Fannie, Freddie sink on government rescue fears
Thank you Doug E Kass for being dead on the money again!
Friday July 11, 6:55 am ET
By Alan Zibel, AP Business Writer
Fannie, Freddie shares drop as worries of government rescue build amid ongoing housing woes
WASHINGTON (AP) — Fears that the government will be forced to rescue Fannie Mae and Freddie Mac could well become a self-fulfilling prophecy.
Shares of the government-chartered mortgage finance giants plummeted Thursday and are trading at levels last seen in the early 1990s. If the prices don’t recover, it will be harder for the two companies to raise more money through stock sales to compensate for losses from the housing bust. Investors are afraid their stakes will vanish if the government is forced to rescue the companies.
Fannie & Freddie Nationalized?
It started late Sunday night when I was watching Bloomberg Europe around 3:30 am. They had an interview with a hedge fund manager from the United Kingdom and he was basically saying at the end of the day the US government will have no choice but to nationalize Fannie and Freddie. That got me thinking about the recent drum beat that is coming in unison from Hank Paulson and Ben Bernake. You know the statement they have both been screaming from the rooftop “the markets need to realize that no financial institution is to large or to connected for failure”. At first I was thinking wow who is it, Bank America, JP Morgan, Wachovia? Then the slide this week on Wallstreet with Fannie (FNM) and Freddie (FRE). Doug Kass last night on Kudlow and Company put it like this “I have been short Fannie and Freddie for over a year and half and I am not covering because I fully expect unless goverment policy affects the foreclosures Fannie (FNM) and Freddie (FRE) are heading to zero and will be nationalized”. All I can say is wow, I and a lot of other people always thought Fannie and Freddie were to large and connected to fail.
US foreclosure filings surge 53 percent in June
Thursday July 10, 5:00 am ET
By Alan Zibel, AP Business Writer
Foreclosure filings continue to rise as US housing crisis drags on
WASHINGTON (AP) — The number of homeowners stung by the rout in the U.S. housing market jumped last month as foreclosure filings grew by more than 50 percent compared with June a year ago, according to data released Thursday.
Florida Sues Countrywide over Mortgages
By Reuters | 01 Jul 2008 | 04:56 AM ET
Florida sued mortgage lender Countrywide Financial Monday for predatory lending practices, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them.
The Florida attorney general filed the lawsuit, which names Countrywide Chief Executive Angelo Mozilo as a defendant, in state court in Broward County, Florida.
Last Wednesday, officials in Illinois and the company’s home state of California also sued Countrywide. On the same day, shareholders approved the company’s takeover by Bank of America.
Wachovia quits offering risky mortgage loan
Monday June 30, 5:49 pm ET
By Ieva M. Augstums, AP Business Writer
Wachovia quits offering controversial mortgage payment plan cited in foreclosures
Lennar 2Q loss narrows; sees worsening conditions
A key home sales report is due out later this morning is Lennar an indicator of what is to expect. Interested in Foreclosure Opportunities – http://www.fastfloridaappraisals.com/foreclosure.html
Thursday June 26, 9:02 am ET
By Alex Veiga, AP Business Writer
Lennar posts narrower 2nd-quarter loss, but sees housing market deterioration ahead
Homebuilder Lennar Corp., said Thursday its fiscal second-quarter loss narrowed, but the company continued to struggle through the housing market doldrums, posting a 61 percent drop in revenue and taking hefty charges to write down land values and deposits.
Consumer confidence sinks to 16-year-plus low
Record fuel prices, declining home prices, declining equity prices and an unstable job market. Only Larry Kudlow can spin the news today and make us believe were not in a recession.
Tuesday June 24
By Ellen Simon, AP Business Writer
Consumer confidence takes unexpectedly sharp spill in June, home prices sag to 2004 levelsNEW YORK (AP) — U.S. consumers are the gloomiest they’ve been since the tail end of the last prolonged recession. Inflation, sinking home values and soaring gas prices have pushed confidence to the lowest level since 1992. Consumers’ view of the economic future has never been lower, raising worries that already weak consumer spending could deteriorate further.
US home prices tumble in April at record rate
Today I did an asset valuation appraisal for a major banking institution which was considering a short sale transaction. Through paired analysis I was forced to adjust closed March sales down 13%. The conclusion of value was 46% below the prior sales price in 2005. I think the Case Schiller figures are dead on and if anything behind the curve in a number of the South Florida markets. If you would like to take advantage of the current market conditions visit my page for my Foreclosure information. http://www.fastfloridaappraisals.com/fl-foreclosure/home.html
Tuesday June 24
By J.W. Elphinstone, AP Business Writer
Private, government indices say US home prices fell at steepest rate on record in April
NEW YORK (AP) — No matter who’s measuring, the results are the same: Housing prices are tumbling at the sharpest rates ever with a bottom still at least a year away, economists say.
Both the Standard & Poor’s/Case-Shiller home price indices and the Office of Federal Housing Enterprise Oversight index on Tuesday reported record year-over-year declines in April, a sobering signal that the housing slump not only is deepening, but also engulfing markets once above water.
Senate plans vote today on anti-foreclosure plan
The Florida Real Estate Market is going through a corrective stage and now is the time to take into consideration purchasing Foreclosed Properties. I have FREE Foreclosure Lists Available http://fastfloridaappraisals.com/fl-foreclosure/home.html
By JULIE HIRSCHFELD DAVIS, Associated Press Writer
WASHINGTON – A plan to help hundreds of thousands of homeowners avoid foreclosure is drawing bipartisan support in the Senate, setting the stage for high-stakes negotiations among congressional Democrats.
The far-reaching housing plan faces a Senate test-vote Tuesday, when it could also come to a final vote. The disputes among Democrats over key details, however, as well as a veto threat from the White House will almost certainly push any final agreement into July.
Conservative “Blue Dog” Democrats are concerned about how to pay for the measure, while members of the Congressional Black Caucus — most of them liberal — call it “unacceptable,” arguing it doesn’t do enough to address the needs of African Americans.
Oil Market Bubble?
You be the judge. After hearing for the past 6 months the weak dollar and strong demand have been the main driving forces in the price spikes, I find myself scratching my head today as I am filling up for $4.29 a gallon. Today we had the Saudi’s announce they will provide an additional 200,000 barrels per day and we had the dollar rally against all major currencies. But somehow oil rallied $1.89 a barrel on the day session. How is this? We have been told it’s a weak dollar and strong demand. You would think that with the dollar rally and the Saudi news on the wires, the oil market would of given some of the prior gains back. I mean if it were reversed and the Saudi’s came out today and said “we are taking 200,000 barrels off the market” and the dollar sank against all of the world’s major currencies, oil would of rallied $5.00 + dollars on the session. I guess if I want an answer to this question I will have to watch CNBC tomorrow as I am sure they will have a cheerleader in the oil pit. (more…)
