Fannie Mae Enron?

The Wall Street Journal ^ | Wednesday, February 20, 2002

[TroutStalker]

We were reading President Bush's budget the other day (we know, get a life), when we came across an unusual mention of our all-time favorite companies -- Fannie Mae and Freddie Mac. What we found is a tale we think taxpayers and investors should want to hear.

[SauronOfMordor]

Enron made unhedged, unlimited, full risk bets on the wrong side of the market--end of story. If Enron had not done that, they would still be sitting in Houston. Maybe top management did not understand the true impact of their bets on the financial condition of the company and that contributed to the problem. But Enron is a relatively limited business story.

Or perhaps a more accurate analysis would be that the execs at Enron saw an opportunity to personally cash in (via stock options) by artificially running up the value of Enron, then having themselves and their friends bail out at the peak and leave the suckers holding the bag. In that case, the execs basicly engaged in one of the biggest theft-by-fraud cases in history

It would be interesting to discover what "big names" rode Enron up, then bailed before the crash. I don't think this crash was a mistake caused by stupidity -- it was a looting of value

[pointsal]

Good post, right on target. Anybody remember the S&L scandal? These outfits have already lowered their property appraisal standards by converting to automated valuation models (AVM's), which means that live human being have NOT been inside their collateral or stretched a tape measure around the house. Does it stink, probably!!! The other place to go look is in the area of compensation for the senior staff members at these institutions. Anyone for pork?

[rohry]

Good post. Thanks. I see Freddie Mac is down 3% so far this morning on the news.

[Dukie]

Hey Huck & rob - you may be interested.

[cadillac cowboy]

"Steamships, airplanes ... what's your next analogy?"

How about?...inching toward the exit.

[Dukie]

Bump for your reading

[bvw]

Deadheading -- in the trainman's sense.

[It'salmosttolate]

"Maybe this time Congress should hold hearings before things go wrong." = It's almost too late

[razorback-bert]

I've never been through a market collapse like Houston of the 80's

I was there and lived through it. I can tell you stories, like one of my salesman who walked out of his house into another, because of the change in interest rate and payment. People were moving out and deeding their house to someone in the cemetery, the real estate market in Houston before then was over heated, over priced with sky high interest rates. A friend of mine, who was made redundant at Houston Natural Gas, bought sheets of plywood and hired street laborers and boarded up vacant house for a living. Whole neighborhood were going vacant, I bought a condo that six months before was on the market for $90k for $18, then two months later the one next door sold for $9.

The feds with recovery plans for the S&Ls (I am blocked on the name) actually fouled things up even more, but that is a another set of stories.

[junta]

bttt for Noland's Credit Report This could be the mother of all shorts. The head of one of these monstrosities is one Franklin Raines a Clintoid flunky who runs his outfit with a political liberal ethics, bad for business.

[razorback-bert]

Derivatives are beginning to look like a daisy chain, A covering B, B covering C, C covering D and on and on.

[Slyfox]

Maybe this time Congress should hold hearings before things go wrong.

If I hold my breath I might die.

[razorback-bert]

AOL Time Warner (AOL) are accelerating to the downside, and have now reached levels not seen since December 1998. The stock is getting knocked $2.57, or 10 percent lower, to $22.95, and has hit an intraday low of $22.88. Triggering the sell-off was a downgrade from Lehman Bros. analyst Holly Becker, who cited concerns over the company's America Online division's growth prospects (see 5:50 item). Volume in AOL shares have reached 27 million shares, enough to make it the NYSE's most-active issue

[cadillac cowboy]

"Derivatives are beginning to look like a daisy chain, A covering B, B covering C, C covering D and on and on."

Like a bet on a bet on a bet ?....'and on and on'.

[anymouse]

Ping for the next Enron. Wonder how x42 policies encouraged this irresponsible behavior by Federally chartered (and underwritten) companies.

[Dukie]

Thanks for the ping on AOL bert. You mentioned Houston in the 80s ... man I remember it well. Fortunately I was a renter when I was there back then.

[linn37]

hey I just refinanced through Fannie Mae,what does that mean to me if anything?

[Alamo-Girl]

Thanks for the heads up!

[GEC]

Oy!

Not good

How can these federal agencies donate to political campaigns? That makes no sense whatsoever.

[Eustace]

Hi Dukie

I just sent You an interesting e-mail concerning the bag that we are holding as "taxpayers" and not "Citizens".

I don't know what to say anymore. We have been conned by our government. Eventually it will cost many of us our lives and any who are left their "freedom". I don't accent this freedom we believe we have because it is an illusion.

As far as I'm concerned we don't owe the banksters anything. They have strongarmed us into their economic slavery, and extort money from us under the threat of prison.

We are living in a "modern" Rome paying homage to Caesar through "licenses" (Licit, in ancient Rome)for things we believe to be freedoms.

I guess I can't expect people to fight for something they don't understand (I do know that many fine People here on FR know what Freedom is).

They can be stopped People, easily. Quit accepting their lies and hold them to Gods' Laws. They and the maggots they work for cannot stand in His Light. I guarantee that on my life.

This mafia hiding behind the guise of our government is murdering innocent unarmed men , women and children around the world, in the name of a new order.The same as the government of Germany did in WWII for the banksters. As a matter of fact German bankster Paul Warburg was the chief architect of our federal reserve act in 1913, for German bankster Rothschild. Working to install their world rule at any price.

More important than the money side of this, is the responsibilty we have for financing these murders and turning our heads, allowing it to happen.

Does America stand for anything anymore? Do American's stand for anything anymore?

When do "We" Stand Up with our Shepard?

He gave us Free Will for a reason. Are "We" men/women enough to use it, as it was meant to be used. WWJD? Or are we just sheep to be shorn, like the banksters think.

Lots of people will be crushed when they lose their "money", and it's going to happen soon. That's because they have accepted the bankers definition of freedom, believing that money is life.

Think about this, the signs at the banks say "Backed by the faith of the federal government" federal reserve notes are backed by NOTHING. There's only one Faith that offers us any Life, and we're turning our backs on Him.

Whose court do You want to Stand in, Caesars' or Christs'.

Incorporation of our Churches

Bankruptcy of America

You won't be allowed to sit on the fence.......