Freddie Mac Didn't Get the 'It's a Bottom!' Memo

Wrong headed CEO's. Now the fed has to bail will need to bail out yet another greedy bunch; it is just a matter of time. So our money will keep decreasing in value. The fed becomes a quiet thief to save and support such behavior. When home prices started up so quickly I and I bet a lot of us low middle incomers knew it couldn't sustain such price increases. When people who wanted homes were tapped out it was the beginning of the end. If the fed would raise rates and save the dollar a lot of wealth could be saved.

It's time that the taxpayers that are bailing out Freddie Mac become the owners of their purchased properties. The private interests don't or won't come up with the cash to keep them private so the taxpayers should realize the benefits of their investment. We should get something for the money spent in our names.

Homes are valueless if you can not get a loan to buy one. The banks are holding both the MONEY and now the stock of "HOMES". The inventory of homes is growing, people are losing their jobs, something has to give. Our leaders call this a MORAL issue of who pays for it. MORAL leaders we do not have or they would have removed Fannie Mae and Freddie Macs ability to contribute to their election campaigns. In theory the Banks Belong to the people and run by the Gov. so why are they not making loans. In So. Ca. the Big Home lenders Wamu and Wachovia even Bank of America have very few loan officers. WHERE ARE OUR LEADERS... Vacation...??? 15 days of in session time before the election and 7000 homes a day are lost to the bank. WE NEED HELP NOW... not after another 210,000 homes are lost.

in addition to horrendous losses by the financials due to Real Estate... I think there will be a "2nd wave" of losses due to Hedge Fund Long related activity by many investment banks...either owning the positions or financing them... current evaluations of banks and current estimates don't take into consideration the negative impact of the "rapid decline in oil/commodities (that I believe most financial entities were probably LONG in) and won't show up in financial's earnings 'til 3rd/4th qtrs... I think you might want to cover this issue which could add further insight into the "true state of financials!" bob g. (flashrob@dimestop.com)

HAHAHAHAHAHA!!! They have absolutely NO CLUE as to how bad this is going to get. Option ARMs the next debacle? WHAT CAVE ARE THEY LIVING IN??? The company I work for STOPPED doing business with companies well over a YEAR AGO that were too exposed to these types of loans. IDIOTS!!!

It's clear that the US is in a hell of an economic mess and all the foofaw and rhetoric will not make it right. Housing is in free fall. Why? People overbought. It is not rocket science, as non-rocket scientists like to say. Our trade deficits worsen every month. Why? Everything we buy is made in China or Japan. Why? Because we moved all our jobs to nations that pay less and have no EPA standards. Our currency is worthless. Why? Because the Fed has no policy except inflation to deal with every economic crisis. Why? Because that's the only approach tha US knows.

It's clear that the US is in a hell of an economic mess and all the foofaw and rhetoric will not make it right. Housing is in free fall. Why? People overbought. It is not rocket science, as non-rocket scientists like to say. Our trade deficits worsen every month. Why? Everything we buy is made in China or Japan. Why? Because we moved all our jobs to nations that pay less and have no EPA standards. Our currency is worthless. Why? Because the Fed has no policy except inflation to deal with every economic crisis. Why? Because that's the only approach tha US knows.

It's clear that the US is in a hell of an economic mess and all the foofaw and rhetoric will not make it right. Housing is in free fall. Why? People overbought. It is not rocket science, as non-rocket scientists like to say. Our trade deficits worsen every month. Why? Everything we buy is made in China or Japan. Why? Because we moved all our jobs to nations that pay less and have no EPA standards. Our currency is worthless. Why? Because the Fed has no policy except inflation to deal with every economic crisis. Why? Because that's the only approach tha US knows.

It's clear that the US is in a hell of an economic mess and all the foofaw and rhetoric will not make it right. Housing is in free fall. Why? People overbought. It is not rocket science, as non-rocket scientists like to say. Our trade deficits worsen every month. Why? Everything we buy is made in China or Japan. Why? Because we moved all our jobs to nations that pay less and have no EPA standards. Our currency is worthless. Why? Because the Fed has no policy except inflation to deal with every economic crisis. Why? Because that's the only approach tha US knows.

It's clear that the US is in a hell of an economic mess and all the foofaw and rhetoric will not make it right. Housing is in free fall. Why? People overbought. It is not rocket science, as non-rocket scientists like to say. Our trade deficits worsen every month. Why? Everything we buy is made in China or Japan. Why? Because we moved all our jobs to nations that pay less and have no EPA standards. Our currency is worthless. Why? Because the Fed has no policy except inflation to deal with every economic crisis. Why? Because that's the only approach tha US knows.

It's clear that the US is in a hell of an economic mess and all the foofaw and rhetoric will not make it right. Housing is in free fall. Why? People overbought. It is not rocket science, as non-rocket scientists like to say. Our trade deficits worsen every month. Why? Everything we buy is made in China or Japan. Why? Because we moved all our jobs to nations that pay less and have no EPA standards. Our currency is worthless. Why? Because the Fed has no policy except inflation to deal with every economic crisis. Why? Because that's the only approach tha US knows.

Chen G you posted the same comment over and over often a post does not appear right away. Good post, many good points but in the future try to post only once please. Over consumption and loose credit has created our problems, now how do we fix it, hopefully without wiping out fixed incomers.

Yep, fundamentals still declining.

FreddieMac today reports that .82%, (that's 1 out of every 118 mortgages) is now 3 months or more past due. They also report that have of their revenue retraction is from their altA portfolio. Those with the escalating payments. But what that really means is that the other half is from non AltA. This indicates that even conventional loans are now going down the tubes. The government is saying they will buy up shares of Freddie and Fannie to keep them solvent. In other words the government is now using taxpayer dollars to buy up the houses being defaulted upon. Now since the government will become the owner of millions of homes, and it's not really in the landlord business, either it will have renegotiate your loan with you, or rent your house back to you at a reasonable rate. So conserve your cash. .

I have been around along time . I have seen a lot of things come down the pike both good and bad. It seems to me that the genuis's in Washington may have just over legislated our country into a very serious postion. Most people today know in their gut that something is very wrong. What to do? I grew up hearing stories about the "GREAT DEPRESSION". To think that it cannot happen again or perhaps even worse is utterly false. Everyone must gather family members and close friends together and prepare (plan) for the very worst. (Hopefully, the very worst will not occurr) This was the main message I took from my parent and grand parents. Together as a family unit they manage to survive the Geat Depression. What will you do? What will you do?

I have been around along time . I have seen a lot of things come down the pike both good and bad. It seems to me that the genuis's in Washington may have just over legislated our country into a very serious postion. Most people today know in their gut that something is very wrong. What to do? I grew up hearing stories about the "GREAT DEPRESSION". To think that it cannot happen again or perhaps even worse is utterly false. Everyone must gather family members and close friends together and prepare (plan) for the very worst. (Hopefully, the very worst will not occurr) This was the main message I took from my parent and grand parents. Together as a family unit they manage to survive the Geat Depression. What will you do? What will you do?

It will go until it doesn't. We are on the edge of that transformation as you read these comments. Seems to me that the rest of the world is so deep in our worthless debt that the game will keep rolling along. Dollars are rising some now and the currency traders will go with that a while until they don't. At that point in time food and gasoline will soar well past their previous highs. It is really too bad that oil slipped down a notch because we'll all keep driving those behemoths speeding up to every signal. America has obscured a glaring warning light and has no plan to slow down

I don't get it. All this hand wringing about Freddie Mack losing 4 billion in a quarter - and that threatens to backrupt our economy! We are and have been for too many years losing a billion dollars EVERY THREE DAYS - in George's misadventure in IRAQ. And we are losing it in a much more real way. Not some bookkeeping "write down" of a potentially defaulting home mortgages to 5% of the homes underlying value so that the actual recaptured value of the forclosed properties - who knows maybe 50% maybe 90% of the defaulted loans can show up on the companies books in a year or two .......as capital gains! with the resulting favorable tax consquences. No..... the war money is really lost ... spent expended blown to smitherines or just scattered to the winds --- Isn't this the root cause of the decline of the dollar internationally? and the subsiquent domestic inflation?

FRE IS STILL GOOD

Oh, something is wrong all right! 401Ks are taking a hit because the fund managers do not know how to operate in a bear market; the big bankers are crooks, or at minimum, inept; and a wholesale transfer of wealth is occuring from the U.S. to China, Europe, to "and on and on". The cost of living is skyrocketing, and for those folks on a fixed income, I honestly feel for you.