Freddie Mac
News That Matters
Submitted by thetrader on 05/25/2012 03:54 -0400- Activist Shareholder
- Bond
- Borrowing Costs
- Brazil
- Budget Deficit
- Carbon Emissions
- Central Banks
- China
- Citadel
- Consumer Confidence
- Consumer Prices
- Consumer Sentiment
- Core CPI
- CPI
- Detroit
- European Central Bank
- European Union
- Eurozone
- Fail
- Federal Deposit Insurance Corporation
- Federal Reserve
- fixed
- Freddie Mac
- Germany
- Greece
- Gross Domestic Product
- India
- International Monetary Fund
- Italy
- Japan
- Kazakhstan
- Market Conditions
- Meltdown
- Mexico
- Monetary Policy
- Morgan Stanley
- NASDAQ
- Nationalization
- Nikkei
- Real estate
- Recession
- recovery
- Reuters
- Saudi Arabia
- Turkey
- Ukraine
- United Kingdom
- William Dudley
- World Trade
- Yuan
All yu need to read.
- thetrader's blog
- 4 comments
- Read more
- 2458 reads
The Keynesian Emperor, Undressed
Submitted by Tyler Durden on 05/21/2012 14:37 -0400- Capital One
- Central Banks
- Deficit Spending
- Eurozone
- Fannie Mae
- Federal Reserve
- Financial Regulation
- Freddie Mac
- Germany
- Global Economy
- Government Stimulus
- Greece
- Gross Domestic Product
- Housing Bubble
- Housing Market
- International Monetary Fund
- Ireland
- Italy
- Japan
- John Maynard Keynes
- Keynesian Stimulus
- Maynard Keynes
- Monetary Policy
- None
- OPEC
- Purchasing Power
- Real estate
- Reality
- Recession
- recovery
- Stagflation
- The Economist
- Unemployment
- Unemployment Benefits
- Unemployment Insurance
- United Kingdom
The standard Keynesian narrative that "Households and countries are not spending because they can’t borrow the funds to do so, and the best way to revive growth, the argument goes, is to find ways to get the money flowing again." is not working. In fact, former IMF Director Raghuram Rajan points out, today’s economic troubles are not simply the result of inadequate demand but the result, equally, of a distorted supply side as technology and foreign competition means that "advanced economies were losing their ability to grow by making useful things." Detailing his view of the mistakes of the Keynesian dream, Rajan notes "The growth that these countries engineered, with its dependence on borrowing, proved unsustainable.", and critically his conclusion that the industrial countries have a choice. They can act as if all is well except that their consumers are in a funk and so what John Maynard Keynes called “animal spirits” must be revived through stimulus measures. Or they can treat the crisis as a wake-up call and move to fix all that has been papered over in the last few decades and thus put themselves in a better position to take advantage of coming opportunities.
- 54 comments
- Read more
- 9772 reads
JPMorgan: What's the Fuss?
Submitted by rcwhalen on 05/15/2012 08:47 -0400- AIG
- American International Group
- Asset-Backed Securities
- Barry Ritholtz
- Bear Stearns
- Citibank
- Citigroup
- Cognitive Dissonance
- Countrywide
- Credit Crisis
- Deficit Spending
- Deutsche Bank
- Fannie Mae
- Freddie Mac
- Hank Paulson
- Hank Paulson
- Jamie Dimon
- Krugman
- Lehman
- Merrill
- Merrill Lynch
- Money Supply
- OTC
- OTC Derivatives
- Paul Krugman
- RBS
- Robert Rubin
- Wachovia
- WaMu
As either taxpayers or long-term JPM investors, we should be more grateful than sorry about the JPM CIO Ina Drew.
- rcwhalen's blog
- 50 comments
- Read more
- 8373 reads
Philipp Bagus on The Insolvency of the Fed
Submitted by CrownThomas on 05/10/2012 21:24 -0400"should only 2% of the Fed's assets go into default — or if there is a loss in value of 2% — the Fed becomes insolvent"
- CrownThomas's blog
- 39 comments
- Read more
- 6569 reads
News That Matters
Submitted by thetrader on 05/09/2012 07:31 -0400- Bill Gross
- Bond
- Budget Deficit
- China
- Crude
- European Central Bank
- Eurozone
- Federal Reserve
- Ferrari
- Freddie Mac
- Germany
- Gilts
- Goldman Sachs
- goldman sachs
- Greece
- Gross Domestic Product
- India
- International Monetary Fund
- Iran
- Jan Hatzius
- Las Vegas
- M2
- Money Supply
- Mortgage Bankers Association
- Nicolas Sarkozy
- Nouriel
- Nouriel Roubini
- Ohio
- OPEC
- Portugal
- recovery
- Reuters
- United Kingdom
- Yen
- Yuan
All you need to read and some more.
- thetrader's blog
- 4 comments
- Read more
- 3251 reads
US Posts First Budget Surplus In 42 Months, And It Is Less Than Meets The Eye
Submitted by Tyler Durden on 05/07/2012 20:50 -0400This afternoon the CBO reported a number that in itself is quite remarkable: in April, a preliminary estimate of US receipts and outlays showed that the US Treasury posted its first budget surplus in 42 months, or since September 2008. At $58 billion, the surplus was nearly $100 billion more than the the $40 billion deficit from a year earlier. Unfortunately, while superficially this number would have been worthy of praise, digging underneath the surface as always reveals 'footnotes'. Sure enough, in the aftermath of February which saw a record US deficit of $232 billion and March's $198 billion in net outlays, there was a "catch." As the CBO admits: "This April, the Treasury realized a surplus of $58 billion, CBO estimates, in contrast with the $40 billion deficit reported for the same month last year. The results in both years were influenced by timing shifts of certain payments; adjusted for those shifts, the surplus in April 2012 would have been $27 billion, compared with a deficit of $13 billion in April 2011.... The federal government incurred a budget deficit of $721 billion in the first seven months of fiscal year 2012, $149 billion less than the shortfall reported during the same period last year. Without shifts in the timing of certain payments, however, the deficit so far this year would have been only $92 billion smaller." In other words, without various temporal adjustments, the April surplus of $58 billion would have been completely netted out by the cumulative $57 billion in deficit time shifts. However, in an election year, every beneficial item such as this is an extended talking point as the president will gladly take the praise for a number which is indicative of anything but the underlying US financial "health." After all, others can bother with the explanations.
- 32 comments
- Read more
- 7107 reads
News That Matters
Submitted by thetrader on 05/04/2012 08:26 -0400- Australia
- Bank of England
- Black Swans
- Blackrock
- BOE
- Bond
- Brazil
- China
- Citigroup
- Crude
- European Central Bank
- European Union
- Eurozone
- Federal Reserve
- Freddie Mac
- Germany
- Gilts
- Goldman Sachs
- goldman sachs
- India
- International Monetary Fund
- Market Conditions
- Meltdown
- Monetary Policy
- Monetary Policy Statement
- Nassim Taleb
- Quantitative Easing
- RBS
- Real estate
- recovery
- Royal Bank of Scotland
- Unemployment
- United Kingdom
All you need to read.
- thetrader's blog
- 1 comment
- Read more
- 1975 reads
Frontrunning: May 2
Submitted by Tyler Durden on 05/02/2012 07:18 -0400- European Unemployment Rate Rises to Highest in Almost 15 Years (Bloomberg)
- Chinese Activist Leaves U.S. Embassy (WSJ)
- China April bank loans slide 30 pct from March-paper (Reuters)
- Moody's warns against lack of tax hike in Japan (Reuters)
- RIM CEO Bets on BlackBerry Without Keyboard to Challenge Apple (Bloomberg)
- European visits focus on boosting trade (China Daily)
- Martin Wolf- After the bonfire of the verities (FT)
- German Jobless Unexpectedly Up in April as Crisis Flared (Bloomberg)
- Romney Refuses to See China Progress on Yuan (Bloomberg)
- Bolivia Following Argentine Takeover Deepens Regional Divide (Bloomberg)
- Plosser Says Fed Must Guard Against Long-Term Inflation (Bloomberg)
- 2 comments
- Read more
- 2059 reads
Frontrunning: May 1
Submitted by Tyler Durden on 05/01/2012 07:06 -0400- Europe focus of global May Day labour protests (BBC)
- Occupy movement's May Day turnout seen as test for its future (Reuters)
- BofA to Cut From Elite Ranks, will fire 2000 (WSJ)
- Man Group Has $1 Billion Outflows; Shares Slide on Cash Concern (Bloomberg)
- Obama Fails to Stem Middle-Class Slide He Blamed on Bush (Bloomberg)
- Berlin insists on eurozone austerity (FT)
- This must be really good for AMZN's 1.5% operating profit margins: Microsoft muscles in on ebooks (FT)
- Ohio Union Fight Shakes Up Race (WSJ)
- How to Lose $7.8 Billion and Still Be Top of the Rich List (WSJ)
- Hollande Seen Bowing to Debt Crisis in Socialists’ Balancing Act (Bloomberg)
- BP profit falls as Gulf spill costs still weigh (Reuters)
- 12 comments
- Read more
- 2327 reads
Myth Buster: TARP Bailout May Realize A Positive Return for Taxpayers?
Submitted by EconMatters on 04/28/2012 23:45 -0400
Sadly, it looks like the 99% will likely have more than just one lost decade in the course of bailing out the 1%.
- EconMatters's blog
- 22 comments
- Read more
- 4418 reads
Tarp Overseer Debunks Bailout Myths: Big Companies HAVEN’T Repaid Tarp Funds … And Funds to Help Homeowners HAVEN’T Been Paid
Submitted by George Washington on 04/25/2012 13:53 -0400Debunking Bailout Myths
- George Washington's blog
- 108 comments
- Read more
- 13602 reads
Frontrunning: April 11
Submitted by Tyler Durden on 04/11/2012 07:31 -0400- AIG
- American International Group
- Barclays
- Best Buy
- Bond
- China
- Consumer Prices
- Edward DeMarco
- European Central Bank
- Fannie Mae
- Freddie Mac
- Germany
- Housing Bubble
- Hungary
- Institutional Investors
- International Monetary Fund
- Japan
- JPMorgan Chase
- North Korea
- Norway
- Private Equity
- Reuters
- Securities and Exchange Commission
- Swiss Franc
- Turkey
- United Kingdom
- Yen
- Subprime bubble is back: Lenders Again Dealing Credit to Risky Clients (NYT)
- Housing bubble is also back: AIG Is Planning a Return to U.S. Property Investing (WSJ)
- Spain and EU Reject Talk of Bailout (FT)
- Coeure Suggests ECB Could Restart Bond Purchases for Spain (Bloomberg)
- IMF Set to Recognise Shrinking Chinese Surplus (FT)
- Government to Propose New Mortgage Servicing Rules (AP)
- Japan Currency Chief Warns Against Delay Over Finances (Bloomberg)
- The 'Michael Corleone' of Libya (Reuters)
- North Korea Says Fuel Being Injected Into Rocket (Reuters)
- SNB Reaffirms Vow to Cap Swiss Franc (FT)
- 9 comments
- Read more
- 2448 reads
FHFA To Treasury: Forget Principal Forgiveness
Submitted by Tyler Durden on 04/11/2012 00:57 -0400
FHFA Acting Director Edward DeMarco offered some prepared remarks today making it abundantly clear that his preference is for forbearance over forgiveness in the great mortgage hole in the US balance sheet's dam. As Bank of America's Chris Flanagan noted this evening "[DeMarco] effectively nixed the idea of broad-based principal forgiveness by Fannie Mae and Freddie Mac" in his comments on the Treasury's incentives to forgive principal on underwater borrowers. Citing three factors - NPV Impact to taxpayer, moral hazard, and operational costs - the FHFA Director indicated that forbearance (simply put - delaying foreclosure) is effectively a shared appreciation mortgage (SAM) without the operational complexities of a more formal SAM. BofA concludes: "his preliminary remarks on the incentive approach to principal forgiveness of GSE loans [mean] that there will be zero to minimal scale of such an approach." Back to the drawing board for the Treasury (or more forced-through unintended consequences?).
- 62 comments
- Read more
- 5360 reads
Behind 'The Iksil Trade' - IG9 Tranches Explained
Submitted by Tyler Durden on 04/10/2012 09:40 -0400
There is a lot of talk about IG9 these days. We think the JPMorgan 'Iksil' story has a lot more to do with tranches than with outright selling of the index. Noone knows what exactly is going on, but we think selling tranches without delta explains far more than just selling the index, given the size and leverage. Critically, in the end it is all speculation as what (if any) trade they have on but if our belief on this being a tranche exposure (for the thesis reasons we explain) then the explanation is far less scary.
- 19 comments
- Read more
- 14633 reads
Frontrunning: April 10
Submitted by Tyler Durden on 04/10/2012 07:35 -0400- With a 2 Year delay, both FT and WSJ start covering the shadow banking system. For our ongoing coverage for the past 2.5 years see here.
- Trouble in shipping turns ocean into scrapheap (Telegraph)
- First-Quarter Home Prices Down 20.7% in Capital (China Daily)
- Bernanke Says Banks Need Bigger Capital Buffer (Reuters)
- Monti’s Overhaul Can’t Stop Pain From Spain: Euro Credit (Bloomberg)
- Spain Confronts Crisis Threat as Rajoy Seeks Deficit Cuts (Bloomberg)
- Japan’s Noda Announces Anti-Deflation Talks as BOJ Sets Policy (Bloomberg)
- White House makes case for Buffett Rule (CNN)
- Cameron to Make Historic Myanmar Trip (FT)
- 'Time for Closer Ties' With India (China Daily)









