Comments on: Bye Fannie, See Ya Freddie: Should the Rest of Us Get Ready to Kiss Our Butts Goodbye?

By: Darrell Prows

Darrell Prows — Mon, 08 Sep 2008 14:52:03 +0000

Stuart: The narrowing of the spread is important but, as of right now, the market for Treasuries is way off. This means that mortgage rates have gone up substantially, just not as much as would have been the case at the higher spread.But ask yourself this. If uncollateralized Treasury borrowings yield X, what is the proper yield for Treasury borrowings that have the added safety of mortgage collateral, and an independent repayment stream? Previously implicit guarantees have now been converted into full guarantees.

By: Stuart

Stuart — Mon, 08 Sep 2008 14:26:58 +0000

You can find this morning that the Global Markets boomed and interest rates dropped around the world, and they most likely will in the US today, after the government stepping in to support Fannie/Freddie.It is not a full takeover. They will remove much of upper management. At this point it is believed that all shareholders except preferred, will share equally in any stock market losses. The preferred is held by foreign interests, including China. The Fed will inject enough funds to keep Fannie/Freddie lending as they are the ultimate source of most of the loans in the US. A true failure of those giants wouldn’t be on Wall Street but on Main Street where home loans of every kind, including FHA, simply dried up.This is the best road that allows everyone to share the downside and keep the mortgage markets open. For every house going to foreclosure more are being sold. Having a working mortgage market is an absolute necessity.From Bloomberg this morning: Mortgage bonds guaranteed by Fannie Mae and Freddie Mac rallied the most since March, potentially reducing home-loan rates, after the U.S. government seized control of the companies and vowed to shore up demand.
The difference between yields on Fannie’s current-coupon 30- year fixed-rate securities and 10-year Treasuries narrowed 27 basis points to 165 basis points, the lowest since May, data compiled by Bloomberg show. The spread hit 216 basis points on Aug. 18, the widest since a 22-year high of 238 set in March============
Zak:Obama and McCain are worlds apart on everything. You can throw your vote away on Bob Barr, not because he doesn’t have a point of view, but because he has NO chance of impacting the outcome. Your vote for Obama has every chance of being a vote for a new way, which is actually a very old way, in Washington. Please consider the value of your vote.

By: Zak Carter

Zak Carter — Mon, 08 Sep 2008 12:46:12 +0000

The differences between McCain and Obama are minimal, when you consider that both believe big government can save you from yourself, and that we can save other nations from themselves as well. I will not play along with the game of lesser of two evils, as I believe that is part of what has plunged this nation into the mess we find ourselves today.
Please visit bobbarr2008.com and give liberty a voice in the Presidential debates and beyond.

By: alrudder

alrudder — Mon, 08 Sep 2008 06:26:07 +0000

What I want to know is, what is Ronald Reagan thinking about Secretary Paulson?The Reagan ideology of constant deregulation is done