Browse by Tags
-
Posted
Apr 03 2009, 10:34 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
 It seems that the game continues. Now it is Fannie Mae (FNM) and Freddie Mac (FRE) that plan to provide bonuses that are sure to fan the flames of an already irate public. Remember we are talking about companies that have been sucking the taxpayer dry for the longest time yet billions of dollars are still being poured down the endless pit. Is it fair? Is it justifiable?
Well, that depends on your perspective, it seems. For the 7,600 employees eligible for a piece of the $210 million in bonuses, there is clearly a need as economic times have been tough all around. But that is not enough reason to give anything to anyone involved, as the company is clearly unprofitable. It is time that we look into entitlements and the question of why we, as a country, are content with providing gratuitous trophies, standing ovations and bonuses
Read More...
-
Posted
Mar 24 2009, 07:29 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
The phrase “taxpayers will share in any upside” always makes me shudder.
And with good reason: Last September, as Fannie Mae (FNM) and Freddie Mac (FRE) crumbled under the weight of their massive loan portfolios, the U.S. taxpayer ponied up $2 billion to rescue them, along with $200 billion in guarantees for future losses.
We were told that our investment would be well-protected, since the companies barely played in the subprime space: Their $5 trillion portfolios consisted of only the finest prime mortgages. One Wall Street Journal columnist even called Fannie and Freddie “a gold mine.”
Six months later, Fannie and Freddie have chewed through almost half their taxpayer-funded safety net. With delinquencies on prime loans rising, and home prices tumbling in high-end markets, losses are likely to keep growing -- as will the taxpayer's obligation.
Read More...
-
Posted
Oct 24 2008, 01:38 PM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
This just in: Alan Greenspan isn't infallible, and the banking industry's hard-headed self-interest doesn't count for much when unleavened by a smidgeon of insight.
Greenspan, the former Federal Reserve Chairman, told a Congressional hearing that the credit crunch exceeded anything he had imagined; he goofed in thinking that banks would act intelligently to protect themselves from risky mortgages.
Democratic Representative Henry Waxman of California and chairman of the House Oversight Committee, said that the Federal Reserve, the US Treasury and the Securities and Exchange Commission pushed "the prevailing attitude in Washington…that the market always knows best."
Please, people: We're facing a serious mess, and turning things around requires more than artful butt-covering in the final days before November 4th's presidential election.
Read More...
-
Posted
Oct 19 2009, 11:33 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
If you own shares of Fannie Mae (FNM) or Freddie Mac (FRE), you're sitting on a whole lot of nothing, according to analysts at Keefe, Bruyette & Woods. The analysts cut the price target on both stocks to zero and downgraded them to underperform. In order for these mortgage giants to survive, the analysts said, they need to be recapitalized from the banking industry. But even if that happens, their common and preferred stocks will be worthless. The government has funneled $98 billion in capital into Fannie and Freddie, according to MarketWatch.
Read More...
-
Posted
Sep 11 2008, 09:01 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
I have written on this topic several times before, but I would like you to take extra care and really absorb this today as I can't help to feel that between the energy fiasco and Fannie/Freddie, we have been ripped off. Later this week we will find out just how bad as the Commodity Futures Trading Commission (CTFC) will be releasing a report on oil market speculation.
If you have been a regular reader of MSN TopStocks over the past several months, I have been talking, writing, yelling and ranting about the obvious and rather incredible speculation that has occurred within the energy futures markets. It is remarkable how during that time, there has been a never ending stream of naysayers who have been confident that supply and demand is the only rationale for the parabolic rise of crude oil.
Now mind you, this comes from some pretty smart people who have been certain that in the short span of only a few months the world's supply was being outstripped due to the massive industrialized growth within China and India. Then, just as fast, that all changed because (as the tale goes) the price escalation actually dampened global consumption. Come on fellas, do we really look that stupid
Read More...
-
Posted
Sep 16 2008, 03:15 PM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
Since when do we rely on government to intervene in every case of a failing business? If anyone wonders why we have such a mess on our hands, look no further than our boneheaded government that has obviously forgotten its way. Think of this week's action within the financial markets as a result, not the cause of our problems.
AIG is in a battle for its very existence, Merrill has been absorbed and Lehman is bankrupt. And we're only part way through the week. What's next?
These days, many people are wondering what our government will do to stop the insanity. Yet, in a capitalistic society that relies on a free market system, we should only look to the government to guide and regulate against fraud and the manipulation of the system. Sometimes known as a laissez-faire philosophy, the government has a role, but it
Read More...
-
Posted
Sep 11 2009, 04:12 PM
by
InvestorPlace
Rating:
Money Blog: Top Stocks Blog - MSN Money
This article was written by InvestorPlace's Jim Woods.
Cash for Clunkers; you've got to admit it's a catchy phrase replete with alliterative genius. The creativity here is especially surprising, given that the name was likely concocted by a government bureaucrat. I guess it's not surprising that any government program with the word "cash" in it is going to draw some attention. I mean, who doesn't want to get some cash back from the government?
So, in honor of this paragon of government generosity, I propose that we extend the "Cash for" program to a few other sectors of the economy. I mean, why should the auto industry be the only one to benefit?
Bing: Latest on "Cash for Appliances" program
After all, if giving cash away for broken-down cars works, why not apply that same logic elsewhere? So, without further ado, let's take a look at a few sectors that could use a little government stimulus.
WARNING: Readers lacking a sense of satire may want to proceed with caution.
Read More...
-
Posted
Feb 26 2009, 11:42 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Wall Street’s new mantra: We broke it; the taxpayers own it.
Perhaps it’s time for taxpayers to get back to basics and tell bankrupt companies: You broke it; bye-bye.
The world didn’t end when Lehman Brothers died. Would American International Group (AIG) be any different?
The Financial Times reports that AIG and Uncle Sam are deep into skull sessions to restructure the failed insurer into at least 3 government-controlled divisions in an effort to keep the increasingly cadaverous company alive. Plans could be announced as soon as March 2.
Read More...
-
Posted
Mar 12 2009, 06:48 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Despite herculean efforts to stop the foreclosure juggernaut, Americans are still losing their homes at near-record pace.
According to RealtyTrac, a firm that sells default data, foreclosure filings rose in February to nearly 300,000, up 6% from the month before. This figure is the third highest for any month since the housing market turned south in 2005.
As property values fall, more borrowers are finding themselves underwater -- owing more on their homes than they're worth. This, coupled with job losses, means homeowners are missing payments at an alarming pace.
Sky-high foreclosures are even more astounding when myriad loan-modification efforts and short-term foreclosure moratoriums enacted by big lenders like Fannie Mae (FNM), Freddie Mac (FRE), JPMorgan (JPM) and Bank of America (BAC) have been taken into account.
Read More...
-
Posted
Dec 15 2008, 06:07 AM
by
Bernhard Warner and Matthew Yeomans
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site The Big Money.
The fallout from Bernard Madoff's alleged $50 billion Ponzi scheme just keeps getting worse. According to the Wall Street Journal, European banks, including Spain's Grupo Santander SA and France's BNP Paribas, are heavily exposed to the fraud, for roughly $3.5 billion. "Santander, the eurozone's largest bank by market value, said its clients had an exposure of €2.33 billion ($3.1 billion)," the newspaper writes. BNP Paribas is only slightly better off. It acknowledged on Sunday that "it could lose as much as €350 million as a result of the alleged fraud." According to Breakingviews, you can also add Italy's Unicredit, Dublin's Pioneer Investment, a handful of private Swiss banks, the London-based Man Group, and Japanese broker Nomura to the growing list of scalps from the Madoff scam.
Facing such staggering losses, the big question now is: How in the world did the Securities and Exchange Commission miss this one? To give the agency its due, it did open an investigation into Madoff 16 years ago to try to divine how he could pull off such consistent returns. The matter was later dropped, though, adding further criticism to an agency with lots of critics these days. "This is a debacle for the SEC," Joel Seligman, an SEC historian and president of the University of Rochester in New York, told the WSJ. "The commission has a lot to answer for."
Read More...
More Posts Next page »
|
