No bailout for Fannie and Freddie!

Discussion in 'Stocks' started by crgarcia, Jul 11, 2008.

  1. Paulson said it clearly.

    Of course, the gov't backs the mortgage debt.
  2. You need a class in reading comprehension.
    No where in Paulson's statement does he use the word "bail-out".

    Read it again, my friend.
  3. Mup


    They'll proabaly change their tune on Monday....
  4. Daal


    how can you check agency debt yields in real-time
  5. Yep.
    And according to banking analysts at Fox-Pitt Kelton ( Howard Shapiro ) Fannie and Freddie would have to post pre-tax losses and writedowns of about $77 BILLION before the U.S. would be compelled to start a rescue.

    Fannie Mae would need to lose $40 billion ``immediately'' and Freddie Mac $37 billion to be considered insolvent, New York- based Fox-Pitt analyst Howard Shapiro said in a report this week. For Fannie Mae, house prices would need to decline 40 percent nationally and delinquency rates would need to rise as much as 10-fold to 12 percent on loans from 2006 and 2007 to reach critical capital levels, Shapiro said.

    ``We believe this is very unlikely,'' Shapiro said.

    NOTE: Current losses on the books = $11 BILLION.