ANTS PRIVATE CORPORATION.
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TO ME THE BOTTOM LINE IS THAT The US GOVERNMENT has no business in guaranteeing mortgages. That is the PMI BUSINESS. jmo
YOU ARENT PAYING ATTENTION TO THE HEARING. LOTS OF OPTIONS TO DEAL WITH FUTURE MORTGAGES. ONE THING IS NOT INCLUDED IN THAT OPTIONS....FNMA VIABILITY IN THE FUTURE. ALL AGENCIES AGREED THAT FNMA MUST BE WIND DOWN. TOO BIG TO FAIL ISSUE HERE. 80% OF MRTGAGE IN THE US IS TOO BIG TOO FAIL PROBLEM. JPM IS NOT EVEN CLOSE TO FNMA MORTGAGE SIZE AND THERE IS ALREADY A TALK OF TOO BIG TO FAIL THEORY THAT IT MUST BE BROKEN DOWN IN SIZE. JPM??? JMO
and what happens when they dont make profit. Uncle Sam has to bail them out again! NOOOOOOOOOOWAYYYYYYYYYYJOSEEEEEEEEE!!!jmo
FNMA is bankrupt. what do you mean. It is taken over by the FHFA. They have no CEO or company. They are done. jmojmojmo. like that huh!
perhaps not him but no government wants to guarantee any mortgages in the future. THAT IS FACT!!!! jmo
its called quantum trading! seconds to minute trading based on buy and sell volumes!!!has nothing to do with the fate of fannie mae. jmo
you mean the hedge funds companies are buying. Regular people for the most part are already priced out and do not have the down payment to buy a home. I guess you dont know that it is very difficult to get a loan approved today!!!jmo
LAST CHANCE FOR A BOUNCE EARLY MORNING!!!blue jmo
JUST WANTED TO SEE HOW HIGH IS FNMA's POSITIVE NETWORTH. WILL IT BE BIG ENUF TO CHANGE SENTIMENT AND ATTITUDE!!! jmo
LAST CHANCE TO GET IN BEFORE THE BOOM BOOM TOM. AT LEAST 20% UP CALLED BY BLUE!!!! jmo
Good move by cashing out! GET OUT BEFORE THE STORM COMES!!!jmo
where is the article????jmo
show me the dates that fnma will announce anything tom. blue. jmo
MAYBE as a PRIVATE company. It will have a different name and sharholder structure which does not involve current shareholders of FNMA. jmo
MAJORITY WANTS FNMA PRIVATIZED! BAD NEWS FOR CURRENT SHAREHOLDER!!! SHAREHOLDER WILL BE WIPEDOUT!!! jmo
wa ever. no specific date was given. jmo
what I got is buy at the open, and then sell as it goes higher. easy 10-15% everyday. cant hold this. its one of the best for trading daily. This is definitely a QUANTUM TRADE PRODUCT NOW.
NOT AN INVESTMENT! jmo
should be worth .30, then .20, then .10, then eventually zero.
jmo
At the moment until they are slowly wind down. FHFA is winding them down in the tune of 10-20 billion per year. Slowly but surely. For the meantime, I'll celebrate with you when my bid is executed. jmo
You say that because you never owned fannie bonds and or preferreds. They promised to pay 7% to my clients and they stopped paying 5 years ago. My customers were retired and they needed that income. Guess what they not only lost income, they also lost their principal. Dont suggest anything if you dont know the whole story about fannie and freddie. Fannie and Freddie acted irresponsibly with their profits in the past. Instead of putting them on reserves in hard times they were lavishly spending it carelessly. Why not, Uncle sam guarantees those loans. Well guess what, Uncle Sam is not guaranteeing those bonds and preferreds they issued. NOW WHAT! jmo
Thanks for bringing it up. FNMA is a great trading stock. I give you that! Looks to continue next week. GL. jmo
Good luck everyone. BIG week for the longs. Hope you guys make plenty of money before it goes to zero. jmo
not fair! that is one year prediction. haha. jmo
OK you nailed me. I'll stop telling the truth. The US government actually made a lot of money rescuing the banks. All the tarp was paid back and some. Fannie and Freddie is a different story, but they are making money and able to pay now during this rebound. The question is, what id we have another bust in the housing market which occurs every decade. I am expecting another mini bubble in the real estate market because the hedge funds were the ones who are buying up all the inventories in the last year or so. They paid cash bec. they buy in bulk. These are now being rented or in the rental market. Once the hedge fund thinks they have max their profit they will sell these props and the mini bubble starts. jmo.
America's war is the biggest contributor to our national debt. And we didn't even get cheap oil. What a shame. Only the republican cronie companies made money in the war. Like cheneys haliburton and bush oil empire. Its a shame. jmo
They'll figure another way. But fannie and freddie is done! jmo
NO! MANY countries do not have a FNMA. They have private and public investors in their mortgage industry. jmo.
Thats why AMERICA dont have AAA status no more. FNMA is DEAD. US GOV. DO NOT WANT TO GUARANTEE FNMA NO MORE!!!!!!!!jmo
U mean DEBT.
FNMA is worth ZERO. jmo
Hey! You called this yesterday!. Down day. Plus I like to inform people that FNMA has no future. Our government already realized that. jmo
SORRY! Party is over! Little people gets whacked..... AGAIN!!!! GLTY. I hate to see people loss money. jmo
Lots of negative article will come out over the weekend and this will TANK next week. jmo
Everyone makes money when the house go up in price that is given. The bank makes money with fees ofr the mortgage loans.
The builder makes money for selling the house.
The Real estate agents make money on commission.
The Title company makes money for smooth transactions.
etc. etc...
How Fannie and Freddie makes their money is by interest rate spreads. Here how it works: Banks can only loan as much as 10X their deposits. If there is a million in the bank at the EOD, They can loan up to 10 Million. (If you want to own a business, BANKS is a real good one). Lets say the bank made 50 home loans worth 10 million dollars, (meaning they maxed it out) they made money on origination fees and points for interest buy downs. Since they maxed out, the banks cannot loan anymore unless they get more deposits from their customers. So what does the bank do... Sell the loans to Fannie and or Freddie. This way the bank free up their funds (10 Million dollar) and they can repeat the same process over and over again. The banks can continue to service those loans for a small fee, usually about 25 basis points. Fannie gets all the interest on the mortgage originated by the bank, say 4.25%. Where did Fannie get the 10 Million to pay the bank? They also borrowed that from the US Government, US Treasury. This is how fannie makes their money. US Treasury loans them real cheap say 2%. The spread is 2% profit to fannie. Now Fannie can also borrow directly from the public by issuing BONDS. Since Fannie is back by the US government and have a Triple AAA rating, ( meaning LOW RISK ) they can pay lower interest to investors. Fannie can still make money from the spread between the traditional mortgage rate and the low rates they pay the fannie bond holders due to safety.
Now let me pause here because that was the past.
TODAY, The US Treasury is charging FNMA 10% interest on the 170 Billion dollar rescue loan to continue operation. The feds keep printing money to keep the rates artificially low.
Since Fannie and Freddie owns 80% of the entire mortgage loans in the US, the losses is incredible.
I really dont think people here understand how huge the losses are. Fannie if allowed to continue operation will no longer have the priviledge of borrowing money cheap because of their credit rating. so how are they going to operate without the US government support. It is impossible. But without Fannie and Freddie, home ownership will definitely decline. 3% down and zero down will be the thing of the past. No investors will buy fannie and freddie 3% or zero down. It allows owners to walk away too easy.
Did you know that Real Estate agents are recommending homeowners to walkaway on their upside down property because a new law allows them to buy again in 1 year for shortsales and 2 years for foreclosure. These kinds of stupid laws that gets us in trouble all the time.
Im done. ALL MY OPINION only.
GLTA.
excellent video. Must see for everybody. little education will help. jmo
You cant have a system that only works in boom time. An investment must have risk/reward ration. This system was flawed and the government cannot be in the guaranteeing business no more. end of fnma. Opportunity to the mortgage insurance companies. You should be investing there instead of this dead horse. jmo
Agreed. Obama and Blaire are just two of the almost unanimous bipartisan who wants FNMA and FRE shut down. Investors who wants their money back in FNMA has no chance of surviving this. My brother in law owns FNMA at 60's. Its never getting back there. To get there, they have to redeem all those hundreds of billions of dollars in bonds and junior preferreds. Not to mention the senior pref. from the treasury in the tune of 170 billion dollars. Just too deep of a hole. sorry. jmo
why is everybody all worked up with a simple JMO. Is IMO better. lol.
Fre and fnm is an embarassment around the world. sovereign funds owned this as a safe and triple AAA investment and blew up. Turns out that...the guarantee from US government is NOT a guarantee after all. This is why the world has a credit rating to the US of a single A now. Singapore, australia and canada has a better rating than us. shame. jmo
BLAH BLAH BLAH! ITS VERY SIMPLE! There will be no more FNMA and FRE bec. UNCLE SAM will not be humiliated AGAIN for guaranteeing FNMA AND FRE who lost hundreds of billions of dollars. These TRIPLE AAA investments bonds and preferreds were sold to many retirements accounts and sovereign funds all over the world. Many countries who owns this investments are not getting anything from UNCLE SAM but yet they were guaranteed by them. Cant you see, FNMA and FRE is a BIG HUMILIATION TO THE STRONGEST AND RICHEST NATION (USA) AROUND THE WORLD. You wanna know what the world thinks of USA in the credit term.....How about a single A.jmo
for who and to whom is the question. Common shareholders will not make anything. jmo