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Notice how that article, quoting a fannie mae (government controlled) economist kept hammering MODERATE recession? No. Major recession, especially if the food situation happens as farmers have been warning. Farmers are beaten to death right now, really, really high costs of diesel, fertilizer and labor, so they plan to plant smaller crops. Brandon had his dirty little paws in unbalancing all three of those farming needs.
People don't buy houses much in a recession, nor do they throw buckets of money at cap raises. Those saying fast track release...hey, I'm all for that because commons will get their voting rights back, and we will be able to hopefully defeat some of the nonsense, but release now has upped the GSE's equation/chances of becoming unstable if another 2008 hits, especially if government tries to use seniors or warrants in any way other than capital for the GSE's.
They could always drop that 50 basis point fee that they usurped from the GSE'S that WAS used to cover covid losses. I forget what they made it part of (anyone help me out on that?) Anyway, they could drop that fee to get rates down 1/2% if they were truly worried about affordability. But I bet they don't.
Simple economics. Rates go up to stop hot house prices and up bidding of houses, soon sellers are in a bind and drop price of said house to attract those desperate enough to be sosked by the higher mortgage rate, so less money in the pocket of the seller and buyer, more in the pocket of the one raising the rate....but that's if the rate does not cause a total recession of home buying. The new homeowners, those who bought at lower rate will now lose any equity or appreciation because sellers will be fighting by lowering home values to attract the few who can afford the higher rate. At some point, the current new owners will see that they have lost X-amount of equity/value but will need to still pay that money. This is what created the walk aways in 2007/8, people dropping keys at the mortgage servicers or banks and just claiming bankruptcy. Many did that including a few I worked with who had also leveraged the home equity loans that would let you barrow 150%, 200% of home value. Those were the first to walk, then the upside down equity owners were next.
I doubt they try any release in this economic catastrophe. Why?
-Way harder for GSE's to raise capital now. Economy heading for
recession or stagflation.
-confidence in this administration is 38% and falling, so yeah many,
many, many will not invest in this
-They are sticking to their 1,000 cuts plan, verified already by
numerous give aways already.
-Thompson confirmation won't mean squat other than she'll have
more authority to do different underhanded give aways.
-Yellen has said more about Putin and abortion than the housing
markets relative to the GSE's
-only midterms and 2024 will get this done, AND that's if we get
the current clown pose replaced.
GSE release. Who ya gonna pick? Moe, Larry and Curly OR Brandon, Sondra and Q-tip ???
I know who I'd go with.
Whoa, that's a great catch! Someone needs to point that out to FHFA and treasury, or better yet, pointnitnout to a news outlet and say the GSE's are almost bankrupt. See how the idiotsvin charge respond.
Yes,,well done Guido! That needs to slap so many more in the face along with being sent to newsmax, fox, etc
Would love to see one of these hack finance outlets round up Thompson, Calabria, Otting, Watt (who am I forgetting under Barry)and all 3 previous treasurers and let them swing! Free for all. Why will we never see that happen? Would feelings get hurt? Fingers get pointed? Unknown taboo things get said that are supposed to be kept secret by the cabal in charge? My thought - all of the above. So round up that group of dysfunctional DC inbreds and let's have the truth.
I don't think pitting home buyers/owners against students who want loan forgiveness because they over spent and over partied is going to work. They are also going to be looking at how to finance abortions when SCOTUS rules taxpayer funded ones are unconstitutional and the simplest fix is for those women to keep their dam pants on if too stupid or cheap to use a contraceptive, or make their "friend" put on a raincoat. But alas, you run out of other peoples money, so where will it come from? This is all election tricks being played on select radical groups to stimulate a dezired affect. The lemmings will surely comply.
Calabria had one point absolutely correct on that post Navy put up. The window for any cap raise has closed. Look at the market!!!
It will take a year or two for the market to come back together, so anyone claiming S. Thompson/Biden doing a cap raise is deluded fantasy dreaming. 2024 turning out to be our best hope, especially if a huge head turnover in congress and senate.
That's quote of the year, if not decade, from Thomas.
Good bye road money. From a CNN article.
Still no one with info as to why FNNA was not part of the class? I'm talking the real reason why!
I guess we find out when this gets settled.
I wonder if the determined path is to make one GSE a utility, and release the other as private? They were all bytching about competition for awhile.... So
I'm with you Golfbum22. My motto as of 5 years back : pray or hope for the best, but expect the worst. If you know anything about these criminals by now, it will save you a ton of grief.
If one day a judge grows a pair and helps us, it will be a very pleasant surprise.
It must be a free chicken sandwich lunch palooza.
Maybe a roofie then
But wait a minute! Swear I saw a GB post saying maybe all those common holders who sold, saw the JPS light? Lol
Man, a 3 penny down or 9 penny down day is cause to distribute some free Xanax to the JPS crowd, lol
Ya got that right! Government is abunch of vindictive SOB's
You noticed that to? Lol
Beware this administration doing anything on this! My biggest fear is that we become another tool to be used by the current administration group to deflect from other screw ups that are going on, thereby putting us in worse shape.
With the current track record of those in charge, I'd rather see what happens after midterms and later, after 2024 election. Honestly folks...who here has any confidence in the current group of clowns?
Truer words have rarely been spoken! That is a great rational statement.
Yeah there is! My two orders still have not filled. Donkeys playing hee haw games
Fidelity still has not filled my two standing orders for 14300 shares each of FMCC and FNMA AT 0.70. Now I'm wondering if their new rules regarding OTC purchases and sales are going to affect excution in a timely manner. Anyone else encountering order fill or sell problems?
That's not compketely true...they raise cash EVERY quarter
Whoa! The Twitter crew should slam the twitter accounts of all involved. Q-tip, S. Thompson and even Calabria, Mnuchin, etc. Everyone and anyone who was involved in this, including numb nuts Bush.
Don't think I've seen that before - thanks
Lol. Lmao . Reminds me of Detroit
We are all worth whatever we are worth, once released. I buy commons because there is no cap on it's worth, like prefs.
No one knows squat as far as how this ends. The can't bankrupt, they can't release financially weak, they can't steal anymore if they want strong twins released and stock market players with big money to hop in to help with capital. Government is between a rock and a hard place, all theirbown making. Even if they win all the court cases, they still can't keep this going on and on. Eventually they will assume the GSE debt or release. That's the two very real choices.
Time will tell who is on the better side of this trade. We still have a ways to go.
Too bad no more JPS cheapies, but then again I would not buy at this run up in price for no reason.
Believe whatever the heck ya want. All in the same boat, FOR 14 YEARS! Prove me wrong.
You'll be in the same boat at release, watch.
That'll get ya approx 87 shares of one of the GSE'S!
Markets ALWAYS over react. Feds increase and future increase talks are spooking Wallstreet. We are correction territory after this route. Maybe another one will happen, or not. Either way, the market finds a bottom. I see the twins commons 5-6% down, dam straight, I'll buy. Nothing, and I mean absolutely nothing in the news that provides any logic as to why commons are bleeding and prefs going up! I'd worry if both were headed down. Through the years both have mostly headed in tandem, where one usually catches the other after not too long. Now, there's no reasonable logic as to how both commons and prefs are moving. Total manipulation on someone's part is all I can come up with.
Time to buy! I think... maybe back up tomorrow.
Navy can tell me if my 14300 share order for fmcc and 14300 of fnma fills. Lol crossing my fingers. We truly are TINA as GB advertises. There Is No Alternative. Hopefully this admin does zero, zilch. Our next admin crew will do what's necessary or midterms will start moving the needle for us. JMO
This was all put in place to guarantee government wins IF LUQUIDATED. Bankruptcy. The seniors and warrants were meant to destroy the rest of us holders in the event of a bankruptcy. It's common sense naming of these guarantees, definitions as follows.
Liquidation Prefference:
A liquidation preference is a clause in a contract that dictates the payout order in case of a corporate liquidation. Typically, the company's investors or preferred stockholders get their money back first, ahead of other kinds of stockholders or debtholders, in the event that the company must be liquidated
Warrants:
What is warrants in stock?
A stock warrant is a derivative contract between a public company and an investor. A warrant gives the holder the right to buy or sell shares of stock to or from the issuing public
Specifically says in HERA the seniors CAN NOT convert to commons. Nor any other type of security.
E X A C T L Y ! Or more suits to follow, I would guess.
Larry Kudlow
If going by people who have said it out loud:
Max Waters
Trump
Otting
This is an interesting article with a bit of a different take on forecasting the house buying situation to come.
https://themortgagereports.com/91212/inflation-housing-market-2022-podcast
How will we fare with 6-6.5% mortgage rates? This article is very feasible. As it states, the Fed is trying to accelerate a recession. Crash the market and housing. The GSE's will absolutely need help from the courts, and no, not any share class is going to be uber safe. Wake up! You're in a conservatorship. Lamberth will wet noodle on contract claims BECAUSE HE CAN. He can kick the can to if he wants. This is what you get when you put people in charge who have zero economic common sense.
https://mishtalk.com/.amp/economics/how-high-will-30-year-mortgage-rates-go-in-2022
Rising rates should help savers, retirees, but that never happened last time rates went up due to the greed of all the financial institutions (banks). There's not much happiness in a rising rate, high inflationary, politically inflammatory environment.
Therefore, only an idiot would try to release us now. Midterms! That will hopefully get the USS GSE to begin to turn.