Freddie mac is, at this point only down 3% on the day, having something of a rally after being down as much as 19% on the day, but Fannie Mae, the Federal National Mortgage Association, is down 23% at this point in the proceedings, here at 2:30pm. well, the numbers are not precise, in large part because these two are fluctuating wildly. There is a report from Bloomberg.com saying that they had both lost 1/4 of their value. I am hoping they were talking in broader terms, as in the last year. No wait that can’t be it. Fannie Mae a year ago was at 66.45 if i remember correctly, and now the days low has it at 10.935, and the number now is at 11.2 .
Oof. Let’s see, what else. Oh yeah, the Dow is down over 200 points and crude oil is back over $144 a barrel after losing $9 in two days earlier this week and having a session low of about $135. JOY!
The good news here is that there is not yet any need of a Government bailout of either Fannie Mae of Freddie mac. But the thought that there is now public speculation over the Fate of these two institutions, who between them either own or guarantee $6,000,000,000,000 in Mortgages in the U.S., Fully 50% of the market. an extensive quote from a Bloomberg.com story By Caroline Salas and Dawn Kopecki:
A government takeover of one or both companies is among several options that have been considered, Joshua Rosner, an analyst at Graham Fisher & Co., said after meetings with administration officials. U.S. Treasury Secretary Henry Paulson said today that federal regulators are backing Fannie Mae and Freddie Mac in “their current form.”
“The administration is considering all options in its contingency planning,” Rosner said. “That doesn’t mean to say that we’re at an inflection point where any decision is required immediately.”
The U.S. is reluctant to step in before Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac, which own or guarantee about half the $12 trillion in home loans outstanding, exhaust their options for raising capital, according to Rosner and U.S. Representative Spencer Bachus of Alabama.
Update: Oil just hit $145 again. Dammit.
Ya know, I want everyone out there to know that I am rooting like hell for One major comeback for this economy and soon. I think we have the resources to get ourselves out of these financial doldrums. Things will get better. I am just hoping that it doesn’t take until there is a new Administration in the White House, regardless of who it is, to turn things around.
Oh, and to Phil Gramm, this isn’t a Mental recession, it’s an economic downturn. You are supposedly an economist, you should be able to figure it out, ya fat grumpy old douche bag.
That’s it for the moment. More joy later on tonight.
Today’s Nugget, Via Wikiquote: Capitalism is based on self-interest and self-esteem; it holds integrity and trustworthiness as cardinal virtues and makes them pay off in the marketplace, thus demanding that men survive by means of virtue, not vices. It is this superlatively moral system that the welfare statists propose to improve upon by means of preventative law, snooping bureaucrats, and the chronic goad of fear. Alan Greenspan