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FatalWishes
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Fannie, Freddie Are Too Big to Fail, Lawmakers Say
| Quote From Source: | July 10 (Bloomberg) -- Fannie Mae and Freddie Mac, the largest buyers of U.S. home loans, are too big for the government to let them fail, leading Republican and Democratic lawmakers said.
The government-chartered companies, which own or guarantee about half the $12 trillion of U.S. mortgages, can count on a federal lifeline, said Republican Senator John McCain, of Arizona, and Democratic Senator Charles Schumer, of New York.
The remarks by the presumptive Republican presidential candidate and the head of the congressional Joint Economic Committee followed a slide in the firms' shares to the lowest level since 1991. They indicate Congress would push the administration to use government funds to prevent the companies from failing and threatening a deeper housing recession.
| | Click source url to view entire story. |
Source Bloomberg
Source URL:
http://www.bloomberg.com/app...yKESZ2qk&refer=worldwide
U.S. officials rush to reassure markets about loan agencies
http://www.iht.com/articles/2008/07/10/business/econ.php
But ....are they not Insolvent? Insolvent means they are unable to meet debt obligations. I guess the Tax Payers are going to have to bail them out. I don't think we can afford much more of this.
They should take the warning labels off of everything and let stupidity sort itself out.
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Indy
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Too big to fail means our fake economy needs to be propped up with worthless cash.
"I think God gives us children so death won't come as such a disappointment." - Two and a Half Men |
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FatalWishes
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Yeah..now look what is happening...
U.S. Weighs Takeover of Two Mortgage Giants
http://biz.yahoo.com/nytimes/080711/1194793612725.html?.v=4
Can we even do that legally? I mean WTF??? That really isn't fair to all the business owners that have failed. where was their bailout??
Well I hope everybody bought some gold on that nice little dip because its up big today. So is oil. Something has the speculators spooked. Must be the financial mess and Isreal wanting to smoke out Iran. If they do, that should get gas to 10.00 a gallon really quick.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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I get a funny feeling we may visit the 10k's on the DOW today. They just need to push this market under quickly and get it over with. Then we can trade sideways or go up a bit until the last 1/3 of write offs hit.
Fannie Mae, Freddie Mac, Lehman Brothers and a lot of other financial stocks are getting the shit kicked out of them seriously this morning.
Freddie and Fannie are both down almost by 50%
FEDERAL NATL MTG ASSN COM (Fannie Mae) FNM
Last: 7.05 Change: -6.15 (-46.59%)
FEDERAL HOME LN MTG CORP COM (Freddie Mac) FRE
Last: 4.43 Change: -3.57 (-44.62%)
Three days ago I posted this...
Fannie Mae (FNM)
Current stock price, 12.51 52 wk High $70.57
Freddie Mac (FRE)
Current stock price, 7.59 52 wk High $67.20
This day is setting up for the great crash of 08. Will this be black Friday??
LEHMAN BROS (LEH)
15.29 Down 2.01 (11.62%)
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Well we have visited the 10k's. I wonder if we will stay there or go down more....or go up? Lets see where we close today. I cannot imagine people will be wanting to hold their shares of Fannie Mae and Freddie Mac after what happened to Bear Stearns over one weekend. They may do the same to Lehman's as well. I know I'd dump my shares since it is Friday. Lets see what happens.
Dow 10,992.25 -236.77 -2.11%
Nasdaq 2,215.48 -42.37 -1.88%
S&P 500 1,228.42 -24.97 -1.99%
And the market says "Weeeeeeeeeeee all the way down."
I really fell sorry for the shareholders at Freddie Mac, Fannie Mae, and Lehmans.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Seems as though we are crawling back up from the Abyss. Hopefully things will turn out well today. I don't see a chance of turning green, but hopefully on a much higher note then where we have been.
The last hour of trading will be interesting to watch, specifically some banking/financial stocks. Many people are jittery about what happened at Bear Stearns and how they disappeared over the weekend and people went broke in two days.
I sure hope things are more stable. I'd hate to see a large sell off in the last hour as fear forces people to sell and dump shares going into the weekend.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Housing crisis: Fears for 100,000 jobs as sector suffers 'worst conditions for 50 years'
| Quote From Source: | Up to 100,000 jobs could be lost in the house building sector, according to industry figures, who have described conditions as "worse than at any time since the Second World War."
Their warning came as Barratt Developments confirmed it was cutting more than a thousand workers – the fifth house builder this week to announce major job losses as a result of the dramatic slump in demand for new houses.
The credit crisis, which has meant banks and building societies have stopped offering cheap mortgages, has created an unprecedented slump in demand, according to the industry.
Roger Humber, policy advisor at the House Builders Association, said: "It is uniquely bad. There is nothing to compared it to since the end of the Second World War.
| | Click source url to view entire story. |
Source Telegraph
Source URL:
http://www.telegraph.co.uk/m...y/2008/07/10/bcnhouse410.xml
I wonder how come this is not being reported here. If this is happening across the pond, how many are gong to be wiped out here?
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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I believe we are heading green for the day. Wow we were down hard. Volume has increased considerably. This should turn out to be a good day. I bet there are empty Maalox and Pepto Bismol bottles all over the trading room floor after today.
And now we are heading backing to the red zone. What a day.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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| Quoting FatalWishes - posted on 7/8/2008 at 07:14 |
Well, Bank United is now a penny stock and Downey Financial is right behind it.
Bank United (BKUNA )
Current stock price,.77 52wk High $22
Washington Mutual
Current stock price, 4.95 52wk high $44.04 (This bank is huge and just asset wise it is worth $16.00 a share. It could still fail, but we would have to be heading to the apocalypse and by that time we would have bigger issues than worrying about this bank failing)
Downey Financial (DSL)
Current stock price, 1.69 52 wk High $69.49
__________________________________________
Indy Mac Bank (IMB) FAILED/DONE
Current stock price, .10 52 wk High $31.32
First one to go off my list. Who is next???
___________________________________________
National City Corp (NCC)
Current stock price, 4.42 52 wk High $33.54
Fannie Mae (FNM)
Current stock price, 10.25 52 wk High $70.57
Freddie Mac (FRE)
Current stock price, 7.75 52 wk High $67.20
First Horizon National (FHN)
Current stock price, 6.70 52 wk High $39.03
Lehman Bros (LEH) Brokerage, not a bank but important
Current stock price, 14.43 52 wk High $74.09
Firstfed CP (FED)
Current stock price, 4.85 52 wk High $59.10
Franklin Finance CP (FBTX)
Current stock price, .42 52 wk High $14.39
Merrill Lynch (MER)
Current stock price, 26.41 52 wk High $89.23 (Note, Not sure if MER will fail, but their EPS is -14.23 and they are dropping fast. They report earnings on Thursday. This will be a key indicator to watch. That is the reason it is on the list.)
Last updated July 11, 2008. There are some pretty weak looking banks out there.
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Well Indy Mac Bank has failed and is now closed.
The second-largest bank failure in U.S. history
http://www.latimes.com/busin...12-2008jul12,0,6071779.story
Any bet takers? Who is next?? Bank United? Downey Financial?
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They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Regulators to Schumer on IndyMac: Please shut up
| Quote From Source: | Sen. Charles E. Schumer publicly taunted bank regulators last week about IndyMac Bancorp's financial condition, which helped trigger a sudden outflow of deposits from the Pasadena thrift. Now the New York Democrat is getting some harsh blowback from one current and one former regulator.
Their message, distilled: Zip it, Chuck.
As noted here on Monday, Schumer sent letters to the Office of Thrift Supervision, the Federal Deposit Insurance Corp. and the Federal Home Loan Bank of San Francisco, saying he was "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers."
| | Click source url to view entire story. |
Source LATIMES
Source URL:
http://latimesblogs.latimes....y_co/2008/07/sen-charles-e-s.
Well they can blame who they want. I think the senator's comments just sped things up.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Dollar Falls to Within Cent of All-Time Low on Fannie, Freddie
| Quote From Source: | uly 12 (Bloomberg) -- The dollar dropped to within a cent of the all-time low against the euro on concern losses at Fannie Mae and Freddie Mac may deepen even after policy makers said the companies aren't facing a government takeover.
The currency posted its third weekly decline in four weeks after President George W. Bush, Treasury Secretary Henry Paulson and Senate Banking Committee Chairman Christopher Dodd yesterday damped talk of a government takeover of the two largest mortgage-finance companies. The greenback dropped against the yen and reached a 25-year low against the Australian dollar. Crude oil rose to a record above $147 a barrel.
''Risk aversion is biting the dollar given the concern surrounding Fannie and Freddie,'' said Steven Englander, a currency strategist at Lehman Brothers Holdings Inc. in New York, who covers the 10 biggest industrialized nations. ''There's still a lot of dollar-negative sentiment in the market.''
| | Click source url to view entire story. |
Source Bloomberg
Source URL:
http://www.bloomberg.com/app...=a4kpsU8pP4QY&refer=home
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They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Hopefully everybody listened and bought some gold from when I posted on July 2nd. Its up over $20.00 an ounce since then.
Top 5 Gold Stocks are;
Barrick Gold Corporation (ABX)
Goldcorp Inc (GG)
Agnico Eagle Mines Ltd (AEM)
Royal Gold Inc (RGLD)
Newmont Mining Corp (NEM)
I'm loading up on ABX Monday.
I'd love to have a crystal ball to see what is going to happen on Monday with Indy Mac Failure looming. I'd be scared shit less to own any shares of stock on my bank list I posted above. Either things will be calm or there will be a run on the stocks and some of the banks. There are some financial stocks that are in really bad shape that are left and it won't take much to tip them over.
http://www.indymacbank.com/
We need Ron Paul or this mess will never be fixed. Since we won't get Ron Paul, this mess will only get worse.
http://www.youtube.com/watch?v=Ritv_YrCJak
And to top that everything off, the rest of the world thinks our system of AAA rating is now a joke.
http://www.telegraph.co.uk/m...oney/2008/07/12/cndow112.xml
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Fannie, Freddie to Get $15 Billion From U.S., the Times Says
| Quote From Source: | July 12 (Bloomberg) -- Henry Paulson, the U.S. Treasury secretary, is planning a $15 billion capital injection into U.S. mortgage companies Fannie Mae and Freddie Mac, the Times of London reported, without citing anyone.
The plan is ''high'' on the list of solutions to the nation's mortgage crisis, the newspaper said. In exchange for the capital, the U.S. government would get a new class of shares, the newspaper reported, citing no one.
Paulson's plan also would allow the two mortgage companies to use the Federal Reserve's discount window so they can borrow from the central bank, the Times reported.
| | Click source url to view entire story. |
Source Bloomberg
Source URL:
http://www.bloomberg.com/app...=adGvdKB7NpAg&refer=home
Looks like they are afraid what will happen Monday so they are proping these two up to prepare for it.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Government not expected to help more companies
| Quote From Source: | NEW YORK (AP) - The U.S. government is signaling it won't throw a lifeline to struggling financial companies - except for mortgage linchpins Fannie Mae (FNM) and Freddie Mac (FRE) - marking a shift to a new and potentially more volatile phase of the credit crisis.
Such an approach could mean beaten-down investment banks like Lehman Brothers Holdings Inc. (LEH) and regional banks must now fend for themselves as they try to recover from billions of dollars in mortgage-related losses. That is bound to unnerve Wall Street, already anxious as it awaits financial companies' earnings reports that are expected to be down a stunning 69 percent from a year ago when all the numbers are in.
The short-term uncertainty about Freddie Mac and Fannie Mae - which together hold or guarantee half the nation's mortgage debt - was to an extent relieved on Sunday. Federal officials again threw their support behind the government-sponsored enterprises; the Treasury pledged to expand its current line of credit to the two companies and the Federal Reserve said it will provide additional loans if needed.
| | Click source url to view entire story. |
Source AP NEWS
Source URL:
http://apnews.myway.com/article/20080713/D91T7VL00.html
Well game over. Government is out of money and ammo. They need to let them fail so we can start over sooner. There are going to be a LOT of failures coming up. Over 100 banks are probably going to fail and soon.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Many more bank failures likely after IndyMac
| Quote From Source: | NEW YORK (Reuters) - U.S. banks may fail in far greater numbers following the collapse of the big mortgage lender IndyMac Bancorp Inc. (IMB), straining a financial system seeking stability after years of lending excesses.
More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy, who had in February estimated no more than 150.
Banks face pressure as credit losses once concentrated in subprime mortgages spread to other home loans and debt once-thought safe. This has also led to investor worries about the stability of mortgage finance companies Fannie Mae (FNM) and Freddie Mac (FRE); IndyMac is not related to either.
| | Click source url to view entire story. |
Source Reuters
Source URL:
http://www.reuters.com/article/idUSN1336701420080713
I need to get my hands on that failure list and see if my Bank is on it. Only bank I feel safe with right now is Wells Fargo and I would have no problems banking there.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Looks like the market may be o.k. tomorrow due to Paulson asking Congress permission to shore up Fannie Mae and Freddie Mac.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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America Is for Sale
Well there goes another one of our most recognized names in America. This Bud's for EU. Budweiser is no more ours. It is now headquartered in Belgium. Sold for $70.00 a share.
I guess Kasey Kahne will be driving around with Waffles painted on his hood now.
Belgian brewer InBev to buy Anheuser-Busch for $52B
http://biz.yahoo.com/ap/080714/anheuser_busch_inbev.html
Our dollar is so low these foreign countries are having a hay day buying us up. I wonder what is next.
At least the futures are green for once. We may be heading up today and stay up. We may even have a short rally until some of the bigger banks start posting results on the 22nd.
I think I'll do some short term solar plays. They had the shit kicked out of them the most. SOLF, YGE, and SOL are all cheap quick money plays today. CSIQ should be the best bet today.
I may have to sell at the open, this market is making me nervous. I don't think the FED bailing out Fannie and Freddie is all that good of news....we'll see how things play out. It wouldn't surprise me if we went up or down 300 pts today.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Analysts say more U.S. banks will fail
| Quote From Source: | As home prices continue to decline and loan defaults mount, U.S. regulators are bracing for dozens of American banks to fail over the next year.
But after a large mortgage lender in California collapsed late Friday, Wall Street analysts began posing two crucial questions: Just how many banks might falter? And, more urgently, which one could be next?
The nation's banks are in far less danger than they were in the late 1980s and early 1990s, when more than 1,000 federally insured institutions went under during the savings-and-loan crisis. The debacle, the greatest collapse of American financial institutions since the Depression, prompted a government bailout that cost taxpayers about $125 billion.
| | Click source url to view entire story. |
Source IHT
Source URL:
http://www.iht.com/articles/2008/07/14/business/14bank.php
This is a pretty alarming article since it points out that Indy Mac was NOT on the feds troubled bank list this spring. I wonder how many more banks have slipped below the radar. People are guessing a minimum of 150 banks but many are saying far more than that. And these are not small banks either. We are in for some rough times ahead.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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^VIX has been rising all morning, this is not good.
http://stockcharts.com/h-sc/...p40574660801&a=126579748
The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".
There are three variations of volatility indexes: the VIX tracks the S&P 500, the VXN tracks the Nasdaq 100 and the VXD tracks the Dow Jones Industrial Average. The first VIX, introduced by the CBOE in 1993, was a weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. VIX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Fannie Plan a `Disaster' to Rogers; Goldman Says Sell
| Quote From Source: | July 14 (Bloomberg) -- The U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac is an ''unmitigated disaster'' and the largest U.S. mortgage lenders are ''basically insolvent,'' according to investor Jim Rogers.
Taxpayers will be saddled with debt if Congress approves U.S. Treasury Secretary Henry Paulson's request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac, Rogers said in a Bloomberg Television interview. Rogers is betting that Fannie Mae shares will keep tumbling.
Goldman Sachs Group Inc. analyst Daniel Zimmerman said the mortgage finance companies' shares may fall another 35 percent and lowered his share-price estimate for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17. Freddie Mac fell 18 cents, or 2.3 percent, to $7.57 at 11:16 a.m. in New York Stock Exchange trading, while Fannie Mae rose 13 cents, or 1.3 percent, to $10.38.
| | Click source url to view entire story. |
Source Bloomberg
Source URL:
http://www.bloomberg.com/app...=aSLF543SCO4A&refer=home
Well, DUH. I bet we get stuck with it anyhow. They are TOO BIG TO FAIL according to Paulson. Well, gee, its not our faults they made bad decisions.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Geez, I think the only safe place to put your money now is Gold and Cocaine.
They should take the warning labels off of everything and let stupidity sort itself out.
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DanG
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I'm thinkin of Gold n Silver coins... don't know a f*ckin thing about it tho...
but obviously, the economy is in the crapper and won't get better
anytime soon.
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FatalWishes
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| Quoting DanG - posted on 7/14/2008 at 13:26 |
I'm thinkin of Gold n Silver coins... don't know a f*ckin thing about it tho...
but obviously, the economy is in the crapper and won't get better
anytime soon.
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Just go to those links I posted or MM posted and buy some gold coins. They are like cash you can convert anywhere on the planet.
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Citigroup's $1.1 Trillion of Mysterious Assets Shadows Earnings
| Quote From Source: | July 14 (Bloomberg) -- At an investor presentation in May, Citigroup Inc. Chief Executive Officer Vikram Pandit said shrinking the bank's $2.2 trillion balance sheet, the biggest in the U.S., was a cornerstone of his turnaround plan.
Nowhere mentioned in the accompanying 66-page handout were the additional $1.1 trillion of assets that New York-based Citigroup keeps off its books: trusts to sell mortgage-backed securities, financing vehicles to issue short-term debt and collateralized debt obligations, or CDOs, to repackage bonds.
Now, as Citigroup prepares to announce second-quarter results July 18, those off-balance-sheet assets, used by U.S. banks to expand lending without tying up capital, are casting a shadow over earnings. Since last September, at least $100 billion of assets have flooded back onto Citigroup's balance sheet, accompanied by more than $7 billion of losses.
| | Click source url to view entire story. |
Source Bloomberg
Source URL:
http://www.bloomberg.com/app...=a1liVM3tG3aI&refer=home
Ok, this is the best one yet. 2/3 of all the worlds money flows through Citi. This is simply OMFG incredible.
I had no idea it was ok to have an off-balance sheet asset. And a trillion dollar one to boot. WTF is that all about??
They should take the warning labels off of everything and let stupidity sort itself out.
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FatalWishes
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Today is going to suck. We are heading into the 10's today and I can pretty much see that we are going to stay there for a while. At least until we hit the 9k's.  Always time for a reversal though. Bernanke is going to speak and what he has to say will either tank or raise this market. This sucks because nobody knows what to do. We may crawl back into the 11's for that matter.
I feel sorry for Lehman Bros share holders as well as Fannie Mae, and Freddy Mac shareholders. Those stocks are dive bombing. And that 1 trillion phantom thing from Citi shook a lot of people up. Merril Lynch is being dive bombed as well with a -14+ eps it is just looking bad.
We are at the point of no return. Rumors are the greatest and things look the worst. This may be the time to buy. Things could get worse yet though. Wells Fargo (WFC $20.90) and Bank of America are really cheap (BAC $19.33). I'm thinking Washington Mutual may survive all of this and at (WM $3.27) a share it would be a buy of a lifetime. Problem with WM is, they are buried neck deep in California and Florida home loans. Not the good kind either. And I do mean neck deep. Earnings are due next week, we will see then . Washington Mutual is just one huge monster to slay. If they drag that thing down "we're in some real pretty shit now". (Aliens)
"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful."
~Warren Buffet
They should take the warning labels off of everything and let stupidity sort itself out.
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posted on 7/10/2008 at 21:37
