Freddie Mac Posts $6 Billion Quarterly Loss
by PubliusFrom AFP:
Troubled US mortgage firm Freddie Mac reported Monday a second quarter net loss of six billion dollars and sought another 1.8 billion dollars from the Treasury to contain the red ink.
The government-backed company said its strategies to boost business and “sustainable homeownership” were taking hold but cited high unemployment posing “very real challenges” for the already embattled housing market.
Freddie Mac suffered a 6.009 billion dollar net loss attributable to common stockholders in the April-June period from a loss of 7.980 billion dollars in the first quarter and 840 million dollars in the year ago period.
“We recognize that high unemployment and other factors still pose very real challenges for the housing market,” said Freddie Mac chief executive Charles Haldeman.
“With that in mind, we continue to focus on the quality of the new business we are adding to our book to be responsible stewards of taxpayer funds as we support the nation’s housing market.”
Freddie Mac and its twin state-backed mortgage firm Fannie Mae have been riddled with massive losses from loans they acquired during a home mortgage meltdown that plunged the US into a brutal recession in December 2007.
Fannie Mae said last week it lost 3.1 billion dollars in its second quarter, and needed 1.5 billion dollars from the US Treasury to wipe out its deficit as of the end of June.
Freddie has sought more than 60 billion dollars in federal aid so far while Fannie’s bill has ballooned to more than 85 billion dollars.
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142 Comments
This is going to get real ugly, real fast for FNMA & FMAC and the housing market folks. Much SHTF after elections.
More hard earned money down the drain of Socialism.
Will this free fall ever end?
God help us all.
Wow that's a lot of money, where'd all that money come from to begin with?
Oh, wait. Crap.
And they're asking for more money! This is purely insane.
Maxine Waters: Through nearly a dozen hearings, we were frankly trying to fix something that wasn’t broke. Mr. Chairman, we do not have a crisis at Freddie Mac, and particularly at Fannie Mae, under the outstanding leadership of Franklin Raines.
http://hotair.com/archives/2008/09/29/video-democ...
No that's statism.
Fannie/Freddie fueled, if not caused along with CRA, the real estate boom. They did this to buy votes for Dem congressmen, provide campaign funds to Dem congressmen (Obama received the second most amount of support from Fannie Mae, just after corruptocrat Chris Dodd), and to funnel millions to the crooks in charge (like Jaime Gorelick, she who enabled 9/11 with her "wall" between FBI and CIA).
Giving Freddie more money without cleaning it out will just reward those who caused the real estate bubble problem. Better to wind those two organizations down and let the private market decide if someone is creditworthy or not, instead of providing a buyer for all those junk loans CRA forces the banks to make.
No. No. No. There is no crisis at Freddie Mac. maxine waters said so.
Where is franklin raines when you need him?
Now come the real bailouts. Wonder how they will serve this delicacy to the American people.
A billion here, a billion there, pretty soon you're talking real money! (Paraphrasing Sen. Dirksen, one of my favorites of all time).
I know how easy it is to say, "Oh, it is only $20,000,000," or, "it is only $80,000,000," or "it is only $240,000,000" a year that will be taken out of the pockets of the taxpayer." But where will it finally stop? I do not know. An old man once taught me what a million is. He said, "Look at your watch, and watch the second hand. You can see it every second, every minute, every day, every night, every week, every month, every year – and in 3 years it would go around 1,000,000 times."
[Congressional Record, March 15, 1951, p. 2479]
A hundred million dollars, Mr. President, is only a "drop in the bucket." I grew up at a time when on Sunday, if I had been a good boy for the whole week, my mother gave me a penny and said to me, "My son, don't spend it all in one place."
We have come a long way from then. The classic example is here tonight, when the Senator from Colorado says a hundred million dollars is "a drop in the bucket."
No wonder we are nursing a $295 billion debt.
[Congressional Record, June 8, 1961, p.9896]
We are becoming so accustomed to millions and billions of dollars that "thousands" has almost passed out of the dictionary.
[Congressional Record, January 10, 1964, p.?]
The administration loves crises like this. They can play hide and seek with it. When McCain was up in the polls, the biggest fiscal crisis in generations came up. McCain pointed out that the bad lending should stop and he had proposed bills to stop it.
Obama accused McCain of causing it by… working with Bush who caused it. Meanwhile Obama called for the bad loans to continue. Obama even worked hand in hand with Acorn who pushed for the loans in the first place!
Now we know beyond a doubt that leftists caused the crisis, and Obama voted for the same policies that caused it. Meanwhile level-headed folks like McCain and Bush tried to stop the loans but failed to halt it.
Now, if it is the fault of Bush and McCain, it is their fault because they didn't frogmarch Barney Franks and Maxine Waters out of the House and put them in a jail for their role in this. If Bush and McCain could have done more, they could have fired all the Freddie Mac and Fannie Mae workers who took a part of this.
If Bush and McCain had done this they would have been called racists, homophobes, and murderers of poor people who will now die in the cold. But it goes to show you should do the right thing regardless of what the evil people can call you.
After all, they said this about them anyways.
Picture caption
The house that congress built.
Fannie & Freddie need to be dissolved. The govt should not be involved in mortgages, student loans or attempting to make the trains [Amtrak] run on time . The federal govt does nothing well; it needs to return to its Constitutional role and return power to the states where it belongs.
We need a tax revolt in this nation.
This is the epicenter of the financial earthquake our nation experienced. NOT ONE WORD in the "Financial Reform" bill that passed through congress.
Im so sick of Fannie and Freddie. I hate all our tax dollars going to them, so they can buy dem votes. The corruption makes me sick!
I dont see the reason why people dont understand these two quasi-governmental agencies caused a great majority of the economic hell we are going through.. Yet fannie and freddy are left untouched In the financial reform legislation… Barny Frank and Chris Dodd should be in jail..
If it weren't so dangerously sad – it would be hilarious to watch the Lib twist in the wind on this one. Having just passed a bill that "regulated" all the OTHER banks and financial institutions, even the ones that weren't doing anything wrong, and claiming it's because they were "bad" – and on top of that EXCLUDING Fannie and Freddie "Because" they were doing it right: this creates a PUBLIC dilemma. If they were doing it "right", then why are they STILL losing money if BoBo "fixed" everything?
Of course that WANT to give them the money, but they know they are already in 5 mile deep water with this past year of over-spending, they will piss off even MORE people who's eyes get opened with their hypocrisy – OR not fund them and piss off all the Libs who need that payback money (like that's not what this all is).
I can see this being part of the Lame Duck session agenda – because most of them will already have been fired, they will have NOTHING to lose. Although I can see jail time for quite a few in the future.
Holy hell KILL IT WITH FIRE!
Always a favorite talking about Obama.
http://www.pagetutor.com/trillion/index.html
"to be responsible stewards of taxpayer funds as we support the nation’s housing market"
And exactly WHY are "TAXPAYER FUNDS" being used to "SUPPORT THE NATION'S HOUSING MARKET?" I can't remember where that shows up in the Founding Documents.
Freaks.
"Freddie Mac Post $6 Billion Quarterly Loss"
No, the US taxpayer posted the loss, since under this regime, it is us who will be forced to pick up the tab!
And these are the folks who are gonna do a new round of HARP?
Okie dokie then.
Why the hell not. Just print some more money while you're runnin off another batch for the elections.
Gotta hand it to the Federal Government.
They sure know how to run a Railroad. Right off the tracks.
Odd, isn't it, that aboput two months ago, Freddie and Fannie both filed docs with the SEC wherein they were to be delisted. Why, you might ask? To skirt the reporting requirements.
Say, wasn't Franklin Raines and Jeannie Gorelick involved in this fiasco?
Here is a little ditty, that is my original:
"The smoke is gone,
the mirrors busted.
Those in charge,
just caint be trusted!"
Surprise, surprise… the two government sponsored entities (Fannie and Freddie) that created the unlimited market for sub-prime mortgages and caused the financial crisis continue to need to be bailed out at taxpayer expense. Until they are broken up and privatized, they will be on a taxpayer IV where every drip is a billion dollars down the drain.
So… we have now become a nation of squatters? There should be a published list for all to see naming names of all these “Toxic loans”. Where are they concentrated? What are the demographics? How many of them are there? How many of them started defaulting on their loans as soon as Obama and this regime of fiscal criminals came up with all this continual extension bailout nonsense.
Equal does not mean Same. It was never going to be a good plan to MAKE everyone a homeowner. Some people never have nor ever will be responsible enough to pay for anything.
The political lynching that Pelosi and her pals did to Bush over The War(s), Enron seen petty and insignificant… what these people are doing they should all get kicked off the freaking planet.
Hey Amtrak isn't doing so well either. It's another money pit. Time to let it go also..
Pumping Bwarney Fwanks organ.
Just STOP the bailouts!!!!
http://www.cafepress.com/politicalstckrs
For those who may not be aware of the 'players' at Fannie Mae,,,google up "Jamie Gorelick"
Talk about a slimy sister in the bowels of the democratic party!!
Pay particular attention to her current gig.
Progressives love to feed black holes like Fat Fannie, and Bloated Freddie. /S
http://img687.imageshack.us/img687/8538/liberalbl...
Correction,,,Jamie Gorelick
And why she and Franklin are not in prison is further testimony to the Effed up system we have in congress.
Thanks.
You know who I meant.
Do some research on that larcenous biatch.
I have followed her trail for years now. Way back in Clinton's reign. I am thoroughly digusted by the fact that she sat on the 9-11 commission when it is she who has the blood of those victims on her hands.
AND they'll get it !! Bawney's mouth will spew the same crap: everything is fine, nothing to look at.
Or blowing his bagpipes.
OFF TOPIC:
It has been nearly a week since the elections in Missouri and on POLITICO not ONE WORD about it, though I am not surprised but it has been remarkably absent from much of the media. I think the libs are too afraid to even think of it much less talk about it.
November, the pillars of heaven will shake and a whole lot of dems are going to,,,,,,,,,
I have a heck of a deal for the US Treasury. F and F need a billion and a half. Two million will wipe out my debt! I am awaiting the check.
That was a nice photo of the house until it began to sink into Freddie and Fannie's money pit.
I bet you won't hear one word about this on the F-MSM. The rotting Fannie-Freddie corpse is just being propped up from all sides until it decomposes into a progressive blob.
Sick. I am sick of this administration and the corruption. Glenn Beck is just talking about this now and he says Hussein wants a mortgage bailout for everyone. Pre-November politcal ploy.
Insane, they are all insane!!!
Whadda surprise. And we just received another 2000 pages of crapola legislation that no one bothered to read, promising comprehensive financial "reform". It destructively intrudes into many non-finance-related aspects of business, yet ignores Fannie/Freddie, which was largely responsible for the near evaporation of the global financial system in late 2008. What a feckless, destructive bunch we have in Washington.
Insanity.
ok, I want to know what the hell they are doing with all this money anyway…
according to the census <a href="http://(http://www.census.gov/compendia/statab/2010/tables/10s0963.pdf)” target=”_blank”>(http://www.census.gov/compendia/statab/2010/tables/10s0963.pdf) There were 48,742,000 TOTAL mortgages in the US in 2007 (this includes regular mortgages, home equity lump sums & home equity lines of credit)…. the average mortgage (according to here: http://wiki.answers.com/Q/How_much_is_the_average... is $136,000 with 10% being over $250,000.
Per my (very basic math, and not taking interest into account) it would take $14,622,600,000,000.00 to cover $300,000 of debt for ALL OF THE 48,742,000 MORTAGES IN THE US. Less than 20% of all mortgages have defulted or are in defult at this point. That leaves $49 billion left just from what FreddieMac has asked for.
Again I ask what the hell do they need this money for?
Deck chairs argument. Maybe a better argument would be a system to replace mortgage lending that would put a permanent end to the problems that are systemically caused by fractional-reserve lending. What do you think?
Her name keeps popping up like a bad disease. Death and destruction follow her everywhere she goes.
so what door is freddy throwing the money thru?Their laundering some commie/marxist group.
wheres it going?
a whole lotta racketeering going on here
kinda like herpes!!
Bend over taxpayers!
Barny's getting ready to stick his little FRANK where the sun doesn't shine!
Oh that was so good. Thank you. Thank you.
I now call them the F-Bombs!
All this nonsense that is going on now was,…..
to be expected and foreseen even by Ray Charles,………
this is no big deal folks.
The real big deal will be when the Republicans take over and,………
help institutionalize all this crap.
Recently China announced it would invest in Fannie & Freddie. Clearly Geitner and the boys have told the Chinese these two politically connected instutions will not be allowed to fail, thanks to the American tax payers.
Cowboy, regarding your and StoryKeeper's reference to Jamie Gorelick, of Freddie and Fannie "fame:"
Every time I read that woman's name, I can't keep myself from thinking that these days, the term, "Gorelick" also conjures up another very unsavory mental image!
No, no. Wait Pleeeeease. The NorthEast Corridor travel is intolerable (west coast too?) With "fly the friendly skies" a thing of the past Amtrak just might make it. This summer the "vacation" routes, Lake Shore Limited, California Zephyr have been packed. Tolerable family travel. Amtrak might make it yet???? Anyone else think so? Anyone know? I just ride the thing.
A billion here, and a billion there….first thing you know, you're talkin' bout real money.
Fannie and Freddie guarantee the paper they issue. That guarantee is supposed to be backed up by F&F's assets but since they're both effectively bankrupt, everyone who pays taxes has to foot the bill. This was written into the first TARP legislation.
Asking the holders of F&F's paper (CDO's held mostly by financial firms) to take a haircut is not an option because that would put them underwater and then we would be saying hello to TARP II (or III, I lost count).
House and Senate for sale some damage but a real fixer upper
Cost negotiable but it will take a life long comment
The gift that keeps on giving
H E double Tooth pick
The money funnel, the rat hole attached to the politicians and friends, foreign and domestic bank accounts!!! One thing about it, they don't have to worry about the law, there is none that polices them, they can run rampant!!! Another stroke of the pen, another 100 Billion dollars of yet earned wealth transferred!!!! Wimpy, Popeye's friend, was a great teacher and a likable gent/bum, except we can't tell his students no, they don't ask, they evolved into DEMANDING GIVE NOW, FOR FUTURE REWARD/PAYBACK!!!!
There are about 138 million tax filers in the United States of America, about half of whom pay any federal income tax. (WikiAnswers). If less than half of the people living in the US file taxes, and half that file pay, then onlu 1/5 of people living here support the entire country! If this is the case this country is done for! I am tired of supporting 280 million people that live here. I don't know what the answer is (although I have a good idea), but someone better come up with one quick! I say cut the non payers off (giving each family 6 months to get their shit together), then they will either leave this country or starve to death. Either is fine by me!
Funny.
She is at the law firm representing BP……….
I know.
Don't get my cartoon mind started.
I could run with, and get a lot of mileage out of the Gore-lick name.
That could be as humorous as the Hymelick Manuever.
Progressives love to feed black holes?
They sure fed Shirley Sherrod long enough.
Hopefully, they will all turn and look back at Soddom and Gommorah (Washington, DC) and be turned into pillars of salt.
Failed attempt to get tax payers to buy homes for demo special interest group.
I think if you can't pay, don't play. Seriously though, I would like to see it completely privatized without any govt input. Govt has no need to be in the home business. Heck, it can't even run itself, let alone something that involves math, ratios, percentages, and logical thought.
LOL! good call! It fits nicely.
I used this source for my comment. Hope it helps.
http://www.downsizinggovernment.org/transportatio...
Amtrak should be turned over to the private sector to manage and maintain.
Thanks for the response – I wasn't thinking in terms of assets.
Although I still wonder how much do they really need (have on hand) to guarantee , if they held 100% of all the mortgages (round to 49 mil) and each mortgage had an assest value of $1mil, then $49 bil on hand would cover the guarantee, no?
Maybe Obama can trade our houses to the unions in exchange for pension payments or just let them move in for free in exchange for pension payments. Maybe our grand kids will get a nice house rent free in exchange for funding our entitlement programs. I hope a nice union member will toss me a couple of bucks for cleaning my old house for them.
I remember when a nickel could buy a real candy bar or a bottle of coke. I also remember when 50 cents would get you a good sized cheeseburger, potato chips, and a large cherry coke.
I would prefer bailing out my neighbors to bailing out wall street.
Oh, wait. Crap.
Works for me!
More like aids
Don't forget Barney and Chris, they did their job so well they got to write the wall street reform bill.
-even got it named after them.
Oh, I know this is going to hurt, but according to Henry Paulson, Freddie and Fannie came late to the game. They started with sub-prime loans in 2005-6. When the housing bubble burst in the summer of 2008, China was holding a great deal of this debt. If we did not back these loans, they were calling in the rest of their loans which we could not pay. So Bush had no choice but to back the Freddie and Fannie loans, too.
Count me in!
Sigh, "DOT published a report on the cost of federal subsidies… that was so bad Congress stopped publishing the report." Sort of says it all. Thanks OldmanRick for a great link. But I still choose to ride the train rather than drive anywhere near NYC.
The only role Bush played in this entire mess was,……
not having the balls to dismantle what Carter and Clinton created
And if you saved up your change in a jar you could actually buy something….
Who didn't see this one coming. I write about this and more on my blog, The American Truth Machine.
http://truthmachine.blogsome.com/
Just like your daddy BO. Blame someone else for your problems. No, he didn't create this problem, yet he can't fix it either, especially after giving billions of taxpayers money to them and yet they still FAIL! Loaning money to non-prosperous individuals ALWAYS fails!
Must refuse to respond… even I have standards.
I mean Barney Frank is in charge… yes I said too much.
Part 1. Fannie & Freddie were the last pieces of the "Community Reinvestment Act" conspiracy. Barney F., Chris Dodd and their reach around buddies wanted to put everbody into a house. It drove the housing boom by opening the market to easy $$$ and subprime/variable interest rate (Say ACORN housing assistance) loans for people who couldn't afford them. During the boom flipping houses was easy because the value (Vastly inflated) kept rising so you could unload you home before the interest rate kicked up and get a bigger one and on and on and on until the market caught up with itself. BOOM!!!! lots of good people (Couple million) and lots of speculators got cought without a chair when the music stopped. Bernie Maddof must be saying "And you put me in jail for a couple billion WTF!".
Part 2. This is the best plan (Ponzi scheme) the Progressive's ever hatched. Usually the unintended consequences start before the ink is dry (Oblabla care) but this one ran for years piling up debt that Barney and Co. thought would never come due. I guess they thought the value of real estate could go up forever. Fannie and Freddie need to be investigated and the laws changed to stop this maddness! As is we (Those of us who actually pay taxes) will be paying on this Progressive wet dream for years provided it doesn't crash the economy.
I can garden, I can bake bread the old fashioned way with sourdough, I can cure and smoke my own bacon, I can do a lot of buthcering tasks (and can learn).
What do you guys got?
You can blame this on the republicans and George Bush. And here's your proof if you can handle it!! !http://www.youtube.com/watch?v=kNqQx7sjoS8
I see you are still having problems with reality. You better take your meds.
Barney Frank and Maxine Waters could not be reached for comment… They had pedicure and manicures scheduled ….
Please watch this video .. it is so good !!!! Just brings a smile to my face remembering when the Democrats took over Congress in 2006 …..
http://www.youtube.com/watch?v=NJiQRe8Mqao
Then Paulson is lying, since Fannie Mae managed in 2006 to increase their share of the subprime market from 22 to 25%. In 2001, Fannie/Freddie purchased 11.5% of all subprime loans–partly as part of providing "affordable housing" to those without the credit or ability to purchase loans from reputable lenders.
The Bush administration recognized the exposure of Fannie/Freddie as well as the dishonest accounting and attempted to rein in the monstrous growth of subprime loans by 2006/7. But Democrats like Obama and Dodd, fat from graft and campaign donations, stymied attempts to rein in the increasingly out of control lending.
However, once the US government through Fannie/Freddie purchased the bad loans the USA was obligated to honor them.
Right now I 'got' a splitting headache, from reading that headline.
Ya me too, Im in a pissed off mood after this weekend anyway.
I owe you a cold one brother, we're all in this together.
Daeuum Rick, now I'll be wanting a real old style cherry coke all night……….crap…..
" How many bad loans were made to illegals?"
LOL…..I'm going to pose your question to my Congressman when he has a town-hall sometime
this month, ………..well if Piggylosi ever lets them get home to their districts.
.
Agree!
Learning about gardening a little more every summer. I can bait a hook, fish, and clean the fish. My sister knows how to can and made pickles this summer. I can also crochet clothing. My grandfather raised sheep and my mother grew up raising sheep. I have a close friend who raises goats from which I could likely secure a few. My family has some land, and our cousins still farm that land on lease.
Fall back to the farm is the default emergency position for the immediate family. We'll figure out how to make things work.
It's already happened. Bawney wants even looser lending restrictions.
Oh, haven't you heard? Our vote was irrelevant because not enough people showed up. That's the spin I've heard, but then, I keep FOX going.
Yep we long time farm folks look to have lots of new neighbors trying to scratch out a
living from the land sooooon. Looks like your plan is better than most. At least you have
folks still on the land that will help you fill in the blanks. We'll all be learning many new
skills, I fear. Like how to survive without electricity, shudder)))))))!
.
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