Tag Archive: Fannie Mae


$3.39T Quantitative Explosion: Fed Owns More Treasuries and MBSs Than Publicly Held Debt Amassed From Washington Through Clinton

 

 

” The same day that the Federal Reserve’s Federal Open Market Committee announced last week that the Fed would continue to buy $40 billion in mortgage-backed securities (MBSs) and $45 billion in U.S. Treasury securities per month, the Fed also released its latest weekly accounting sheet indicating that it had already accumulated more Treasuries and MBSs than the total value of the publicly held U.S. government debt amassed by all U.S. presidents from George Washington though Bill Clinton. 

Since the beginning of September 2008, in fact, the Fed’s ownership of Treasury securities and MBSs has increased seven fold.

As of the close of business Thursday, the Fed said, it owned approximately $2,052,055,000,000 in U.S. Treasury securities and approximately $1,339,771,000,000 in mortgage-backed securities—for a combined total of about $3,391,826,000,000 in Treasury securities and MBSs.

The U.S. Treasury divides the U.S. government debt into two parts: debt held by the public, which includes publicly traded Treasury securities such as Treasury bills, notes and bonds, and intra-governmental debt, which is money the Treasury has borrowed out of the Social Security trust fund and other government trust funds and then used to pay current expenses.

As of the opening of business back on Nov. 23, 2001, according to the Daily Treasury Statement, the federal government’s total debt held by the public was $3,383,605,000,000.”

 

 

 

 

 

 

 

 

 

 

Las Vegas Suburb Accused of Plotting to Seize 5,000 Homes with Eminent Domain to Flip Them for a Profit

 

 

 ” The City intends to target for seizure mortgages 1) that are performing, i.e. current in their mortgage debt obligation of the homeowner; and 2) where homeowners owe more on their mortgages than the current fair market value of their home, i.e. ‘underwater’ mortgages; and 3) that are owned by private securitization trusts in secondary mortgage market lending portfolios rather than backed by the federal government through Fannie Mae, Freddie Mac, or the Federal Housing Authority. 

     “An example of the functioning of the Plan is a home in North Las Vegas worth $200,000 in the real estate market today but with a $300,000 current mortgage balance. The City plans to condemn and seize privately owned residential mortgage loans and to pay the owner of that note what it believes is just compensation, say, $150,000 for purposes of the example, from money borrowed from private investors. The City would then purport to accept a short payoff of the mortgage loan originally seized, through a new loan for, say, $190,000, if such new financing could be found and the homeowner can qualify for same. The City then plans to extinguish the original $300,000 note it had seized for $150,000 and to pocket the $40,000 difference as revenue to the City. 

     “There are, by City estimates, approximately 5,000 mortgages in North Las Vegas that qualify and will be targeted for seizure by exercise of the power of eminent domain. “

 

 

 

HT/AgainstCronyCapitalism

 

 

 

 

 

 

 

 

Bouncing Ball Politics

 

 

 

 

 

” For years, home ownership was a big “good thing” among both liberal Democrats like Congressman Barney Frank and Senator Christopher Dodd, on the one hand, and moderate Republicans like President George W. Bush on the other hand.

Raising the rate of home ownership was the big red bouncing ball that they pursued out into the street, in utter disregard of the dangers.

A political myth has been created that no one warned of those dangers. But among the many who did warn were yours truly in 2005, Fortune and Barron’s magazines in 2004 and Britain’s The Economist magazine in 2003. Warnings specifically about the dangerous roles of Fannie Mae and Freddie Mac were made by Federal Reserve Chairman Alan Greenspan in 2005 and by Secretary of the Treasury John W. Snow in 2003.

In pursuit of those higher home ownership rates, especially among low-income people and minorities, the many vast powers of the federal government — from the Federal Reserve to bank regulatory agencies and even the Department of Justice, which issued threats of anti-discrimination lawsuits — were used to force banks and other lenders to lower their standards for making mortgage loans.

What makes all this painfully ironic is that the latest data show that the rate of home ownership today is lower than it has been in 18 years. There was a rise of a few percentage points during the housing boom, but that was completely erased during the housing bust. Housing has been just one area where the bouncing ball approach to political decision-making has led the country into one disaster after another.”

 

 

 

 

 

 

 

 

 

Wait! Government Did Cause The Housing Bubble

 

 

 

 

” Regarding the latter example, however, there has been a persistent dispute among mainstream economists about the role of government housing policy, particularly the Community Reinvestment Act which was used, in the 1990s, to make banks increase their lending to particular low-income neighborhoods. Paul Krugman asserts, for example, that the “Community Reinvestment Act of 1977 was irrelevant to the subprime boom.” Actually, no. A new NBER paper (gated) on the CRA is causing quite a stir. Authored by four economists from NYUMIT, Northwestern, and Chicago, the paper is the first to use instrumental-variables regression to distinguish changes in bank lending caused by the CRA from changes that would likely have happened anyway. (The authors use the timing of loan decisions relative to the dates of CRA audits to identify the effect of the CRA on lending.) The results suggest that CRA enforcement did, contra Krugman, lead banks to make substantially riskier loans than otherwise. Raghu Rajan puts it in a very Austrian-sounding way:

The key then to understanding the recent crisis is to see why markets offered inordinate rewards for poor and risky decisions. Irrational exuberance played a part, but perhaps more important were the political forces distorting the markets. The tsunami of money directed by a US Congress, worried about growing income inequality, towards expanding low income housing, joined with the flood of foreign capital inflows to remove any discipline on home loans. And the willingness of the Fed to stay on hold until jobs came back, and indeed to infuse plentiful liquidity if ever the system got into trouble, eliminated any perceived cost to having an illiquid balance sheet.

I’d reverse the order of emphasis — credit expansion first, housing policy second — but Rajan is right that government intervention gets the blame all around.”

 

 

 

 

 

 

 

 

 

HERE WE GO AGAIN: WHITE HOUSE ASKS BANKS TO MAKE LOANS TO BORROWERS WITH ‘WEAKER CREDIT’

 

 

 

” The Obama administration is pushing banks to extend home loans to people with weaker credit, an initiative that the White House says will help fuel the recovery but critics say will lead to the type of conditions that caused the financial crash of 2008.

“President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession,” Zachary A. Goldfarb writes in the Washington Post.

The Obama White House explains that by taking advantage of taxpayer-backed programs that insure home loans from default, banks should be able to provide loans to a greater number of borrowers.

Cautious of the White House’s initiative, banks have secured assurances from housing officials that they won’t be held responsible for government approved borrowers who default on their loans.”

Illustration by Yogi Love

 

 

 

WAL-MART VS. THE GOVERNMENT

” I know lots of folks don’t like Wal-Mart, but this is fascinating.

This is spot-on.

PLEASE, READ THIS TO THE END. IT IS VERY INTERESTING!!!

Wal-Mart vs. The Morons

1. Americans spend $36,000,000 at Wal-Mart Every hour of every day.

2. This works out to $20,928 profit every minute!

3. Wal-Mart will sell more from January 1 to St. Patrick’s Day (March
17th) than Target sells all year.

4. Wal-Mart is bigger than Home Depot + Kroger + Target +Sears + Costco

K-Mart combined.

5. Wal-Mart employs 1.6 million people, is the world’s largest private
employer, and most speak English.

6. Wal-Mart is the largest company in the history of the world.

7. Wal-Mart now sells more food than Kroger and Safeway combined, and
keep in mind they did this in only fifteen years.

8. During this same period, 31 big supermarket chains sought
bankruptcy.

9. Wal-Mart now sells more food than any other store in the world.

10. Wal-Mart has approx 3,900 stores in the USA of which 1,906 are
Super Centers; this is 1,000 more than it had five years ago.

11. This year 7.2 billion different purchasing experiences will occur
at Wal-Mart stores. (Earth’s population is approximately 6.5 Billion.)

12. 90% of all Americans live within fifteen miles of a Wal-Mart.
You may think that I am complaining, but I am really laying the ground
work for suggesting that MAYBE we should hire the guys who run Wal-Mart
to fix the economy.

This should be read and understood by all Americans… Democrats,
Republicans, EVERYONE!!

To President Obama and all 535 voting members of the Legislature,
it is now official that the majority of you are corrupt morons:

a. The U.S. Postal Service was established in 1775. You have had 234
years to get it right and it is broke.

b. Social Security was established in 1935. You have had 74 years to
get it right and it is broke.

c. Fannie Mae was established in 1938. You have had 71 years to get
it right and it is broke.

d. War on Poverty started in 1964. You have had 45 years to get it
right; $1 trillion of our money is confiscated each year and transferred to
“the poor” and they only want more.

e. Medicare and Medicaid were established in 1965. You have had 44
years to get it right and they are broke.

f. Freddie Mac was established in 1970. You have had 39 years to get
it right and it is broke.

g. The Department of Energy was created in 1977 to lessen our
dependence on foreign oil. It has ballooned to 16,000 employees with a budget of
$24 billion a year and we import more oil than ever before. You had 32 years to get
it right and it is an abysmal failure.

You have FAILED in every “government service” you have shoved down our
throats while overspending our tax dollars.

AND YOU WANT AMERICANS TO BELIEVE YOU CAN BE TRUSTED
WITH A GOVERNMENT-RUN HEALTH CARE SYSTEM??

Folks, keep this circulating. It is very well stated. Maybe it will end
up in the e-mails of some of our “duly elected’ (they never read anything)
and their staff will clue them in on how Americans feel.

AND

I know what’s wrong. We have lost our minds to “Political Correctness”
!!!!!!!!!!!!!!!!!!

Someone please tell me what is wrong with all the people that
run this country!!!!!!

We’re “broke” and can’t help our own Seniors, Veterans, Orphans, Homeless
etc. and the last months we have provided aid to Haiti, Chile, and Turkey and now
Pakistan ( the previous home of bin Laden). literally, BILLIONS of DOLLARS!!!

Our retired seniors living on a ‘fixed income’ receive no aid nor do
they get any breaks.

AMERICA: a country where we have homeless without shelter, children
going to bed hungry, elderly going without needed medicines, and mentally ill
without treatment, etc.

Imagine if the GOVERNMENT gave U. S. the same support they give to
other countries. Sad isn’t it?

*99% of the people receiving this message won’t have the guts to forward this.

*I’m one of the 1% — I Just Did
BEING UNITED SAVES AMERICA!”

New Study Confirms Economy Was Destroyed By Democrat Policies

 

U.S. Rep. Barney Frank (D-MA), Sen. Charles Schumer (D-NY) and Sen. Christopher Dodd (D-CT) brief the media after a meeting on Capitol Hill

Alex Wong:Getty Images

 

 

” A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left’s race-baiting attacks on the housing market (the Community Reinvestment Act–enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

Again, let’s review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.”

 

  Not really news to us that pay attention , but still nice to see in print from a significant news source .

Despite Concerns By Fellow Democrats And Civil Libertarians, The Senator Says There’s Ample Oversight On Spying

Ample Oversight … Where have we heard that before ? Oh yeah . The Stimulus , Fannie Mae , Freddie Mac , Pigford , Gunwalker , Benghazi , Solyndra , need we go on ? Charlie Rangel , Maxine Waters , William Jefferson , Domestic Drones , TSA ?  Secret Service , GSA ?

” However, outgoing chair of the Senate Intelligence Committee Sen. Dianne Feinsten, D.-Calif., defended the surveillance practices permitted under FISA’s current provisions. “I don’t think there’s any program that has more vigorous oversight,” she said in response to Wyden Thursday. Feinstein said that in regards to stopping domestic terrorist attacks in recent years, the surveillance program “has worked,” noting that some of the 100 arrests made over the past four years to prevent attacks on U.S. soil have been made based on intelligence gleaned under FISA.

According to the Guardian, “National Security Agency whistleblower Bill Binney has estimated that the agency has ‘assembled’ 20 trillion transactions between U.S. citizens.”

As Wyden put it Thursday, I think, when you talk about oversight, and you can’t even get a rough estimate of how many law-abiding Americans had their communications swept up by this law … the idea of robust oversight, really ought to be called toothless oversight if you don’t have that kind of information.”

 

 

 

 

 

 

 

 

 

 

Outrageous…

 

 

Fannie Mae Largesse

 

 

HT/Glenn Reynolds

 

FHA Red Ink May Be $32.8 Bil, Double Official Audit

 

 

 ” The Federal Housing Administration is in the red, according to an official audit released Friday, making a taxpayer bailout “all but certain.” But the reality may be even worse.

The FHA’s capital reserve was -1.44% of loan guarantees, or -$16.3 billion, according to a new independent audit. Last year reserves were still positive at 0.24% and $2.6 billion.

By law, the FHA — which insurers mortgages, mostly for low-income borrowers — is supposed to have a capital reserve of 2%.

The report prompted the chairman of a House Financial Services subpanel, Rep. Scott Garrett, R-N.J., to say that “a taxpayer bailout of the Federal Housing Administration is all but certain.”

And Ed Pinto, a resident fellow at the conservative American Enterprise Institute, says the truth is even worse. “

Illustration By Nate Beeler

  We are being pushed into poverty by the very powers that are supposed to protect our interests .

   It’s fast approaching the time to abandon pitchforks and torches and pick up the gun .

   You think that is extreme ? Then explain to US exactly what authority can now be trusted .

   Read this from the New York Sun .

” So it turns out that the great scandal of the London Interbank Offered Rate has spilled over to the Federal Reserve. It seems, according to a dispatch of Reuters, that the Federal Reserve Bank of New York “may have known as early as August 2007 that the setting of global benchmark interest rates was flawed.” It was consulted when the problems first arose at Britain, and it sent some suggestions for reform. But these are now looking inadequate. “As one of the world’s most powerful regulators, the New York Fed has the power to ‘jawbone’ banks to force them to make tough decisions,” Reuters reported, attributing the point to a former associate general counsel at the Federal Reserve in Washington, Oliver Ireland.”