Comments on: Poole: GSE Bailout is "Stopgap", Expects Up to $300 Billion of Losses http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html Sun, 22 Nov 2009 13:46:25 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14531 Anonymous Mon, 08 Sep 2008 14:41:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14531 This is not about breaking China, but saving China - as a prop to the failing US economy. They invest significant amounts of capital in FanFred. When China recently cut its purchase by roughly 25%, Paulson had no choice but to guarantee (at least symbolically) those investments. He got the message. This is not about breaking China, but saving China – as a prop to the failing US economy. They invest significant amounts of capital in FanFred. When China recently cut its purchase by roughly 25%, Paulson had no choice but to guarantee (at least symbolically) those investments. He got the message.

]]> By: jm http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14529 jm Mon, 08 Sep 2008 14:24:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14529 $300 billion? A small price to pay to keep the Chinese happy.<br/><br/>Especially since they're the ones we'll borrow it from. $300 billion? A small price to pay to keep the Chinese happy.

Especially since they’re the ones we’ll borrow it from.

]]> By: jeflin http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14526 jeflin Mon, 08 Sep 2008 13:43:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14526 Between Fannie and Freddie, they own about 5 trillion dollars of mortgage assets.<br/><br/>In the words of Paulson, that this crisis ranks next to the Great Depression, 300 billion is small change. <br/><br/>Assuming a conservative 20% write down, the losses could easily exceed 1 trillion dollars. <br/><br/>http://jeflin.net Between Fannie and Freddie, they own about 5 trillion dollars of mortgage assets.

In the words of Paulson, that this crisis ranks next to the Great Depression, 300 billion is small change.

Assuming a conservative 20% write down, the losses could easily exceed 1 trillion dollars.

http://jeflin.net

]]> By: Ben Bittrolff http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14524 Ben Bittrolff Mon, 08 Sep 2008 13:16:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14524 Heads up. This 'bailout' just triggered $1.47 TRILLION in Credit Default Swaps on Fannie and Freddie.<br/><br/>The clowns that wrote these CDSs are probably dead. No way this is spread out enough over the entire system to avoid at least some implosions...<br/><br/><a HREF="http://benbittrolff.blogspot.com/2008/09/fannie-and-freddie-cdss-147-trillion.html" REL="nofollow">Fannie and Freddie: CDSs, $1.47 Trillion Triggered</a> Heads up. This ‘bailout’ just triggered $1.47 TRILLION in Credit Default Swaps on Fannie and Freddie.

The clowns that wrote these CDSs are probably dead. No way this is spread out enough over the entire system to avoid at least some implosions…

Fannie and Freddie: CDSs, $1.47 Trillion Triggered

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14522 Anonymous Mon, 08 Sep 2008 12:56:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14522 Look to TSYS rather than stocks<br/><br/>Paulson put the grenade in Tys front pocket with the "bazooka" requisition.<br/><br/>He reached around and pulled the pin this weekend.<br/><br/>The endgame is now.<br/><br/>The risk remains. It doesnt magically disappear. It sits in the bond market now. The last and worst place it can go. Look to TSYS rather than stocks

Paulson put the grenade in Tys front pocket with the “bazooka” requisition.

He reached around and pulled the pin this weekend.

The endgame is now.

The risk remains. It doesnt magically disappear. It sits in the bond market now. The last and worst place it can go.

]]> By: Dean http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14520 Dean Mon, 08 Sep 2008 12:50:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14520 A "hairy Paulson" that is. A “hairy Paulson” that is.

]]> By: Richmond Rambler http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14518 Richmond Rambler Mon, 08 Sep 2008 12:36:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14518 "You always, I notice, feel the same when you are under heavy fire--not so much afraid of being hit as afraid because you don't know _where_ you will be hit. You are wondering all the while just where the bullet will nip you, and it gives your whole body a most unpleasant sensitiveness." --Orwell, Homage to Catalonia<br/><br/>Unpleasant sensitiveness all weekend. “You always, I notice, feel the same when you are under heavy fire–not so much afraid of being hit as afraid because you don’t know _where_ you will be hit. You are wondering all the while just where the bullet will nip you, and it gives your whole body a most unpleasant sensitiveness.” –Orwell, Homage to Catalonia

Unpleasant sensitiveness all weekend.

]]> By: darkoakley http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14516 darkoakley Mon, 08 Sep 2008 11:40:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14516 Marketwatch 5:44 AM EST<br/>"GSE plan limits risk for E.U. lenders, but write-backs unlikely"<br/><br/>a few notable quotes:<br/><br/>"Another analyst, who didn't want to be named, said the deal also provides some relief for banks that hold bonds in other major financial groups. There had been a lingering fear that bond-holders could have to take further massive write-downs if a major bank went bust, but the Fannie and Freddie deal confirms any significant bank that might go bankrupt can rely on the state, he said."<br/><br/>"Merrill argued that any solution to the credit crisis needs to take the approach that it is a systemic problem. That could be through the creation of an entity designed to facilitate consolidation, such as the Resolution Trust Co. in the 1980s crisis." Marketwatch 5:44 AM EST
“GSE plan limits risk for E.U. lenders, but write-backs unlikely”

a few notable quotes:

“Another analyst, who didn’t want to be named, said the deal also provides some relief for banks that hold bonds in other major financial groups. There had been a lingering fear that bond-holders could have to take further massive write-downs if a major bank went bust, but the Fannie and Freddie deal confirms any significant bank that might go bankrupt can rely on the state, he said.”

“Merrill argued that any solution to the credit crisis needs to take the approach that it is a systemic problem. That could be through the creation of an entity designed to facilitate consolidation, such as the Resolution Trust Co. in the 1980s crisis.”

]]> By: dh http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up.html#comment-14501 dh Mon, 08 Sep 2008 05:42:00 +0000 http://www.nakedcapitalism.com/2008/09/poole-gse-bailout-is-stopgap-expects-up-to-300-billion-of-losses/#comment-14501 Insanity continues; goose the market in Japan and then halt trading for Fannie.. Free markets at work; Adam Smith would love this!!<br/><br/>http://www.nyse.com/press/1220610346765.html<br/><br/>The New York Stock Exchange (NYSE) announced that the common and related preferred stock of Fannie Mae (ticker symbol FNM) and Freddie Mac (ticker symbol FRE) will be halted news dissemination during the pre-market and available to all markets for trading at 9:30am (EST) on the morning of Monday, Sept. 8, 2008 due to U.S. federal regulators action related to Fannie Mae and Freddie Mac. Insanity continues; goose the market in Japan and then halt trading for Fannie.. Free markets at work; Adam Smith would love this!!

http://www.nyse.com/press/1220610346765.html

The New York Stock Exchange (NYSE) announced that the common and related preferred stock of Fannie Mae (ticker symbol FNM) and Freddie Mac (ticker symbol FRE) will be halted news dissemination during the pre-market and available to all markets for trading at 9:30am (EST) on the morning of Monday, Sept. 8, 2008 due to U.S. federal regulators action related to Fannie Mae and Freddie Mac.

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