Freddie and Fannie

Robert · #1 (**permalink**) 07-11-2008, 02:10 PM

Any side bets on their survival?

Cheers, Robert

rachael24 · #2 (**permalink**) 07-11-2008, 04:03 PM

What is Freddie and Fannie exactly?

GarySpicuzza · #3 (**permalink**) 07-13-2008, 04:29 AM

Robert, of course they will survive.

The Gubment will simply print more money.

That's why it's called "fiat" money.....

Link.

Quote:

Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.

brian · #4 (**permalink**) 07-13-2008, 12:46 PM

I doubt we'll see Freddie and Fannie go bust - but god forbid what happens to the other mortgage companies.

www.BalanceTransfer.cc · #5 (**permalink**) 08-23-2008, 08:54 AM

Freddie and Fannie can't go belly up. The entire U.S. mortgage market would collapse if they did. That's why the government can't let them fail. If their stock price goes low enough, a bailout is certain.

ElliotClark · #6 (**permalink**) 02-19-2009, 03:37 PM

Quote:

Originally Posted by Robert

Any side bets on their survival?

Cheers, Robert

none I think

jimmy · #7 (**permalink**) 04-01-2009, 09:31 PM

I agree, according to Reuters, “Fannie Mae and rival Freddie Mac are seen as crucial tools to the Obama administration's housing rescue plan to help lower mortgage costs and prevent foreclosures for as many as nine million homeowners.” In which case, President Obama has a problem, because Fannie Mae just reported a $58 billion loss in 2008, and a spokesman admits:“We expect the market conditions that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009, which is likely to cause further reductions in our net worth.”

Mike2000 · #8 (**permalink**) 04-24-2009, 06:48 PM

I found the perfect site to track earnings results. Question is, will the bank's "earnings" really hold? I bet they fall to losses by the 3rd QT.