Fannie May go down da hole

[Dequeant]

http://www.forbes.com/markets/2008/...r-markets-equity-cx_md_lal_0506markets43.html

My favorite quote of just about any article i've ever read....

Fannie Mae has gone from bad to worse to below rock bottom, and the mortgage company expects losses to be in the depths of fiery hell by next year.

They lost over 2 billion dollars THIS QUARTER! Also, because all these Arms will be resetting to higher rates this month, you can bet your ass the foreclosure rates will increase substantially next quarter. Ouch.

 

[RSLudlum]

Aren't we suppose to be at the peak of the ARM resetting fiasco?? I think I remember seeing a graph in laste last year that showed a majority of the ARMs were set to be resetting right about now, and then start declining. I think it was in Schiff's book??? Have to go check it out...

 

[SeanEdwards]

No worries. They can always tap the taxpayers to bail them out.

 

[AceNZ]

But, but, I thought the crisis was over, that everything was going to be OK, that there isn't going to be a recession, that stocks go up forever. That's what they told me on TV! Dubya even told me!

 

[Cowlesy]

No worries. They can always tap the taxpayers to bail them out.

They'll be insolvent by year-end, so the government will just blast them with a capital infusion and all will be well again in candyland.

Oh --- and guess what! It's not quite a 0% downpayment, but Fannie Mae will now accept 3% downpayments.

Come on, take out a mortgage! Buy a home to speculate on! Borrow Borrow Borrow!!!

http://biz.yahoo.com/rb/080516/fanniemae_downpayments.html?.v=5

 

[knappz]

Aren't we suppose to be at the peak of the ARM resetting fiasco?? I think I remember seeing a graph in laste last year that showed a majority of the ARMs were set to be resetting right about now, and then start declining. I think it was in Schiff's book??? Have to go check it out...

Not even close, still a few more years yet to go:

Rest area in early to mid '09 then back with the alt-a and option arms aka lier loans / no doc loans. An estimated 60-80% of these loans people are only making the minimum payment on them.

Things are gonna get sloppy.

 

[buffalokid777]

They'll be insolvent by year-end, so the government will just blast them with a capital infusion and all will be well again in candyland.

Oh --- and guess what! It's not quite a 0% downpayment, but Fannie Mae will now accept 3% downpayments.

Come on, take out a mortgage! Buy a home to speculate on! Borrow Borrow Borrow!!!

http://biz.yahoo.com/rb/080516/fanniemae_downpayments.html?.v=5

It seems to be Basell II banking standards are causing the Bush Clinton crime family a whole lot of headaches to continue their SIV shell game They made all these off book profits, now they can't cash them out in the world community on books....serves them right