Fannie And Freddie Are Fine, Bernanke Says

Forbes.com ^ | 07/06/08 | Carl Gutierrez

[syriacus]

Chairman Ben Bernanke of the Federal Reserve told Congress on Wednseday that he believes Fannie Mae and Freddie Mac will make it through the storm in the U.S. housing market.

On Bernanke's second day before Congress, this time in front of Rep. Barney Frank's House Financial Services Committee, the Fed chairman said the troubled Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) were adequately capitalized, and were in no danger of failing.

[syriacus]

Date of article is today....7/16/08

[MARTIAL MONK]

Now we can worry.

[syriacus]

Shares of Fannie rose 13.8% and Freddie jumped 14.6%, but the the market on a whole seemed rather indifferent to the chairman’s comments.

[Petronski]

The title they chose seems odd: did Bernanke actually refer to Fannie and Freddie as “fine” or not?

[agere_contra]

No way. FRE and FNM owe more than they can ever repay. Come the next round of ARM defaults they’ll crush down to dollar shares.

[count-your-change]

Looks like he said they wouldn’t need that second heart transplant.

[syriacus]

According to Bloomberg online, he actually said he was assured that the companies are "fine."

I'm not sure I am allowed to post a Bloomberg link.

[Imperialist]

They will now collapse by the end of the week...

[WayneS]

“Fannie And Freddie Are Fine, Bernanke Says”

Okay. Fine.

But what does Chuck SCHUMER say?

[NVDave]

This, from the guy who said that the sub-prime meltdown was “contained.”

[Petronski]

According to Bloomberg online, he actually said he was assured that the companies are "fine."

That's not the same as saying they are fine, necessarily, just that he had been given such assurances.

[agere_contra]

Good point.

[JerseyHighlander]

This “reassurance” is the final nail in the FM’s coffins.

Give it until the 3rd week of August. June and July 2005 3 years ARMs will reset, and the wound will be opened up.

[syriacus]

That's not the same as saying they are fine, necessarily, just that he had been given such assurances

Exactly. Which is why I wrote what I did.

[Sam Gamgee]

Ben is a LIAR. The house of cards is crumbling and he stares at us and lies his face off.

[waverna]

But ARMs are re-setting lower.

[syriacus]

http://online.wsj.com/article/SB121621541625958501.html

Oil Falls $5 on Gain in Stockpiles
By BRIAN BASKIN
July 16, 2008 12:07 p.m.

[Tijeras_Slim]

You can believe Ben, I was in ROTC with him in College. ;)

[syriacus]

You can believe Ben,

Glad to hear that!