Tag Archives: bailout

Fannie Mae, Freddie Mac Fat Cats Slimmed

Executives at Fannie and Freddie made millions of dollars as they drove those institutions into bankruptcy and a massive taxpayer bailout. Taxpayers are on the hook for about $300 billion by 2014 to keep Fannie and Freddie afloat. Now the … Continue reading

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A Third Of American Mortgages Are Underwater

I wonder what would happen if the federal government reduced its role in the mortgage market and let the housing market finds its own balance. I suspect that home prices would drop another 20% in the next 18 months. Foreclosures … Continue reading

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Are You Ready For Fannie Mae, Freddie Mac To Demand More Cash?

Fannie and Freddie are going to run out of money any day now unless they get another bailout from the politicians. I expect that whatever Fannie and Freddie ask for, they will receive. How will the fight over the federal … Continue reading

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Obama Administration Late In Releasing Its Report On Reforming Fannie Mae, Freddie Mac

About 90% of new mortgages are guaranteed by Fannie and Freddie. Without these GSEs, the mortgage market would dry up. The taxpayer bailout of Fannie and Freddie has run to $150 billion and could go as high as $400 billion. … Continue reading

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FHA Chief Warns Against Increasing Downpayments

Low downpayments make it easier for people to walk away from loans. Low downpayments were a key ingredient in all the fancy new mortgages that fueled the housing boom and then bust over the past eight years. The government keeps … Continue reading

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How Many Times Are We Going To Bailout GMAC?

Will the third time be the charm? Is $12.5 billion not enough? GM’s consumer financing arm wants another government bailout. It’s not doing too well, despite all the aid it has already received. GM and Chrysler, two of America’s big … Continue reading

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Stemming Foreclosures

From the New York Times: The idea of helping Main Street has an undeniable appeal. Housing is at the root of the financial crisis, and preventing foreclosures could bring a double-barreled benefit. It would allow families to remain in their … Continue reading

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Is The Bailout On Target?

Here’s an editorial from Newsday: Federal officials may have finally targeted their efforts to the heart of the financial crisis. By guaranteeing deposits and loans and by purchasing bank shares to rebuild reserves, the Bush administration has applied direct heat … Continue reading

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What’s After The Bailout?

Report: The firm wishing to sell their securities to the Treasury would develop a forecast and fully document all their assumptions of the future cash flows of the security. The value of the security is simply the net present value … Continue reading

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Does The Bailout Go Far Enough?

From Denver: Ben Hanna, state director for the community activist group Colorado ACORN, said the bailout is little or no help for those who need it most. “Unless there are real and specific steps taken to address the foreclosure crisis, … Continue reading

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