Fannie Mae

GDXJ's Epic Rebalance - It's Knife-Catching Time

"In all my years of trading indexes, I have never witnessed that sort of selling in front of a rebalance. These stocks have been pummeled. Devastating.... I am sympathetic to the idea of buying strength instead of extreme weakness. But I am, after all a knife catching addict, and the decline is too hard to resist"

Frontrunning: May 24

  • Trump Meets With Pope Francis After Policy Clashes (WSJ)
  • Fed Minutes to Offer Clues on Debate Over Path of Rate Increases (WSJ)
  • Manchester bomber had 'proven' links to Islamic State (Reuters)
  • U.K. Chides U.S. for Leaking Manchester Bombing Probe Details (BBG)
  • China Handed First Moody's Downgrade Since 1989 on Debt Risk (BBG)

Are US Taxpayers Now On The Hook For Risky Wall Street Real-Estate-Backed Bonds?

This is not a joke... "The BPOs are key elements in securitizations, determining basic figures such as how much rent to charge tenants, how much leverage and risk is embedded in the deal and how much investors could recover if the bonds go sour. Many of the securities were assigned AAA grades and sold off to investors such as pension funds." Is this 2006 or 2017?

"It's Just Crazy" (Again): 2-Bedroom LA House Sells 40% Above Asking

“It can’t be sustained,” said David Berson, chief economist at Nationwide Insurance and a former chief economist at mortgage giant Fannie Mae, referring to the frenzied buying. “It can’t go on forever.” For now, however, the second housing bubble in a decade is back front and center, courtesy of the Federal Reserve once again.

Peter Schiff: Damn The Deficits, Huge Tax Cuts Ahead!

For once, at least, this does not appear to be Trumpian braggadocio. It really may be the mother of all tax cuts. But if passed, what may this bunker buster do to the economy? While I have rarely met a tax cut I didn’t like, this one just may be more likely to send the economy into a downward spiral than it is to send up to orbit.

Distracted Nation "Buys The Dip"

The military frolics of spring have distracted the nation’s attention from the economic and financial dynamics that pose the ultimate mortal threat to business as usual.