[Skip to the end] Giving them a quantity target rather than a price target can mean overpaying to meet their mandated buying requirements. This is a direct fiscal transfer to the sellers of the ‘overpriced’ securities without the compensation or equity costs associated with the TARP. Fannie, Freddie to Buy $40 Billion a Month of […]
Tag Archives: Freddie
NYT: Too big to fail?
[Skip to the end] Too Big to Fail? by Peter S Goodman Using public money to spare Fannie and Freddie would increase the public debt, which now exceeds $9.4 trillion. The United States has been financing itself by leaning heavily on foreigners, particularly China, Japan and the oil-rich nations of the Persian Gulf. This is […]
FT: Time for comrade Paulson to pull the plug on the Fannie and Freddie charade
[Skip to the end] Totally misguided regarding public purpose. For one thing, the shareholders of the agencies are still there for ‘market discipline’ – all that’s been done for them is eliminated liquidity issues, not solvency issues. At the end of the day a lot of houses were built for a lot of people who […]
Re: Fannie & Freddie
(an email exchange) > >  On Mon, Apr 21, 2008 at 9:55 AM, Russell wrote: > >  Fannie and Freddie now back 82% of all mortgages in the U.S., >  up from only 46% in the second quarter of 2007. If they need >  a bailout – could be a trillion dollars – Funds are […]