Redstate
A good description of what just happened to Fannie Mae and Freddie Mac and some reasons why. This made me laugh. “If we were in China, they’d probably have “committed suicide” with bullets inexplicably entering the backs of their heads. I’d certainly want to shoot them if I were a shareholder of either GSE. There are some things the Chinese do better than we do.”
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Meta
I agree with you totally on this Mike, but isn’t it all too little too late. With all the financial Geniuses who can predict so accurately how markets and trends will ebb and flow, how did we not see this coming?
Ahem.
Some of us did. Poke around while you are there and I have plenty of coverage on what is going on. I have a lot here at ASHC as well. Not that I think it took a genius to figure it out, but I appreciate the compliment.
I would expect the taxpayer will eventually have to cover 250 billion, not 25 billion as the press has been claiming. That will pretty much wipe out the shareholders. I think they should make the senior debtholders take a haircut as well, but I am such a meanie.
9.16% of US mortgages are delinquent or on foreclosure with more to come. They have a 5.2 trillion book. Assume a 50% recovery rate (about what foreclosures are getting now) resulting in total losses of about 4% you get @200 billion, 5% @250 billion ….
This will not be pretty.