if you review the 'total' picture (which is the best way to understand business 101) - on the low end (FRE) has over 1-trillion in assets IF you take the HIGH end of bad/default loans (5%) - that equals to 50-billion NOW look at the 'real' money govt gave to both F & F (approx 50-billion each) - that's the REAL math - AND that's ONLY if you 'lost' the holding/RE (house) which you don't you just repo it - So...if anyone is interested in REAL MATH and the REAL story - this is what I've been reviewing/studing/investing in now for close to two years - (sorry I simply do NOT believe that there are too many real estate foreclosures (I was attending auctions every two weeks on 'sales' - now I barely can find one every 2-3 months that turn into 'real deals') -
CNBC - give whatever info they are instructued to but in reality RE sales ALWAYS go down this time of the year -
Sales slumped slightly the NOV/DEC sales due to the fact that everyone thought the tax credit was done (I called for an extension over 10 weeks before it had expired) -
Do we see the 3-4 dollar range THIS week (no way) ((with one exception gov't removed FRE from C-ship - only way) -
My number is we won't see above 1.65 (at best) - I still call the end of the year at 1.40-1.50 range - -
((HOPE I'm wrong - I'm long since before .78 pps and if we ever did hit the 5-10 range -- I simply retire!!)) -
Realestate isn't a gamble when you do your MATH - (I've been calling for people to DO THE MATH since early 2009)
GLAD someone actually sees the real numbers -
Tomorrow (we won't do over 60 million in volume) - at best (unless it's all over the news) -
Crammer did make ONE statement (although he hates F and F) - he did state 'if you ever want to make money invest in what the gov't invests in!' --- hello Crammer....that F and F!!
Dec 21: "Some 92 percent of loans owned or insured by Fannie Mae or Freddie Mac (with implicit government backing) are performing, down from 93 percent in the second quarter. For comparison, the report classified 87 percent of all US home loans as performing."