• 21 Oct 2008 at 12:24 PM

Oh, NOW I Get It.

By Equity Private

I’m trying very hard to keep a straight face here. Reuters gives us this:

With plans to drop some executive perks and trim the costs of home buying, Fannie Mae and Freddie Mac are quickly being transformed from profit-making companies into government-run entities with a single-minded mission to restore the ailing U.S. housing market.

Fannie and Freddie back to basics as aid flows [Reuters]

Comments (11)

  1. 1
    Posted by StupidEquityGuy | October 21, 2008 at 12:31 PM

    Someone is tagging C’s bids… its LOD all day long… now on sale for 9.5% less and climbing… Here comes single digits… so besides the divie cut… whats up in Panditsland?
    ~SEG

  2. 2
    Posted by guest | October 21, 2008 at 12:33 PM

    LEH CDS speculation/rumors?
    only a guess…

  3. 3
    Posted by guest | October 21, 2008 at 12:53 PM

    SEG – GS downgraded C to sell this morning. Working a pair trade – sell C buy MS.
    GS – 12 month target on C – $11

  4. 4
    Posted by guest | October 21, 2008 at 12:53 PM

    SEG – GS downgraded C to sell this morning. Working a pair trade – sell C buy MS.
    GS – 12 month target on C – $11

  5. 5
    Posted by guest | October 21, 2008 at 12:55 PM

    Sorry for the double print.
    SEG – this is for your reading enjoyment.
    http://ftalphaville.ft.com/blog/2008/10/20/17216/time-for-the-darwinian-flush/

  6. 6
    Posted by guest | October 21, 2008 at 12:56 PM

    Well, I guess they weren’t too good at being for-profit enterprises before, so…
    And in fairness, the whole idea of GSE’s was bunk. Either they’re the Federal Department of Home Loans or they’re not.

  7. 7
    Posted by StupidEquityGuy | October 21, 2008 at 12:56 PM

    TY #3,4, I was up late last night working on a project and missed this mornings shit show of changes.
    I am long C puts, so its making me smile, I also am hedging my GS exposure at the PB level so working my own paired trade…
    ~SEG

  8. 8
    Posted by Anal_yst | October 21, 2008 at 1:27 PM

    where is the Forehead Slapper on this one…

  9. 9
    Posted by merkin capital partners | October 21, 2008 at 1:53 PM

    I think that excerpt was the same in the 1999 article but with “low income” between “ailing” and “US”

  10. 10
    Posted by guest | October 21, 2008 at 2:13 PM

    Yes, but Fannie and Freddie’s task will remain the same: to give people home loans based on their race rather than their ability to repay the loan.
    After all, we’re still in that epidemic of redlining, particularly now that credit is getting tighter.
    Fannie and Freddie will still be giving campaign contributions to those politicians who will keep the tax dollars flowing to them and keep away the regulators who want them to have the same accounting rules as other loan companies.
    Since the monster will be seen as basically a welfare program, it will not matter how much in the red they run, after all, they’re a non-profit government aid program.

  11. 11
    Posted by Anal_yst | October 21, 2008 at 3:05 PM

    @ 10
    Pretty sure FNM/FRE “officially” suspended all of their lobbying activities, take of that what you will…

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