Replies to post #620504 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

THHHHHWWWWPPP. I clearly stated the BK comment came from Calabria.

Calabria says shit all the time that never seems to pan out. This saga will only end in receivership if another Crisis Event drives the failure bus. Yes, that could happen. Is it likely? Nope, because the economy would collapse and the Federal Debt become a crushing financial anchor that would relegate the USA to Venezuela-like economic oblivion.

[5bagger]

Kthomp - way off base on just first two statements...


"It's not me saying that FnF are essentially in bankruptcy, it's Calabria. I even provided proof. You might want to go off what he actually says rather than what you think he should say."

CALABRIA never said, could say, did say, will say "FnF aret essentially in bankruptcy" - in fact, just the opposite, he said they got screwed. He did say, as fact, that he would have liked to have seen bankruptcy in 2008, but I'd like to see Kate Upton naked, but that ain't happening and neither could have or did happen the 2008 BK.

Why? Because the govt. used FnF as tools for recovery, make boatloads of money and couldn't have b/c of the implied guarantee and fact that they need the MBS market.

Sheesh.

"If you want to disagree with Calabria go right ahead. But he is the one calling the shots. If he says this is going to be resolved like a bankruptcy then that's what's going to happen, period."

CALABRIA is NOT the one calling the shots. In a recent interview, he spelled that out. Treasury is the one calling the shots on raising the capital. And, the capital rule was his opinion (which we all have) on the number. He's getting beaten up on his number and Mnuchin and Moelis, etc. have other numbers.

Let's see the shots that Mnuchin moneymen call and not the govt. wonk Calabria.

[skeptic7]

Receivership just as possible as any other outcome, and frighteningly, it's the path of least resistance. Calabria sounds like he's just greasing the skids, and he'll ne rewarded handsomely by Mnuchin. GSE's are done, they just haven't buried the corpse.
#DeadManWalking

[bcde]

"It's not me saying that FnF are essentially in bankruptcy, it's Calabria. I even provided proof. You might want to go off what he actually says rather than what you think he should say."

Companies go in to bankruptcy not because of capital reserves but because of bad business, no cash flows and no profits.

FnF are generating about $15 to $20B profit every year and projected to be profitable for foreseeble future.

Only people out of their mind will talk about bankruptcy.