Amidst speculation that Freddie and its big brother Fannie are facing insolvency, U.S. Treasury Secretary Paulson said the primary focus was supporting Fannie and Freddie "in their current form as they carry out their important mission."
Well, the fact of the matter is that “carrying out their mission” is what got them into this mess to begin with.
Paulson delivered the subtle message that has been interpreted by most that he won’t bail the GSEs out. But if the GSEs aren’t able to raise sufficient capital, it’s going to initiate a printing frenzy by Bernanke, with or without a conservatorship.
Before we consider exactly what Paulson’s statement means, have a look at the following excerpts I put into print in 2006.
"Because Fannie and Freddie lack sufficient government oversight, they haven’t maintained adequate capital reserves needed to safeguard the security of payments to investors. And due to exemption from the SEC Act of 1933, they aren’t required to reveal their financial position. In fact, they’re the only publicly traded companies in the Fortune 500 exempt from routine SEC disclosures required for adequate transparency and investor accountability. As a result, many feel the GSEs are exposing themselves to excessive risk."
"Recent investigations have forced Fannie to restate earnings to the tune of nearly $11 billion from 1998 to mid-2004. The SEC has fined them $400 million and the management is now being investigated by the Department of Justice. Thus far, Fannie Mae was found to have misrepresented its risk position, acted irresponsibly, and manipulated earnings so company executives would receive huge bonuses.”
“The original intended purpose of the GSEs was to focus on affordable housing for the private sector. Yet, dozens of studies have shown that Freddie and Fannie have not been dedicating their resources towards this mission, but have been supplying funds to the overall market. Therefore, the GSEs have been a significant stimulus for the rapid growth of sub-prime loan market that has contributed to the enormous risks we see within the real estate bubble."
Source: America’s Financial Apocalypse: How to Profit from the Next Great Depression
Is this the “important mission” of the GSEs Paulson was referring to - Fraud, mismanagement, excessive risk, and abuse by management of a quasi-government agency?
NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse.
The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia.
Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book).
Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007.
The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public.
In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.
__________________________________________________________________________________________________________________
Mike Stathis holds the best investment forecasting track record in the world since 2006.
Check here to download Chapter 12 of Cashing in on the Real Estate Bubble.
So why does the media continue to BAN Stathis?
Why does the media constantly air con men who have lousy track records?
These are critical questions to be answered.
You need to confront the media with these questions.
Watch the following videos and you will learn the answer to these questions:
You Will Lose Your Ass If You Listen To The Media
__________________________________________________________________________________________________________________
This article continues.
To continue viewing this entry please sign in to your Client or Member account.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.
We have released an excerpt from the August 2012 Housing Market Analysis contained in the Intelligent Investor.
Compared to the U.S., housing finance in Canada is less subsidized by the government. In fact, the Canadian government’s housing finance policies do not explicitly favor home ownership unlike th...
Taken from the January 2012 Intelligent Investor This is a continuation from Part 1 of this 3-part series. Click here to read Part 1. Historical Examination of Home Ownership Ra...
Taken from the January 2012 Intelligent Investor Overview Home ownership has been a vital component of Washington’s economic strategy for decades. The marketing end of this strate...
Taken from the January 2012 Intelligent Investor Boosting home ownership rates has been a goal shared by all previous U.S. Administrations. With the housing market still vulnerable, the Obama...
The real estate market continues to show little signs of life. Despite record-low mortgage rates and a collapse in home prices, builders see little demand for new homes due to the record-high overhang...
Each month, the media lines up to read the results of the S&P/Case-Shiller Home Price Indices. This group of indices are generated and published by Standard & Poor's and Fiserv Inc. Keep in mi...
About a month ago, I critiqued an article by Forbes which discussed U.S. cities "where the recession is ending." Forbes remains a very popular publication despite the fact that it's very...
In the previous article I showed pictures of the real estate situation in Rotterdam, Netherlands submitted by a reader. As discussed in that piece, Forbes published an article about a m...
When many people mention the collapse these days, the most common response I've heard is "everyone knew it was coming." Perhaps you've heard the same.
Do you ever become confused over daily economic data? If not, then you probably aren’t paying close attention. But that’s not necessarily a bad thing. If you don&rsqu...
I was prepping for an interview later today on the real estate market and I ran across a nice piece from Harvard's Joint Center for Housing Studies release a couple of months ago.
Amidst speculation that Freddie and its big brother Fannie are facing insolvency, U.S. Treasury Secretary Paulson said the primary focus was supporting Fannie and Freddie "in their current form as the...
You’ve all probably seen or heard about the recently released Harvard Housing study. Among other things, the report discusses the fact that the median wage-earner is unable to afford the...
NAR Chief Economist Lawrence Yun continues to prove he's lost in the woods. I'm sure most of you who have followed the real estate market recall his long list of ridiculous predictions. Do you rem...
.jpg)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)