Tag Archives: Freddie Mac

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    The Unsafe Foundation of Our Housing ‘Recovery’

    Overdependence on subsidies, debt, and unfounded optimism
    by charleshughsmith

    Monday, February 25, 2013, 9:55 PM

    6

    What could go wrong with the housing 'recovery' in 2013?

    To answer this question, we need to understand that housing is the key component in household wealth. And, that Central Planning policies are aimed at creating a resurgent “wealth effect,” as follows: When people perceive their wealth as rising, they tend to borrow and spend more freely. This is a major goal of U.S. Central Planning.

    Another key goal of Central Planning is to strengthen the balance sheets of banks and households. And the broadest way to accomplish this is to boost the value of housing. This then adds collateral to banks holding mortgages and increases the equity of homeowners.

    Some analysts have noted that housing construction and renovation has declined to a modest percentage of the gross domestic product (GDP). This perspective understates the importance of the family house as the largest asset for most households and housing’s critical role as collateral in the banking system.

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    Daily Digest 1/15 – Unprecedented Buying of Silver, Banks Loosen Purse Strings, Yuan Won’t Ease Inflation

    by DailyDigest

    Saturday, January 15, 2011, 4:00 PM

    0
    • How to Fix Mortgage Mess in Three Steps: Laurence Kotlikoff
    • US Mint Reports Unprecedented Buying Spree Of Physical Silver
    • Copper Deficit May be 600,000 Tons, JPMorgan Says
    • Banks Loosen Purse Strings
    • China Lawmaker Says Yuan Appreciation Won’t Help Ease Inflation
    • Progress on Overhaul of Corporate-Tax Rules
    • Norway’s $186 Billion Gas Loss to Cement Russian Grip on Supply

    Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

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  • Blog

    Guest Post: U.S. Dollar Threatened by Fannie & Freddie

    by axelmerk

    Tuesday, September 7, 2010, 3:58 AM

    0
    by Axel Merk


    This article ran for our enrolled users last week as one in a series from respected guest commentators while Chris was vacationing with his family and working on his new book. Enjoy the fresh perspective.

     Will U.S. policymakers cause another financial catastrophe and destroy the U.S. dollar by focusing on their own short-sighted political interests?  Or will economic reason prevail?  While we wish for the latter, we fear the former is much more likely.  Unless real reform of Fannie Mae and its smaller cousin Freddie Mac (together the Government Sponsored Entities, or GSEs) is implemented, the consequences for all of us may be dire.  Investors may want to take this into consideration when making investment decisions.  Future implications may put downward pressure on the U.S. dollar; investments into more fiscally-stable and prudent countries displaying sound monetary policy may become ever more attractive.

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  • Blog

    Guest Post: Fannie and Freddie – The Exit Doors are Shut

    by Ilargi

    Friday, August 20, 2010, 6:09 PM

    0
    by Ilargi of The Automatic Earth

    This article ran for our enrolled users earlier this week and is one in a series from respected guest commentators while Chris is at work on his new book. Please welcome them to the ChrisMartenson.com community and enjoy the fresh perspective.

    From a purely political point of view, it’s a simple story.  Existing homeowners are a far more powerful force at the voting booth than potential owners, homebuyers, are.  It’s therefore very much in the interest of the incumbent government to keep home prices as high as it can.  Let them slide too much and you will pay for that at the next election.  For potential buyers, you can devise plans that lower interest rates and down payments, but that’s all.  More affordability simply through lower prices is not on the political table.

    Still, in the “listening conference” on US housing policies – Fannie Mae and Freddie Mac in particular – that started this week, it’s not voters who have the biggest say.  That is reserved for the financial industry, and how could it not be?  Not that the Obama administration has to hear the truth from the bankers anymore:  Washington has long since realized that truth.  Which is that without Fannie and Freddie and the 80% stake the US took in them in 2008, as well as the unlimited financial guarantee issued by Tim Geithner at the end of 2009, it’s not just the housing industry that would instantly collapse.  The banking industry would, like a shadow, rapidly follow in its footsteps.

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    Daily Digest – August 11

    by Davos

    Tuesday, August 11, 2009, 2:45 PM

    0
    • America’s NOD
    • Consumer, Celebrity Bankruptcies May Hit 1.4 Million
    • Deficit grew by $181 billion in July
    • Businesses shuttered for nonpayment of taxes
    • Monopoly Money
    • California Budget Miscalculation
    • Consumer Credit (Chart)
    • California and New York debt riskier than Russia and Turkey
    • Freddie Mac
    • Banks – Crack Dealers with Government Backing
    • Romer Video, Small Businesses and Health Care

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    Daily Digest – June 28

    by Davos

    Sunday, June 28, 2009, 2:26 PM

    0
    • Fungus threat hangs over world wheat production (Repost)
    • Appraise Local? (Video)
    • Commodity Snapshot (Charts)
    • Another Hotel Defaults on Mortgage Debt (Repost)
    • Mass. is housing homeless in motels
    • Fannie, Freddie asked to relax condo loan rules: report
    • LEI, Leading Edge Indicators
    • Buffett Opines on Green Shoots, Inflation, Apple Disclosure, and Bernanke
    • Cap-and-Tax or Cap-and Create Another Bubble?
    • The End of the Recession?
    • The impending end of the bear market rally (Video on page)
    • FSN New Hour, 3rd Hour with Jim and John Part 3A and 3B

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  • Blog

    Daily Digest – Apr 24

    by Davos

    Friday, April 24, 2009, 2:19 PM

    0
    • Economics Is Interesting if You Understand it, Otherwise It Is a Snore! (Photo)
    • DON CORLEONE He will get in touch with you through someone you absolutely trust. That person will arrange a meeting, guarantee your safety…and at that meeting you will be assassinated.
    • Sources: GM to shut most US plants up to 9 weeks
    • Fewer in U.S. Move as Economy Falters (Mainstream article)
    • Housing Bust and Geographical Mobility (Blog article with chart on page)
    • Financial Pugilism and Offbeat Analysis
    • New York Times: Total Revenue Down 18.6 Percent; Debt at $1.3 Billion
    • GE exec says economic crisis resetting capitalism
    • Carbon Derivatives to Become World’s Largest Derivatives Market? (Video)
    • Max Keiser on Corruption, Derivatives, and Copyright Laws…(Video)
    • More on seeds that Max Keiser talks about (Video Scroll to 2hr&46 min point )
    • HR875 Ag. control for small farmers (Video, H/T RowMat)
    • Portfolio Cover Story on Timothy Geithner
    • Delinquencies Rising at Fannie & Freddie (Good Chart on Page)
    • Wells Fargo Made Billions On Mark-To-Market Change
    • Lewis Testified Treasury and Fed Pressed for Silence on Merrill Woes 

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  • Blog

    Daily Digest – Apr 23

    by Davos

    Thursday, April 23, 2009, 2:53 PM

    0
    • Jon Stewart Takes Over for CNBC and Cramer Becomes the Joke ( Video, H/T SteveS)
    • Jon Stewart Takes Over for CNBC and Cramer Becomes the Joke (Part II Video, H/T SteveS)
    • WH communications director leaving
    • Budget Deficits Don’t Matter – Until they Do…
    • KC Fed Pres Hoenig on “Negotiated Conservatorship”
    • Capital One: Expect Charge-Off Rates Greater than 10%
    • Fannie, Freddie Report Surge in Prime Delinquencies

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  • Blog

    Daily Digest – March 12

    by Davos

    Thursday, March 12, 2009, 4:25 PM

    0
    • U.S. Weighs Further Steps for Citi
    • Freddie Mac: $23.9 Billion Loss, Asks for $30.8 billion in funding
    • A conversation with Timothy Geithner, U.S. Treasury Secretary
    • Geithner flying solo
    • Obama, Geithner Get Low Grades From Economists
    • Global Credit Ranking
    • ‘Difficult’ Americans hamper G20 efforts to secure a global deal
    • China February Auto Sales Rise 25% After Tax Cuts
    • Marc Faber (Massive Deficits)
    • 50%? (repost)
    • Obermann (Phil Gramm)
    • South Carolina’s Sanford to become first governor to reject funds
    • U.S. banks may pay dearly for government aid
    • Get Long Torches & Pitchforks: A Growth Industry once the taxpayers wake-up Ritholtz Says

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  • Blog

    Daily Digest – Jan 25

    by Davos

    Sunday, January 25, 2009, 12:35 AM

    0
    • Icelandic government becomes first to be brought down by the credit crunch
    • Prescient Young Blogger Did What S. Korea Couldn’t — Foresee Global Financial Crisis
    • As Freddie Mac (FRE) Requests More Cash, The Scope Of The Bailout Gets Much Bigger
    • First Bailout Formula Had It Right
    • John Thain Called Out by the President
    • More layoffs expected at Starbucks
    • Bulls absolutely MUST break the VIX right here
    • The Aftermath of Financial Crisis (Draft/Harvard & NBER)
    • Financial Sense News Hour, January 24, 2009

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