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Oh Freddie, How I Love You So...

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oh dear, poor freddie. some claim they can see the end of the tunnel but i think someone built a house over the end of it! check out the $3.97/share loss versus the expected $2.34/shares - ouch!

yahoo finnance link article follows below:

Freddie Mac Posts $2.5B Loss in 4Q

Thursday February 28, 7:44 am ET

Freddie Mac Posts Wider Loss of $2.5B in 4th-Qtr As Loan Defaults Mounted

WASHINGTON (AP) -- Freddie Mac says its loss widened to $2.5 billion in the fourth quarter as defaults mounted on home mortgages.

Freddie Mac is the No. 2 U.S. buyer and backer of home loans. The fourth-quarter loss compares with a loss of $401 million in the last three months of 2006.

Freddie Mac reported Thursday the latest loss was equivalent to $3.97 a share. It lost 73 cents a share a year earlier. Thomson Financial says Wall Street analysts had expected the company to lose $2.34 a share in the latest period.

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some claim they can see the end of the tunnel

There seem to be a lot of people looking down tunnels not realizing tunnels don't tend to be rifled. The light they are looking for is more like a flash and you can't move for triggers :lol:

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They can see light at the end of the tunnel all right. It's Bernanke with his inflation flamethrower.

Who was it who said "Beware the light at the end of the tunnel ... it's that of an oncoming express train."

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i watched bernanke yesterday being questioned on Capitol Hill by senators. i think he does it every week. 2 things struck me.

1. one senator needed ben to explain why after the fed cut rates did this not feed into mortgage rates - good use of ben's time!

2. poor old ben looked liked he wanted to tell the truth he was really struggling to put the bad news into language which wasnt frightful. imagine if he could actually say what he thought.

the banks/monolines must tell him what they are afraid of. that they cannot say for sure they can fund their existing assets if things carry on getting worse.

so he has to sit there and say 'i think things will get better'. 'there are some positive signs'. oh and by the way i think citigroup is trading illegally - ie bankrupt if assets were actually priced mtm (note the amazing saving of the monoline ratings).

ubs had to ask for $12bn just to keep trading.

the poor man should be able to say what he likes. hes not a politician. but maybe he is doing the right thing????

freddie and fannie were caught out a few years ago for false accounting. maybe they should just right off mortgages as soon as they buy them and save us all the time!

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I'm feeling stupid. Can someone please explain why FRE and FNM (Freddie and Fanny) are up over 4pct today. Thanks.

thats a fair question but who knows what when will mean you can never second guess a share on any day. the 2 yr chart is a more pleasing one.

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  • 297 Brexit, House prices and Summer 2020

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