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Fannie Mae and Freddie Mac, they sound like a pair of drunks who hang out in central park, drowning their sorrows in public funds. Perhaps a name change would help their PR image. Something a bit more honest. How about

Bucket-Fannie Mae and Freddie Dross.

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Freddie and Fannie won't make it.

I thought I read something recently about the US government looking at ways to try and break them up/wind them down? It could get messy.

Edited by MOP

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Freddie and Fannie won't make it.

I thought I read something recently about the US government looking at ways to try and break them up/wind them down? It could get messy.

Why don't they try and do the same to Goldman Sachs?!

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On average we are seeing banks recover about 35% of the mortgage value after foreclosing on properties and paying off the attorneys, asset managers, real estate agents, contractors and consultants.

and there we have it folks.

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and there we have it folks.

I wonder what mark-to-myth % was reported in the latest set of accounts. I bet they don't admit 35%.

Mish has some recent articles on the huge number of repo houses that are not coming to the open market. The banks are drip feeding them out and still taking a massive hit. No wonder they can't admit to the full losses, Japanese zombie policy in progress again.

I'm starting to understand why government go for this zombie policy. Otherwise, the true value of the banks gets recognised and they can be bought up by foreigners for pennies and you have lost your finance industry which provides huge tax revenue for mugging your population. That's why the US told Japan to do it but won't do it themselves.

VMR.

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I wonder what mark-to-myth % was reported in the latest set of accounts. I bet they don't admit 35%.

Mish has some recent articles on the huge number of repo houses that are not coming to the open market. The banks are drip feeding them out and still taking a massive hit. No wonder they can't admit to the full losses, Japanese zombie policy in progress again.

I'm starting to understand why government go for this zombie policy. Otherwise, the true value of the banks gets recognised and they can be bought up by foreigners for pennies and you have lost your finance industry which provides huge tax revenue for mugging your population. That's why the US told Japan to do it but won't do it themselves.

VMR.

Any links to save searching?

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http://globaleconomicanalysis.blogspot.com...res-dam-is.html

Brace for a Wave of Foreclosures, the Dam is About to Break

A summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic shows that Nearly One-Third Of All Mortgages Are Underwater.

• More than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, 2009 according to newly released data from First American CoreLogic. As of June 2009, there were an additional 2.5 million mortgaged properties that were approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage nationwide.

• The aggregate property value for loans in a negative equity position was $3.4 trillion, which represents the total property value at risk of default. In California, the aggregate value of homes that are in negative equity was $969 billion, followed by Florida ($432 billion), New Jersey ($146 billion), Illinois ($146 billion) and Arizona ($140 billion). Los Angeles had over $310 billion in aggregate property value in a negative equity position, followed by New York ($183 billion), Miami ($152 billion), Washington, DC ($149 billion) and Chicago ($134 billion).

• The distribution of negative equity is heavily skewed to a small number of states as three states account for roughly half of all mortgage borrowers in a negative equity position. Nevada (66 percent) had the highest percentage with nearly twoâ€thirds of mortgage borrowers in a negative equity position. In Arizona (51 percent) and Florida (49 percent), half of all mortgage borrowers were in a negative equity position. Michigan (48 percent) and California (42 percent) round out the top five states.

Scrolled down a bit further and found this one.

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http://globaleconomicanalysis.blogspot.com...res-dam-is.html

Scrolled down a bit further and found this one.

even Mish is coining the phrase now - it started in Britian

Foreclosure Wave Is About To Hit

The biggest factor in foreclosures and walk-aways is whether or not someone is underwater. If someone with equity always has a chance to sell. The second biggest factor is "skin in the game". Those who put down 20% are far less likely to abandon their properties than someone who put down 10% or less.

In light of the above, and given the preponderance of "liar loans" and low down payments in the problem states, those thinking clearly might be expecting to see a giant wave of foreclosures striking shore right about now. And they would be correct.

Edited by lowrentyieldmakessense(honest!)

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June 2009 Update - As many of you know I had a heart attack and bypass surgery at the end of May

Why is it that every whistleblower feels they can only say what they need to say when they are potentially close to death?

Establishments around the world must have such a tight grip on people and their psyche that there is no other way. Like Eddie George publishing "Bank of England takes property blame" just before his death from terminal cancer.

What a $hit world we live in.

Edited for spelling of Eddie.

Edited by AvidFan

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http://globaleconomicanalysis.blogspot.com...res-dam-is.html

What was interesting to me here (if the stats are true) was that 15 million defaulting mortgages represent 32% of all mortgages. That implies only 50 million propoerties are mortgaged, yet the US has a population of 350 million. Surely there must be close to 140 million properties so total defaults are only 10% of all properties?

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What was interesting to me here (if the stats are true) was that 15 million defaulting mortgages represent 32% of all mortgages. That implies only 50 million propoerties are mortgaged, yet the US has a population of 350 million. Surely there must be close to 140 million properties so total defaults are only 10% of all properties?

Not sure. Denninger regularly cites a large number of paid off residences in the US to make the point that unsustainable debt is concentrated in poisonous doses in certain areas. The result is surprising - something like 40% of the 100 million households in the US have no mortgage.

I could have that completely wrong :P

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