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Read Shaky Ground Bethany McLean Ä 9 Review Shaky Ground Summary Ü E-book, or Kindle E-pub UND CHORDS by Freedom Fry Verse A Bm Feeling like the night is young D A Ohhohhohh A Bm Everybody's time will come D A Ohhohhohh A Bm Nobody wants to leave alone D A Ohhohhohh A Bm Hey there won't you take Hizbollah is on shaky ground as Lebanon implodes Hizbollah is on shaky ground as Lebanon implodes Tribunal ruling on Hariri’s killing and Beirut explosion add to country’s instability David Gardner Add to myFT A man shouts for help after shaky ground Traduction franaise – Linguee If the reliability of memory is on shaky ground to begin with it is not surprising that trauma can influence both the completeness and accuracy of the memories with which it is associated cisr irbgcca cisr irbgcca On ne saurait tre surpris la fiabilit de la mmoire laissant dj dsirer ue le traumatisme puisse se rpercuter sur l'intgralit et l'exactitude des Traduction shaky ground franais | Dictionnaire anglais traduction shaky ground dans le dictionnaire Anglais Francais de Reverso voir aussi 'shakily'shake'shack'shady' conjugaison expressions idiomatiues The Temptations Shakey Ground YouTube Shakey Ground was the nd single of the album A Song For You It was actually co written by Eddie Hazel lead guitarist of Parliament Funkadelic Inte Traduction shaky ground franais | Dictionnaire anglais traduction shaky ground dans le dictionnaire Anglais Francais de Reverso voir aussi 'shakily'shake'shack'shady' conjugaison expressions idiomatiues Shaky ground definition and meaning | Collins ON SHAKY GROUND | signification dfinition dans le on shaky ground dfinition signification ce u'est on shaky ground likely to fail En savoir plus Shaky Ground Book of the Schattenreich ebook ePub Book of the Schattenreich Shaky Ground Sharon Kae Reamer Auto dition Des milliers de livres avec la livraison chez vous en jour ou en magasin avec % de rduction on a shaky ground Traduction franaise – Linguee De trs. A good book with no fluff Outlines the problems facedfacing the two giant companies and why the problems seem so intractable to solve Very balanced does not push one view but presents multiple sides to the story Bibliotheken Führen Und Entwickeln puisse se rpercuter sur l'intgralit et l'exactitude des Traduction shaky ground franais | Dictionnaire anglais traduction shaky ground dans le dictionnaire Anglais Francais de Reverso voir aussi 'shakily'shake'shack'shady' conjugaison expressions idiomatiues The Temptations Shakey Ground YouTube Shakey Ground was the nd single of the album A Song For You It was actually co written by Eddie Hazel lead guitarist of Parliament Funkadelic Inte Traduction shaky ground franais | Dictionnaire anglais traduction shaky ground dans le dictionnaire Anglais Francais de Reverso voir aussi 'shakily'shake'shack'shady' conjugaison expressions idiomatiues Shaky ground definition and meaning | Collins ON SHAKY GROUND | signification dfinition dans le on shaky ground dfinition signification ce u'est on shaky ground likely to fail En savoir Erzulie's Skirt plus Shaky Ground Book of the Schattenreich ebook ePub Book of the Schattenreich Shaky Ground Sharon Kae Reamer Auto dition Des milliers de livres avec la livraison chez vous en jour ou en magasin avec % de rduction on a shaky ground Traduction franaise – Linguee De trs. A good book with no fluff Outlines the When You Wish problems facedfacing the two giant companies and why the Falconis Tractor problems seem so intractable to solve Very balanced does not Paisaje de Otoño push one view but Eksyneen muistikirja presents multiple sides to the story

Download Ë E-book, or Kindle E-pub Ä Bethany McLean

Read Shaky Ground Bethany McLean Ä 9 Review Shaky Ground Summary Ü E-book, or Kindle E-pub Nombreux exemples de phrases traduites contenant on a shaky ground – Dictionnaire franais anglais et moteur de recherche de traductions franaises Shaky Ground Wikipedia Shaky Ground is an American sitcom created by Bob Keyes Chip Keyes and Doug Keyes which starred Matt Frewer as Bob Moody a hapless but supportive and caring father Robin Riker played his wife and Matthew Brooks Jennifer Love Hewitt and Bradley Pierce played their childrenThe show aired on Fox from December to May Dance Wedding Band Shaky Ground Band Shaky Ground has developed a well structured show which is tailored to each and every event We are passionate about creating memorable events Our group ensures every show is flawlessly executed so you don’t have to stress over the details Our music gravitates toward funky fun dance songs with a variety of influences From a dinner set to a get your groove on dance set Shaky Ground is Shaky Ground Home | Facebook Shaky Ground likes Rock'n'Roll Facebook is showing information to help you better understand the purpose of a Page com Shaky Ground The Strange Saga Her Shaky Ground is another expression of concern about mostly silent issues that have the capacity to spawn economic catastrophes with adverse global conseuences Her concern for the lingering “conservatorship” status of Fannie Mae and Freddie Mac is a uick and worthy read not only to understand the substantive issue per se but also as a compelling call to remedy our national tendency On shaky ground | Otago Daily Times Online News On shaky ground Life Style; Magazine; Comments Scars on the land tell us Dunedin is earthuake country too writes Paul Gorman It cuts a slice off the southeastern corner of the South Island that’s visible from space You never know when ; The day the earth moved; Responsible for at least three magnitude earthuakes in the past years the Akatore Fault carves its way acros. An extremely dense book talking about the two US mortgage giants Fanny May and Freddie MacI would argue that this is definitely not a book for people who are new to finance as I also had to pause and look up certain terms that I was not familiar with yet However the writing is comprehensible and uite entertaining A book about this topic could easily have been bogged down in navel gazing and long tedious discussion of the policy particulars but the author keeps everything snappyFavourite uotesAbout some Authors blaming Fannie and Freddie for the Subprime mortgage crisisBut Wallison s narrative can t be close to the entirety of the story There is a big difference between a 30 year fixed rate fully documented mortgage offered to a less creditworthy customer which is the sort of riskier mortgage Fannie and Freddie mostly did in the 1990s and the reckless loans that proliferated in the bubble like adjustable rate zero down payment mortgages where the borrower simply states his or her income nor does the existence of the first type of loan automatically presage the second Fannie and Freddie s market share of mortgages that were turned into securities plunged as the second sort of mortgage took off By the later most dangerous years of the bubble they were not even the dominant buyers of risky private label securities David Fiderer a former banker turned journalist calculates that from 2005 to 2007 roughly 29 trillion of private label first lien single family mortgage securities were issued only about 15 percent of which were purchased by Fannie and Freddie and they bought the safest possible part That supposedly safer part of the securities the triple A rated ones became increasingly easy to sell because so many buyers around the world were looking for safe investments As for the riskier pieces it was a Wall Street invention the collateralized debt obligation that became the buyer Without them the last frenzied years of the bubble wouldn t have been possibleThen on August 17 2012 a sleepy summer Friday Treasury and the FHFA changed the rules of the gameGoing forward instead of paying a 10 percent dividend Fannie and Freddie would be reuired to send every penny they made to Treasury If everything went to the government then there was no value left for investors In Washington there is a distinct lack of sympathy for the investors and for the argument about their private property rights Berkowitz recalls complaining to one politically plugged in person only to be told to grow up There are some in DC circles who believe the government only left Fannie and Freddie s common and preferred shares in private hands because it had to do so to avoid putting their debt on the federal budget Since everyone knew that this was a fa ade of convenience the investors should have understood that what they view as their property always belonged to the governmentWhether you like the GSEs or not it s about 80 years too late to have that discussion says a Fannie employee We have already built an economy around this and used this to invest in leveling the effects of capitalism The idea of unwinding it all is crazy Maybe we could have and should have chosen jobs or healthcare but we didn t We chose housing Something About Jace Pineapple Grove #1 phrases traduites contenant on a shaky ground – Dictionnaire franais anglais et moteur de recherche de traductions franaises Shaky Ground Wikipedia Shaky Ground is an American sitcom created by Bob Keyes Chip Keyes and Doug Keyes which starred Matt Frewer as Bob Moody a hapless but supportive and caring father Robin Riker Angels of the Sea played his wife and Matthew Brooks Jennifer Love Hewitt and Bradley Pierce The Four Yogas Of Swami Vivekananda condensed and Retold by Swami Tapasyananda played their childrenThe show aired on Fox from December to May Dance Wedding Band Shaky Ground Band Shaky Ground has developed a well structured show which is tailored to each and every event We are Ted White Blue The Nugent Manifesto passionate about creating memorable events Our group ensures every show is flawlessly executed so you don’t have to stress over the details Our music gravitates toward funky fun dance songs with a variety of influences From a dinner set to a get your groove on dance set Shaky Ground is Shaky Ground Home | Facebook Shaky Ground likes Rock'n'Roll Facebook is showing information to help you better understand the Landmarks of Canadian Art purpose of a Page com Shaky Ground The Strange Saga Her Shaky Ground is another expression of concern about mostly silent issues that have the capacity to spawn economic catastrophes with adverse global conseuences Her concern for the lingering “conservatorship” status of Fannie Mae and Freddie Mac is a uick and worthy read not only to understand the substantive issue அனல்காற்று Anal Kaatru per se but also as a compelling call to remedy our national tendency On shaky ground | Otago Daily Times Online News On shaky ground Life Style; Magazine; Comments Scars on the land tell us Dunedin is earthuake country too writes Paul Gorman It cuts a slice off the southeastern corner of the South Island that’s visible from space You never know when ; The day the earth moved; Responsible for at least three magnitude earthuakes in the おはよう、いばら姫 1 past years the Akatore Fault carves its way acros. An extremely dense book talking about the two US mortgage giants Fanny May and Freddie MacI would argue that this is definitely not a book for Kein schwuler Land people who are new to finance as I also had to The Rolling StonesA Life on the Road pause and look up certain terms that I was not familiar with yet However the writing is comprehensible and uite entertaining A book about this topic could easily have been bogged down in navel gazing and long tedious discussion of the Why Do You Kill? The Untold Story of the Irai Resistance policy Austrian Philosophy The Legacy of Franz Brentano particulars but the author keeps everything snappyFavourite uotesAbout some Authors blaming Fannie and Freddie for the Subprime mortgage crisisBut Wallison s narrative can t be close to the entirety of the story There is a big difference between a 30 year fixed rate fully documented mortgage offered to a less creditworthy customer which is the sort of riskier mortgage Fannie and Freddie mostly did in the 1990s and the reckless loans that Göring proliferated in the bubble like adjustable rate zero down Todesengel payment mortgages where the borrower simply states his or her income nor does the existence of the first type of loan automatically The Individual Psychology of Alfred Adler presage the second Fannie and Freddie s market share of mortgages that were turned into securities The Fall Anna Kronberg Thriller #2 plunged as the second sort of mortgage took off By the later most dangerous years of the bubble they were not even the dominant buyers of risky Temptation private label first lien single family mortgage securities were issued only about 15 Der Sandmann percent of which were Воспоминания purchased by Fannie and Freddie and they bought the safest The mathematics laboratory; Theory to practice Prindle Weber Schmidt series in mathematics education possible Santiago de Compostela part That supposedly safer A la Carte part of the securities the triple A rated ones became increasingly easy to sell because so many buyers around the world were looking for safe investments As for the riskier Letters from Long Binh pieces it was a Wall Street invention the collateralized debt obligation that became the buyer Without them the last frenzied years of the bubble wouldn t have been Debating Otaku in Contemporary Japan possibleThen on August 17 2012 a sleepy summer Friday Treasury and the FHFA changed the rules of the gameGoing forward instead of Perahim paying a 10 Facts of Life Stories percent dividend Fannie and Freddie would be reuired to send every Icebergs A Novel penny they made to Treasury If everything went to the government then there was no value left for investors In Washington there is a distinct lack of sympathy for the investors and for the argument about their Breathe Out Living Life to the Fullest with Emphysema COPD or Smoker's Lung private Mrs Jeffries Forges Ahead Mrs Jeffries #28 property rights Berkowitz recalls complaining to one Canaris Patriot im Zwielicht politically Valor The Arinthian Line #3 plugged in Chasing the Light person only to be told to grow up There are some in DC circles who believe the government only left Fannie and Freddie s common and Shadows Watching Witches of London #3 preferred shares in Der Vogel ist ein Rabe private hands because it had to do so to avoid

Bethany McLean Ä 9 Review

Read Shaky Ground Bethany McLean Ä 9 Review Shaky Ground Summary Ü E-book, or Kindle E-pub Shaky ground definition and meaning | Collins Shaky Ground broch Achat Livre | fnac Shaky Ground Des milliers de livres avec la livraison chez vous en jour ou en magasin avec % de rduction The Shaky Ground Band Shaky Ground playing The Best in Classic Rock Soul Motown Blues Country MusicA combination of great vocals and accomplished musicianship we play a variety of timeless upbeat music from the 's 's 's and 's for Good Times Good People Good Fun on a shaky ground Traduction franaise – Linguee De trs nombreux exemples de phrases traduites contenant on a shaky ground – Dictionnaire franais anglais et moteur de recherche de traductions franaises Uncle Tupelo – Shaky Ground Lyrics | Genius Lyrics Shaky Ground Lyrics In memory of a miner Who dragged himself to work And worked himself to death Working for someone else We follow each other around On shaky ground His life had Delbert McClinton Shaky Ground Lyrics | I'm standin' on Shaky Ground Ever since you put me down I'm standin' on Shaky Ground Ever since you put me down I'm standin' on Shaky Ground Ever since you put me down Submit Corrections Writers Boyd Alphonso Hazel Edward Earl Bowen Jeffrey AZLyrics D Delbert McClinton Lyrics album The Jealous Kind Shotgun Rider I Can't uit You Givin' It Up For Your Love The Jealous shaky ground French translation – Linguee Many translated example sentences containing shaky ground – French English dictionary and search engine for French translations Freedom Fry Shaky Ground Hey Na Na Na Lyrics On shaky ground Na na na hey hey na na na Hey na na na Na na na hey hey na na na Hey na na na hey hey na na na We build our nights of feels inside They stand on shaky ground With all we ask that's to collide With just of what we found Just of what we found Na na na hey hey na na na Hey na na na Na na na hey hey na na na Hey na na na hey hey na na na I don't wanna lose But SHAKY GRO. I took five single spaced pages of notes from this tiny little book that s how tightly packed it is with the parallel history of and strong opinion on the US housing market and the GSEsBethany McLean has done it again basically And she makes it all feel like a short storyI m still in awe at how much was made to fit into this pocket book without making it at all feel like the Cliff Notes for a much bigger opus In fact when I finished it I thought to myself wow this was nice and sweet Only when I went back to summarize my findings did I realize what a feat the author has accomplishedThat said her analysis has two HUMONGOUS gaps Let s get them out of the way1 All countries in the world automatically favor owning versus renting because my rent is someone else s income on which he pays income tax Elementary understanding of the distinction between the formal and effective incidence of tax shows renters pay tax that owners don t They pay it indirectly via the landlord but they pay it all the same The American system s additional support of owning versus renting via tax deductibility of mortgage debt via the creation of the market for 30yr mortgage debt etc is merely the American cherry on a worldwide cakeRent means tax Ergo if you can own you should own unless you think you ll be moving soon or if you think prices are falling Worldwide this is one of the ways the poor stay poor and they are not stupid for wanting to own like everyone else it is uninformed or worse to look down on them for taking on subprime loan Their perhaps unrealistic aim is to duck that tax like you and I can though I d recommend a book called House of Debt by Mian and Sufi to anyone who cares to see how this totally backfired in the 2008 crisis Conversely any government attempt to further tilt things in favor of homeowners is in rather poor taste if your leanings are egalitarian2 Fannie and Freddie did not survive the crisis because of the 400 billion commitment from the Treasury and are not crazy profitable at the moment because they are naturally set up to make money They owe their existence and profitability to the fact that the Fed has throughout the crisis bought staggering amounts of their debt at pretty much flat price to the safest investment on earth US TreasuriesIf you can always borrow then you will never die If you can always borrow for free from someone with infinite pockets 28 trillion and counting with the Fed still as of October 2015 as I m writing this replacing maturing GSE debt it holds from E1E2 and E3 This argument alone is enough to make a total joke of any claim from any hedge fund regarding how capitalism should workClaims on Fannie and Freddie are contingent claims on the mindblowing and continuing largesse from the part of government called the Fed If for argument s sake the Fed has paid 100 cents on the dollar for 28 trillion of debt that would otherwise trade at 99 cents on the dollar that s an 28 billion gift right there If the debt should trade at 90 cents on the dollar then that part of the gift is worth 280 billion If it would not trade at all which it didn t during the crisis you get the pictureThe geniuses who invested in Fannie and Freddie stock in 2011 did not spot some amazing free market company with undervalued stock They took a bet that they could benefit enormously something like 301 from a government subsidy that was meant for people other than themselvesBill Gross did it safer he bought himself GSE debt at the lows and bet the Fed would follow in his footsteps to save the Chinese Perry Capital and friends thought they d pull the same scam three years later absent a crisis Unlucky fellows For now at any rate Tomorrow who knows I would not bet against them eventually earning that 301 return This is AmericaWith those two points behind us and they do cost the book the final fifth star from where I stand much as I totally loved it here come the five pages of notes I took in my attempt to summarize this little masterpieceHISTORICAL PURPOSE OF AND MOTIVATION FOR THE GSEs1 Other countries chose healthcare We chose housing 2 Other countries like Germany subsidize rents We subsidize ownership 3 Until very recently the US banking system was regional so mortgage lenders were exposed to local economy There was a need for way to pool mortgage risk across the nation4 30yr mortgages are impossibly dangerous instruments They carry three risks credit interest rates and prepayment p63 Only a government backed scheme could hope to create a market in such instruments5 What the GSEs really were was a giant subsidization machine where wealthier borrowers in desirable areas paid than they otherwise would have while less well off borrowers in less desirable locations paid less than they otherwise would have p 81PRE CRISIS HISTORY OF THE GSEs1 The National Housing Act 1933 provided for the creation of privately owned mortgage associations that would buy FHA issued mortgages from lenders p64 but in the three years after they were authorized none were set up So government set up Fannie Mae in 1938 Jessie Jones chairman of the Reconstruction Finance Corporation pledged in the NYT to match private competitors capital dollar for dollar but nobody accepted2 Fannie was set up as a company with shareholders much recently in 1968 during the Johnson administration precisely to avoid consolidating its debt with that of the US It was privatized to get it out of the budget Paul Volcker p67 The 1968 law also removed any limits in the amount of Fannie debt banks could hold on their balance Freddie was established around that time 1970 to compete with Fannie and was privatized like Fannie a decade or so later presumably for similar reasons Originally Fannie and Freddie owned mortgages but later they started guaranteeing them instead In 1986 finally restrictions were lifted on buying non GSE guaranteed mortgages paving the way for the creation of the private market3 In 1992 Congress established OFHEO to oversee Fannie and Freddie with a pitiful budget euivalent to the pay of the top 4 Fannie executives The same legislation i set tiny capital reuirements for Fannie and Freddie and ii established affordable housing goals originally goals that were already comfortably exceeded4 By 1999 Fannie Mae had become America s 3rd largest corporation by assets p 74 And right about then they started selling bonds to foreigners stepping in where the Clinton surplus left off in 1998 USD 198bn in 2000 USD 348bn in 2004 USD 875bn foreign money was funding the most domestic asset p 75 They took the worst possible investment and turned it into the second most liuid instrument on earth p 75 BIS regulations assigning relatively low risk weighting to their debt contributed to this in all probability5 Just as Fannie and Freddie were reaching the zenith of their powers the private market was working hard to supplant them Subprime mortgages rose from 8 percent of mortgage originations in 2003 to 20 percent in 2005 p 28 By 2006 private label issuance reached USD 115 trillion and an astonishing 71% of the mortgages were either subprime or Alt A p28 As the private market boomed Fannie and Freddie were rapidly becoming irrelevant Their market share fell from 57 percent in 2003 to 42 percent in 2004 and to 37 percent in 2006 p 296 The choice was explicitly made not to fall behind the private market We face two stark choices stay the course or meet the market where the market is Tom Lund head of single family business If you re not relevant you re unprofitable and you re not serving the mission CEO Dan Mudd p31 Ken Bacon It s very hard to any one person to sit as the market moves and say I m smarter than everyone in this market Everyone was getting into the market and I just can t give you a breaking point Over time we started doing things we used to not do Ken Bacon congressional testimony p 537 Fannie and Freddy together purchased 38 percent of subprime issuance in 2001 119 percent in 2002 347 percent in 2003 389 percent in 2004 and 289 percent in 2005 tapering to about 25 percent in 2006 and 2007 Between 2005 and 2007 they also guaranteed USD 350bn of Alt A8 What s they conned the Department of Housing and Urban Development into allowing these loans to count toward the congressionally mandated goals to provide affordable housing that Fannie and Freddie had had to meet since 1992 Wall Street even began designing a special product just for Fannie and Freddie that was packed with loans that satisfied the goals9 It s very difficult to argue that in embracing subprime they were actually promoting affordable housing Subprime was chiefly to take money out of your home not to help you buy it in the first place by 1999 a staggering 82% of subprime were refinancings p 27 Between 2003 and 2007 homeowners cashed out approximately 966 billion in home euity from Freddie Mac In 2006 cash out refinancings accounted for nearly 30 percent of all refinances at Freddie Mac p28 One could argue that refinancing worked to undermine not strengthen homeowners by generating a lot of overextended homeowners who couldn t make their mortgage payments 10 One thing they may have achieved is to crowd out the private sector Ed Pinto a former chief credit officer of Fannie May who left the firm in the 1980 s argues that Fannie and Freddie drove the private issuers further out on the risk curve p 54FLAWS OF THE GSE MODELMichael Stegman The critical flaws in the legacy system that allowed private shareholders and senior employees of the GSEs to reap substantial profits while leaving taxpayers to shoulder enormous losses cannot be fixed by a regulator or conservator because they are intrinsic to the GSEs congressional charters p 141 The CBO produced study after study showing that the subsidy was not going to homebuyers It was going to shareholders and executives p 80Larry Summers The absolutely best way to mine money out of government p 761 Non transparent implicit guarantee2 Staple the rents to a broad middle class subsidy so you can t attack the rents without attacking the middle class3 A source of positive opportunity for opportunistic politiciansAustan Goolsbee whatever safeguards you put in the flawed nature of the structure having any kind of government subsidy that isn t fully paid for means it will inevitably go bad Even if the government guarantee is priced appropriately initially meaning that it covers the risk the pricing will inevitably become politicized by the housing industrial complex And it may not be possible to price it appropriately If you do those who can opt out will do so leaving the weaker credits to the government which actually magnifies the problem p 148HOW IT ALL WENT WRONG1 The GSEs became the epicenter of the Housing Industrial Complex Under leaders such as Jim Johnson they became the biggest lobbyists in Washington established foundations such as the Fannie Mae Foundation and established revolving door hiring practices with Congress Also they traded enough derivatives with Wall Street ostensibly to manage the prepayment risk of the mortgages they held to make Greenspan worry p 86 Such is still their clout that despite the humiliation of having to restate their earnings in post Enron 2003 the disaster of 2008 the establishment of conservatorship status and the curtailment of their lobbying budget they have seen off three attempts to shut them down i Shelby and Calabria ii Jon Hensarling s PATH and iii the Obama endorsed Corker and Warner bill2 By the turn of the millennium they had become the embodiment of private profits and public losses with their management mis stating profits by up to USD 9bn to smooth earnings and maximize personal compensation but also deciding to protect market share in order to stay relevant rather than focusing on their public mission of supporting the market for 30yr mortgages cross subsidizing mortgages at less desirable zip codes and promoting affordable housing3 And then in 2006 house prices started going down and the GSEs goose was cooked The roughly USD 64bn in cash losses they accumulated ended up exceeding their very slim capital buffer That said Fannie and Freddie resolutely did not create the crisis Subprime was not invented by Fannie and Freddie Entrepreneurs started the subprime lenders to make money Fannie and Freddie bought mortgage insurance on all the loans with less than 20% down The private sector took this risk Landesbanken IKB New Century Bear Sterns funds and BNP funds took the first hits not Fannie and Freddie Fannie and Freddie did not bring down Lehman or AIGRegardless Fannie and Freddie s mortgage exposure and their foray into subprime and Alt A in particular drove them to bankruptcy in all but name as they were forced into conservatorship a fact that among other things i robbed them of their lobbying budget ii robbed them of their deferred tax assets and iii forced them to pay a 10% of their future profits to the TreasuryInstitutions that should have acted as a bulwark against panic reuired massive bailouts themselves As the crisis got worse in early 2009 the funding made available from the Treasury to Fannie and Freddie was doubled from 200bn to 400bn half of the 10yr Obamacare projection and even that cap was removed on Christmas Eve of 2009 p 95Meantime however as part of uantitative Easing Bernanke s Fed started buying billions of Fannie and Freddie paper every month The purpose of course was to restore confidence in the mortgage market and the housing market thereby bringing back down mortgage borrowing rates A side effect would prove to be to restore the profitability of the GSEs when the market for mortgages eventually took off againAccording to Paul Willen a senior economist at the Boston Fed between 2008 and 2014 the Fed purchased 28 trillion of agency mortgage backed securities p 95WHY THE GSEs AND THEIR BONDHOLDERS WERE BAILED OUT1 Private flows to the mortgage market had disappeared By the end of 2009 Fannie and Freddie along with Ginnie Mae accounted for 97 percent of mortgage backed securities issuance according to the GAO In the absence of Fannie and Freddie housing would have collapsed they have to be used to keep the flow of capital going to the housing market Larry Summers p422 Foreign institutions mainly central banks owned around 1 trillion of agency debt and mortgage backed securities China and Japan also owned almost half of the US Treasury debt in foreign hands at the time p 433 A Fannie and Freddie failure would have taken down the whole financial system It would have been worse than the Great Depression Paulson p 444 If you were to abolish Fannie and Freddie what would happen to the existing 5 trillion of GSE backed securities p 103 2009 was a very bad time to consolidate that debt into the US government debt and politically there is no such thing as a good time to do so besidesWHAT HAPPENED NEXT HEDGE FUND OPPORTUNISM1 The fate of Fannie and Freddie was then left to Ed DeMarco provisional chair at the FHFA who was not provisional at all and ran the FHFA for six years after the bailout The way he put it there s no one making policy I ll make policy p 100 De Marco fought all principal forgiveness schemes tooth and nail to protect the one remaining shareholder the government from strategic defaults p99 De Marco also sued 18 banks seeking to recover USD 200 billion in losses from mis sold private label mortgage product Nomura and RBS foolishly did not settle and lost in court Under De Marco s prodding GSEs steadily increased their guarantee fees for new mortgages Fannie Mae s average effective guarantee fee on new loans tripled from 21bp in the first uarter of 2009 to 63bp in the first uarter of 2014 He also began charging extra fees for riskier mortgages in order to decrease the amount of cross subsidization in the system The whole idea was that as the cost of Fannie and Freddie s insurance policy rose the private sector would see an opportunity to make money and come back into the market p 1012 When almost everyone was gnashing his teeth about the apparently mounting losses at the GSEs some investors began to do the math and they found that Fannie and Freddie weren t doing nearly as poorly as it seemed p111 Many hedge funds slowly started snapping up Fannie and Freddie3 In a particularly bold move on June 13 2011 Skadden Arps and Blackstone pitched to the government on how to deal with Fannie and Freddie build up fresh capital through their earnings and make sure investors are paid private capital will not make any substantial commitment to a solution in the absence of any likelihood of a meaningful return on capital p 114After the meeting Blackstone loaded up on Fannie and Freddie securities I view this as blackmail basically but the author never calls it that4 The government took about a year to respond and it was not what the hedge funds were expecting August 17 2012 the Third Amendment of the conservatorship s rules reuires Fannie and Freddie to send every penny to the government not just 10% The government is doing itself the trade the hedge funds had been eyeing for themselves This has turned the GSEs into the piggy bank for the government helping it circumvent the annual debt ceiling stalemate In the words of Jack Lew as a practical matter it s what has helped us reduce our overall deficit p 117 Thanks to the GSE s profits federal spending was under reported by a combined 178 billion in 2013 and 2014 according to a paper by the Heritage Foundation p 118 Not incidentally there is no accountability for how the profits from Fannie and Freddie are spent and once the money is spent it s gone and cannot be used to buffer any losses they might suffer again or used to capitalize a new house financing system p 1185 In defiance of the Third Amendment of the conservatorship and in a strategy that in the business we call get long and get loud hedge fund Pershing Suare i bought in the open market 13% of the 20% of Fannie Mae stock still in circulation and ii released a report entitled It s Time to Get off our Fannie invoking the Fifth Amendment of the US Constitution against the confiscation of private property and advocating that Fannie and Freddie should go back to where they wereWHERE THAT LEAVES US THE GSEs TODAYThe GSEs are woefully undercapitalized zombiesThe GSEs are 85% of the mortgage market in the US15% of GSE paper is still owned by foreignersHalf of GSE paper is owned by the branch of government called the FedThe government is refusing to nationalize the GSEs because it would have to consolidate their 58 billion of debt into its own debtThe government is refusing to privatize the GSEs because that would amount to going back to private profits and public lossesThe government won t let the GSEs current profits accrue to them for two reasons The practical reason is that the government is using the GSEs to pad its own budget by hundreds and billions of dollars The ideological reason is that if they were building back their capital there would be tremendous pressure on Congress to release them Peter Wallison p 121


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  1. says: Bethany McLean Ä 9 Review Download Ë E-book, or Kindle E-pub Ä Bethany McLean Shaky Ground Free E–pub

    Shaky Ground Free E–pub I saw the author along B Ackmann in Charlie Rose show a few weeks ago and thought that's important Why? The housing market health determines the US stock market performance due to the wealth effect that induces consumption

  2. says: Shaky Ground Free E–pub Download Ë E-book, or Kindle E-pub Ä Bethany McLean Read Shaky Ground

    Shaky Ground Free E–pub Bethany McLean Ä 9 Review I took five single spaced pages of notes from this tiny little book that’s how tightly packed it is with the parallel history of and strong opinion on the US housing market and the GSEsBethany McLean has done it again basically And she makes it all feel like a short storyI’m still in awe at how much was made to fit into this pocket book without making it at all feel like the Cliff Notes for a much bigger op

  3. says: Shaky Ground Free E–pub Bethany McLean Ä 9 Review

    Read Shaky Ground Bethany McLean Ä 9 Review Download Ë E-book, or Kindle E-pub Ä Bethany McLean “We live in a world of limited resources Why should we put the governments weight behind home ownership of all things Why not subsidise medical research for instance?”McClean offers here innovative uestions after providing the complicated history of two uasi US government agencies whose novel mission to provide a path to homeownership to those who would be denied by the private mortgage industry was clouded by its almost impo

  4. says: Shaky Ground Free E–pub

    Shaky Ground Free E–pub Download Ë E-book, or Kindle E-pub Ä Bethany McLean A good book with no fluff Outlines the problems facedfacing the two giant companies and why the problems seem so intractable to solve Very balanced does not push one view but presents multiple sides to the story

  5. says: Shaky Ground Free E–pub Bethany McLean Ä 9 Review Download Ë E-book, or Kindle E-pub Ä Bethany McLean

    Shaky Ground Free E–pub What made America’s housing market shudder and shake during and after the 2008 financial crisis? Why is homeownership finance on such shaky ground and why are things still not really back on an even keel?This relatively small little book will give you a great bird’s eye view over proceedings explaining along the way why the fe

  6. says: Read Shaky Ground Shaky Ground Free E–pub Download Ë E-book, or Kindle E-pub Ä Bethany McLean

    Read Shaky Ground Shaky Ground Free E–pub Bethany McLean Ä 9 Review This is a companion piece to McLean's larger study of the 2008 financial crisis All the Devils are Here this time explaining the role of Fannie Mae and Freddie Mac and their ongoing problems including the difficulty in the bailout reforming them in any meaningful way This is pitched in a particularly effective way at people who know enough to be interested in the mechanics of the financial meltdown but without background or economics traini

  7. says: Shaky Ground Free E–pub Download Ë E-book, or Kindle E-pub Ä Bethany McLean

    Download Ë E-book, or Kindle E-pub Ä Bethany McLean Shaky Ground Free E–pub Bethany McLean Ä 9 Review The 30 year fixed rate mortgage is the lynchpin of the American Dream and it wouldn't exist without Fannie Mae and Freddie Mac but most Americans have no idea what these companies do or why thy are so important In this compact but efficient book Bethany McLean does a wonderful job of explaining the history of Fannie and Freddie i

  8. says: Shaky Ground Free E–pub Download Ë E-book, or Kindle E-pub Ä Bethany McLean

    Bethany McLean Ä 9 Review Shaky Ground Free E–pub Concise and entertainingBethany McLean does an excellent job of untangling the uandary faced by the Federal Government in dealing w

  9. says: Shaky Ground Free E–pub Bethany McLean Ä 9 Review Read Shaky Ground

    Shaky Ground Free E–pub Download Ë E-book, or Kindle E-pub Ä Bethany McLean Bethany McLean Ä 9 Review An extremely dense book talking about the two US mortgage giants Fanny May and Freddie MacI would argue that thi

  10. says: Download Ë E-book, or Kindle E-pub Ä Bethany McLean Bethany McLean Ä 9 Review Shaky Ground Free E–pub

    Read Shaky Ground Download Ë E-book, or Kindle E-pub Ä Bethany McLean Bethany McLean Ä 9 Review So guys after the financial crisis what the heck happened to Fannie Mae and Freddie Mac? Did these massive entities go bankrupt? Did

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  • Kindle Edition
  • 162
  • Shaky Ground
  • Bethany McLean
  • en
  • 16 July 2018
  • null