Tag: Freddie Mac

The stealth bank bailout via leveraged FHA loans

The stealth bank bailout via leveraged FHA loans

When David Stevens left his position in the Obama Administration in 2011 as the head of the Federal Housing Administration to go to head the Mortgage Bankers Association, the chief lobbyist for the industry he once regulated, I posted on the revolving door of corporatism, noting how common this sort of thing is. The interesting thing about this is that […]

More on Banks Making Shed Loads But Fannie And Freddie “Losing Money as a Matter of Policy”

More on Banks Making Shed Loads But Fannie And Freddie “Losing Money as a Matter of Policy”

Fannie and Freddie have already been nationalized and the government is already on the hook for hundreds of billions of dollars of losses as a result. Clearly, this makes it a lot easier to use the GSEs as vehicles to pump money into the economy because any incremental loss is completely obscured by the existing gargantuan losses. Fannie and Freddie can essentially become a giant stimulus slush fund for the Obama Administration as we head into the 2012 election.

Shiller: Austerity Negative for Housing

Shiller: Austerity Negative for Housing

Economist Robert Shiller spoke with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart” on Tuesday. Shiller sees the likely austerity that the US will see as a result of the debt ceiling debate as negative for housing demand and expects this to impact prices. Video embedded in post

No Crisis Here

No Crisis Here

I decided to look at what President Bush’s Council of Economic Advisors (CEA) were saying in their annual reports for 2005-2007 about the massive real estate bubble, epidemic of accounting control fraud and mortgage fraud, the resultant rapidly developing financial crisis, and the great increase in economic inequality. Here’s what I found on these topics.