Freddie Mac wants more gob'mt funds.

[TSD]

http://finance.yahoo.com/news/Freddie-Mac-reports-Q3-loss-apf-2666638736.html?x=0







come on, its just 6 billion this time.

 

[supraman]

They need to go **** themselves, that's what they need.

 

[Tater]

They have a hell of a lot of balls to ask for more $ at this point.

 

[jakobeast]

Well, they could stop using outsourced companies and let me re key their properties. Seriously. Those outsourced companies suck and don't do their job

 

[BigPete]

This news was just a bit upsetting.



I don't think anything will change until congress and the president get radical in their approach on the housing issue.



It would appear that the banks and mortgage lenders (really one in the same now - thank Stegal/Glass repeal for that) and the government are taking the "the ship will right itself over time" approach.



Meanwhile I want to move to a town in MO for commuting reasons and my current town has HUNDREDS of similar houses for sale, so any chance of getting mine sold is out the fucking window.



I am very glad that single family home prices are coming back down to reality, but not at the expense of everyone being unable to buy a new house when most of them are contingent on selling their old one.

 

[TSD]

So whats the negative if Freddie takes a dump? Seriously Let the government dump freddie and just let the government collect on their remaining mortgages.

 

[jaxhawksfan]

Freddie can suck a dick!

 

[MassHavoc]

So whats the negative if Freddie takes a dump? Seriously Let the government dump freddie and just let the government collect on their remaining mortgages.

That was actually going to be my question. In reality, what happens if they don't bail them out? 6 Billion for such a big company to be down doesn't seem like a big deal to them actually, can't they ride the loss for a while? And so what if they do go bankrupt? What does that mean exactly? How does it effect things?

 

[TSD]

This news was just a bit upsetting.



I don't think anything will change until congress and the president get radical in their approach on the housing issue.



It would appear that the banks and mortgage lenders (really one in the same now - thank Stegal/Glass repeal for that) and the government are taking the "the ship will right itself over time" approach.



Meanwhile I want to move to a town in MO for commuting reasons and my current town has HUNDREDS of similar houses for sale, so any chance of getting mine sold is out the fucking window.



I am very glad that single family home prices are coming back down to reality, but not at the expense of everyone being unable to buy a new house when most of them are contingent on selling their old one.

A buddy of mine who is a corporate auditor is in the same situation. He lives in Bolingbrook and works downtown (he drives to the train station in downers grove every day to hop the train, thats got to be a pain in the ass) He has two little kids now, and is basically one of those, out the door at the crack of dawn, comes home just in time to go to bed types. and wants to move to the city so he can get a decent amount of free time and not spend 4 hours a day commuting. Cant sell his house to save his life. It is really a first time home buyers market out there. Another buddy of mine bought his first house a year ago, He got a house for 150,000 in plainfield that was originally purchased for 250,000 by the sellers in 2001.

 

[TSD]

That was actually going to be my question. In reality, what happens if they don't bail them out? 6 Billion for such a big company to be down doesn't seem like a big deal to them actually, can't they ride the loss for a while? And so what if they do go bankrupt? What does that mean exactly? How does it effect things?

From my understanding other than the "intangible" effects on the economy, i.e. no real reason the whole economy should go south over this but could just because of speculation.



The only real physical effect would be shareholders and investors losing their investment and employees of said company are out of a job.

 

[jakobeast]

If Freddie were to disappear, there will be no loans. Fannie and Freddie are the only ones buying on the secondary market. If one or both suddenly disappear, no new money will be available for loans, be it home, auto, anything.



Because they are buying, it is freeing up money for banks to make loans, albeit at a snails pace.

 

[MassHavoc]

If Freddie were to disappear, there will be no loans. Fannie and Freddie are the only ones buying on the secondary market. If one or both suddenly disappear, no new money will be available for loans, be it home, auto, anything.



Because they are buying, it is freeing up money for banks to make loans, albeit at a snails pace.

Yeah, this was more toward my question. What happens to all the loans they currently own, and what happens if they aren't there to buy stuff.



I'm ok with the above actually. I do think that it will right itself as you are never going to stop the flow of money, and I think other avenues will be found and other players may be forced into the light. Whether or not they will be better or worse than the current options is what is scaring people. I'm a firm believer in things always have to get worse before they can get better, and if that means tearing down stuff that has grown out of control and inefficient, so be it. Some times starting over is the best option. Can't always polish the turd, sometimes you get shit on.

 

[Tater]

Maybe they should just go directly to the Chinese for a bailout.

You know, cut out the middleman (all of us).

 

[TSD]

If Freddie were to disappear, there will be no loans. Fannie and Freddie are the only ones buying on the secondary market. If one or both suddenly disappear, no new money will be available for loans, be it home, auto, anything.



Because they are buying, it is freeing up money for banks to make loans, albeit at a snails pace.

I guess that would basically obliterate the auto and housing market at least temporarily, but coming out of it, could be much cheaper auto/housing costs making banks less hesitant to make loans as such.



As I think that was part of the problem housing costs simply skyrocketed. My parents house in shorewood they bought for 110k in 1996, they sold for almost 350k in 2004. and to my recollection there couldnt have been that much inflation as if I recall correctly minimum wage in 2007 was maybe 50 cents more an hour than my first job I got in 97.

 

[supraman]

If Freddie were to disappear, there will be no loans. Fannie and Freddie are the only ones buying on the secondary market. If one or both suddenly disappear, no new money will be available for loans, be it home, auto, anything.



Because they are buying, it is freeing up money for banks to make loans, albeit at a snails pace.

I guess that would basically obliterate the auto and housing market at least temporarily, but coming out of it, could be much cheaper auto/housing costs making banks less hesitant to make loans as such.



As I think that was part of the problem housing costs simply skyrocketed. My parents house in shorewood they bought for 110k in 1996, they sold for almost 350k in 2004.

I have to admit when we were on the brink of disaster. I wanted the entire economy to fall apart. I was hoping it would pull a phoenix and rise from the ashes stronger and better.



I do think that something has to give, the status quo of how things are done doesn't work, that is terribly apparent. So maybe we need to have the auto and home markets take a complete shit to become the catalyst for change.

 

[TSD]

I have to admit when we were on the brink of disaster. I wanted the entire economy to fall apart. I was hoping it would pull a phoenix and rise from the ashes stronger and better.



I do think that something has to give, the status quo of how things are done doesn't work, that is terribly apparent. So maybe we need to have the auto and home markets take a complete shit to become the catalyst for change.

I mean its true. Things like that in software development happen all the time. Sometimes you just have to tear that motherfucker down. The first application I worked on after about 6 months working on it, (it was pre-existing) it was such a mess (it "worked") but it was ridiculous to trouble shoot because it was worked on by like 50 different people over the course of a few years. So we just shit canned it and rewrote it, it basically did the same thing, but the code was more structured elegant and efficient.

 

[jakobeast]

I wonder if it is better..the devil we know as it were. Who knows what would happen if loans disappeared. But what kind of anarchy would that bring, and would that make us weaker then we already are and make it easy for some other nation to overrun us?

 

[supraman]

I wonder if it is better..the devil we know as it were. Who knows what would happen if loans disappeared. But what kind of anarchy would that bring, and would that make us weaker then we already are and make it easy for some other nation to overrun us?

We are already at a pretty low point for modern times. So I dont know how much worse it can get. I really see America at a crossroads right now.

 

[LordKOTL]

Let 'em fail.

 

[BigPete]

If there weren't billions of dollars involved I would just say, zero out the fucking mortgages. But, this is math here and 1 minus 1 minus 1 again does not equal 0 and it certainly does not equal 2, which is what this country is so hell bent on preserving: growth.



In my opinion, any mortgage holder should be let off the hook for their remaining interest payments, if they meet certain criteria. Such as, have they paid a certain amount or percentage in their existing loan. For instance, I figure I have paid about $70,000 in interest in the last 5 years (which is the age of the mortgage) and about $10,000 in principal so far. This is on a $200,000 loan. Hasn't Wells Fargo made enough of a profit for loaning me that $200,000 yet? Can't I just start paying off the principle now?



I know the answers, but I don't like them, that is why I ask them above. The lender is making plenty of money for loaning me that cash to 'buy' the house. When is enough enough? Just think what I could do to stimulate the economy if I had more cash every month and didn't have to keep giving so much of my paycheck to these loan shark, extortionist mofos.