built to protest and we can't even measure up. Just think of the chaos a couple dozen of WalMart's feature creatures could have blockading an airport. Shit the whole runway. Each one would take 5 cops, 2 wheelbarrows, and a nuclear powered taser to clear the human debris.
those damn rowdy students..it's always them breaking shit. wait, are the blatantly and racially oppressed African immigrants in on this yet? what about the gypsies they were deporting? surely they're into the anarchy causing mix by now, no?
The tax payer is trapped. Vote or not vote, chose Dem or GOP the same result ensues.
The taxpayer better start running for government.
When the citizens of America finally find the courage within to lead the way out of this filthy mess, rest assured the leaders will eventually follow.
They say that revolution always starts at the top.
Maybe this is the way that it is controlled, just as the Dems and Pubs replace each other, but are one and the same ... and maybe it is because only the people at the top have the power to draw people of power together to assemble the needed resources... and dole out "money".
A revolution from the bottom seems as if it would be anarchy. But in anarchy no one from the ruling class or their familaies would be safe from physical harm.
My guess is that TPTB would deputize organized gangs to terrorize and do their bidding, with the normal spoils that come with it ... freedom to rape and pillage. And they would wring their hands as the people are fighting for their lives and distracted from those pulling the strings. Isn't that what history tells us?
But that would be a conspiracy. Are you daft man? There's no such thing as "conspiracy", just "conspiracy theory" along with the crazy and mentally ill who promote such discredited and unpatriotic ideas.
This is a taxpayer "cramdown". All this shit is being crammed down our throats. Bastards.
Then do something about it. File your UCC 1 Financing Statement correctly claiming yourself as the CREDITOR with a security interest in all the assets, real property, debts, liens, marriage, children, and body of yourself, the DEBTOR.
Learn about the debt-based monetary system and the Uniform Commercial Code and start managing your own commercial affairs.
Read this article on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
Any chance we can ditch those losses by running them through Google's Double Irish structure?
No worries, we'll just print, issue more bonds, finance deficits into infinity, and our currency will skyrocket just like Japan.
And we will be luxiuriating in bond yields of 1.5% as the clamoring for AAA-rated, gilt-edged, U.S. Fiatsco notes continues unabated.
http://www.youtube.com/watch?v=k3s8sEYzHWQ&feature=related
Why so bearish on 2013? Everyone knows space aliens are coming in 2012 and word in the market is they have tons of money sitting on sidelines just waiting to pour into an emerging planet market like Earth.
didn't you hear? the mayan 2012 doomsday predictor is off..all bets are off now
The Fannie/Freddie two step Tango is so much more than the grand enabler of the Ponzi. It has been turned into the graveyard of the Ponzi. I'm absoulutely certain financial archaeologists will be working this dumpsite for the next 100 years and still only scratch the surface.
Wake me when they find Jimmy Hoffa.
http://en.wikipedia.org/wiki/Jimmy_Hoffa
Indeed. This will end very badly.
Denninger has a good analysis today on these FHFA calculations.
http://market-ticker.org/akcs-www?post=169867
You mean Mr. KaaaaaaBoom.
I go back and forth on how this going end.
Supernova or red giant.
OK folks, seriously - who the hell junked this and why?
It seems I have picked up a few shadow serial junkers. I wear it as a badge of honor.......simply because to fight it or even complain would only prove I'm the bigger fool.
I'm seeing some red marks on my stock screens. Time to fire up the POMO machine!
So is Uncle Ben going to set the QE2 at 500B or 5T? If it's 500B, I don't think the market will be too happy.
Uncle Ben will go full throttle.......at least $2 trillion.
I'd like to know just how many "taxpayers" are there in the U.S. ? How many people actually have jobs & pay taxes ! I know it's not many ! 200million maybe ? less ?
Well, it is actually future taxpayers because we are simply issuing more debt and funding it with QE. So you pay for it now in real terms through devaluation and your children's children will pay for it later in nominal terms.
Every consider getting dual citizenship?
http://www.sovereignman.com/simon-black/
Bah Humbug! This guy is another distraction. Learn about the debt-based monetary system and the Uniform Commercial Code. File your UCC 1 Financial Statement correctly and as soon as possible.
The entire world is governed by the UCC. You cannot escape the paradigm that is unseen and unknown. Stop being a DEBTOR and take control of your own commercial affairs.
25 million people have filed. They discharge debt and don't worry about all this.
Read this article on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
I saw your post on another thread and found them very interesting. Does the same go for Canadians?
Thinkfree.ca Man on the Land
Education link
Im one of those ficticious Taxpayers. Lets see, I gross around $300 a week. You figure they will take away $250 for taxes.. Yea, Im done. You hear that Elizabeth? Im coming to join ya.
About 130 million. Less than half the population.
why can't they just convert the debt to equity -
and then allow "tax-payers" to take a capital loss on their RE ?
The banks are disappointed in us small people for discussing such naughty ideas as a Tobin tax. Instead they will put a reverse Tobin tax on you. It is HR 4646, the "Debt Free America Act" and is set for fast track during the lame duck session. The only exemptions are stocks, options, and derivatives. Worth reading.
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills...
The naughty children are about to feel the wrath.
I handle my own commercial affairs and have no concern for any legislation they pass. Read this article on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
Dow makes a new higher high on the news!
Up up up@
Just add it to the bill since the whole system one day is going to crumble one way or another. One "expert" recently forecasted a WWIII could be used to target the money centers thereby destroying all financial records and presto no more debt. As crazy as this sounds this seems within the realm of possibility with these henchmen.
Well yea Bill that was WW2's story, got rid of a whole lot of population AND wiped the books clean! That is definitely in our future, who knows when.
I always wanted to test myself in a Kurt Russell-esq "Escape from New York" type world. If they wall off Manhattan, I might hang around for a while and see what happens, keep the rats some company.
Yeah, but we can get enough of them in one spot to actually create a force?. That's the problem. I have kids to feed as do many of us. They sure are keeping me busy trying to juggle it all.. who has time for revolution?
Yep and when it finally IS time for a revolution, its too late. Everyone kept mesmerized by bullshit markets and confidence 'it only goes up now and forevermore' while the criminals fully enslaved you...good luck out in the riots people, youll need it.
No shit. These won't be just the flesh or brain eating zombies.. it'll be both. Headshots and double-taps FTW.
All we need is a paper revoluation for now. Learn the debt-based monetary system and the Uniform Commercial Code. File the UCC 1 Financing Statement correctly and as soon as possible.
Read this article on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
TENP move from 1080 complete as 1188 hit. Short here, stop 1202, target 1142.
????
Hey man why not just call a 2,000 target, you know, for shits and giggles wtf?
Just following up from original look below and a few intervening looks:
I liked the risk/reward at 3 to 1 unleveraged. Of course, microbots pocketed close to 100 bps in ninety minutes today. Fat pitch.
Their goal is to load as many bulls as possible, they HAVE to have that accomplished at this point. Hell I even see Zerohedgers calling for quick 20%+ moves, ultra overconfidence, calm as Hindu cows with Bernankes axe above their neck, they dont care after all theyve been SHOWN 'markets never go down anymore'.
Well the game is at checkmate I'd watch your ass about now.
I think America is 1 presidential election away either from total collapse or a potential reversal at the last minute, take your pick
Future liabilities do not necissarily equate to taxpayer funded. If you cant see there is a default coming, you need to look away from ZH for a second and see reality.
I thought Turbo Timmie only backed the GSEs for three years, and that started almost two years ago.
Congress voted in unlimited backstop for F and F on Xmas Eve 2009.
Not a creature was stirring, so you probably never saw it coming.....until the credit card bills arrive.
I live in a tourist town.. The people are still extremely obese. The revolution will not happen while the bread and circus viewers are so damn fat.
The french are not waddling like fucking penguins in the streets.
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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