WASHINGTON (Reuters) - Freddie Mac's federal regulator slapped the No. 2 U.S. mortgage finance company with a 30 percent higher minimum capital requirement on Thursday until it sorts out its books after an accounting scandal.
It's not, in and of itself, but given the fact that Fannie May has a reserve of 1.5% and presently has 2.5% of its loans in default, it reflects a pattern of problems that quasi-government organizations are in trouble.
Don't overlook the fact that Martin Weiss has stated that 300+ of the Fortune 500 are bankrupt on the basis of pension underfunding alone. OMB itself often seeks Weiss's advice as his numbers are considered to be highly accurate.
Consider also that the Federal Pension Guarantee Fund is technically bankrupt, and members of their upper management resigned recently.
The news coming out is a red flag that our economy is in dire trouble though you may not hear about it on CNBS. If your interest is piqued, hang out here at the DROOY forum for awhile as there are many credible and astute folks here that share their insights with the board.
You could do worse than insuring yourself and your family with a few dollars in PM's or PM equities.
The battles in the markets will get very bloody indeed, DROOY will be a good post from which to observe the ensuing chaos.