"The" Big bale out (Fanny & Freddie) Is weekend?

[Honzajs119]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

It is earth-shattering news, it should alarm public. The reason is to save entire banking system. Can you imagine what could happen in case of bankruptcy of FNM or FRE?

They afraid, that people will read as "NO BANK IS SAFE". If people will massively withdraw deposits, it will be end of current global banking.

It could even lead back to Gold standard... How will they print money under Gold standard?

BUY GOLD + take delivery

[Supercilious]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

BUY GOLD + take delivery

Buy gold + take delivery ... in six months ?

Anyway going back to the subject. It seems that the conservatorship will also conserve the tradition at Frauddie:

http://www.iht.com/articles/2008/09/...s/treasury.php

At Freddie Mac, David Moffett, currently a senior adviser at the Carlyle Group private equity firm, succeeds Richard Syron.

Hmmm ... Morgan Stanley advises the Fed on the value of the F&F assets, a guy from Carlyle is put in charge of Freddie ...

It's good to be a fox. You get to take care of the chickens ...

What's next? Brian Hunter the next head of CFTC ?

[GRG55]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Hmmm ... Morgan Stanley advises the Fed on the value of the F&F assets, a guy from Carlyle is put in charge of Freddie ...

It's good to be a fox. You get to take care of the chickens ...

What's next? Brian Hunter the next head of CFTC ?

Well within the realm of the conceivable given present behaviours. And if it happens I too will join your oil bubble cohort...;)

[Laura]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Good article on why the bail out won't work

http://theseuncertaintimes.blogspot.com/

Laura

[Supercilious]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Till that happens read this please:
http://www.bloomberg.com/apps/news?p...6fc&refer=home

Sept. 8 (Bloomberg) -- Investors may be forced to settle contracts protecting more than $1.4 trillion of Fannie Mae and Freddie Mac bonds against default after the U.S. seized control of the companies in a bid to bolster the housing market.
Thirteen ``major'' dealers of credit-default swaps agreed ``unanimously'' that the rescue constitutes a credit event triggering payment or delivery of the companies' bonds, the International Swaps and Derivatives Association said in a memo obtained by Bloomberg News today. Market makers for the privately traded contracts will discuss how to settle them in a conference call at 11 a.m. in New York, the document said.
``This is a big deal,'' said Sarah Percy-Dove, head of credit research at Colonial First State Global Asset Management in Sydney. ``The market is not experienced at settling a credit event for a name of this size, so it is a bit of an unknown.''

$1.4 trillion CDS paper ... that will be funny to watch. I feel like a poor ancient aventine who got a free ticket to a big Colloseum event

[Supercilious]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Not this is truly interesting.... El-Erian in an interview gives a very strange answer when asked about Credit Default Swaps. Here is the clip:

http://link.brightcove.com/services/...ctid1777139496

Rep: How dangerous is the growing Credit Default Swaps Market [...]? Should that be keeping Ben Bernanke up at night?

El-Erian: The whole proliferation of structured finance should be keeping Ben Bernanke up at night. The CDS market is in fact less problematic than other than other elements we can't even model today, but that shows you what typically happens in human nature, which is, you get an innovation everybody falls in love with it, we over produce it, we over consume it and then we worry about the infrastructure later on.

Does anybody here has th faintest idea what exactly is he referring to?

What are those structured finance "elements", more problematic than CDS that "we can't even model today"?

[GRG55]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Let's start a pool on how many $millions the severance packages will be for the boyz...:rolleyes:

Here it is...and man is Congress pissed :eek:

Ex-Fannie, Freddie CEOs may collect millions

Mon Sep 8, 2008 4:16pm EDT
NEW YORK (Reuters) - The top executives at Fannie Mae and Freddie Mac, both losing their jobs as part of a government bailout, may get multimillion-dollar payments from the mortgage finance companies upon their exits...

...Freddie Mac's Syron is entitled to about $14.1 million in severance and other payments as long as his employment is ended "without cause," according to an analysis by executive compensation consulting firm James F. Reda & Associates LLC.

That payout includes an $8.8 million payment for the forfeiture of stock holdings -- a benefit he could receive even as the company's shares now have little value, said David Schmidt, a senior consultant at the compensation consulting firm...

...Fannie Mae's Mudd stands to get a payout of nearly $9.3 million, including severance, pension benefits and deferred compensation, according to the calculations...

[metalman]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Here it is...and man is Congress pissed :eek:

Ex-Fannie, Freddie CEOs may collect millions

Mon Sep 8, 2008 4:16pm EDT
NEW YORK (Reuters) - The top executives at Fannie Mae and Freddie Mac, both losing their jobs as part of a government bailout, may get multimillion-dollar payments from the mortgage finance companies upon their exits...

...Freddie Mac's Syron is entitled to about $14.1 million in severance and other payments as long as his employment is ended "without cause," according to an analysis by executive compensation consulting firm James F. Reda & Associates LLC.

That payout includes an $8.8 million payment for the forfeiture of stock holdings -- a benefit he could receive even as the company's shares now have little value, said David Schmidt, a senior consultant at the compensation consulting firm...

...Fannie Mae's Mudd stands to get a payout of nearly $9.3 million, including severance, pension benefits and deferred compensation, according to the calculations...

running a company into the ground so it has to be taken over by the gov't isn't 'cause' just a big steaming bucket of 'shut up and don't try to fix anything' corruption. didn't do anything illegal.

getting one of these insider jobs... it's all in the connections and employment agreement :mad:

meanwhile...

[GRG55]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Not this is truly interesting.... El-Erian in an interview gives a very strange answer when asked about Credit Default Swaps. Here is the clip:

http://link.brightcove.com/services/...ctid1777139496

Does anybody here has th faintest idea what exactly is he referring to?

What are those structured finance "elements", more problematic than CDS that "we can't even model today"?

Just a wild guess, but maybe it has something to do with this...;)

"...Such particles could explain the unsettling discovery of recent years that visible matter only accounts for some four percent of the Universe. Enigmatic phenomena called dark matter and dark energy account for the rest..."

[GRG55]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

...Bill Gross must be having a wonderful weekend knowing J6P just made him wealthier...

From the FT:

Bail-out hands Pimco $1.7bn payday

By Deborah Brewster in New York
Published: September 9 2008 19:49 | Last updated: September 9 2008 19:49


The Bill Gross-managed Pimco Total Return fund reaped a $1.7bn payday following the US government takeover of home loan giants Fannie Mae and Freddie Mac...

...Mr Gross, who co-founded Pimco and has managed the Total Return fund since 1987, was one of the first to call for a bail-out of Fannie and Freddie.

In his latest monthly commentary, he also said that the government needed to use more of its own money to support financial markets, or risk a “financial tsunami”...

[The Outback Oracle]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

Gross was one of the people Paulson consulted with on the bail-out proposal as I recall!!!!!

[Pascal]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

This is an interesting comment by El Erian. My guess would be that he is referring to synthetic CDOs and CDO squared securities, but it's only a guess. Does anyone else know the answer?

Thanks for posting $#*.

[photoncounter]

Re: "The" Big bale out (Fanny & Freddie) Is weekend?

WoW..!!!

http://www.youtube.com/watch?v=yrfPM...end-humor.html