Fannie Mae management required a forecast that would maintain their cap requirements.
BY making this number official Fannie can forgo writing off at least another $100Billion in loan losses between now and April 2013 when they’ll be required to revise their estimates.
This might be a good thing for taxpayers if enough garbage gets shoved through the REO pipeline and Obama isn’t reelected.
Even a RINO like Christie or Guiliani would wipe out FHA/Ginnie Fannie Freddie if in 2013 they have an overhang of 2 years worth of write offs that the management blackholed to maintain their cap requirements to maintain their employment and fat bonuses at the Agencies.
That fat scumbag Richardson from New Mexico just did it in the last weeks of his term, “oh hey, forgot to mention it, but the budget deficit is 100% larger than previously admitted, see ya, peace out suckahs!”
This article was forwarded to me yesterday by another lumber trader I work with. All of us called BS on in.
However, starts are going up from the low of 500,000 but nobody believes we will hit 1.5 million by 2013. I think the 700m # for this year is possible.
Most people do not understand that houses on the average need to be replaced every 75 years. With 300 million people, most economists will state that we need to build 1-1.2 million just to keep up with population growth.
Starts peaked in 2005 at 2.2 million. They bottomed out at 500,000. It is going to take awhile to get back to 1 million.
I posted this article because I like to get the reaction of the people on this board. The reactions were exatly what I thought. The fact is the most people judge the economy based on their own personal experience. It happens in my industry all the time. Just because things are slow in AZ has little to do with things in TX.