See: Fannie Faces up to $2.8 Billion in new losses--WSJ [Reuters & WSJ] See: It Takes a Licking and Keeps on Ticking! - 4Rs-Ole Bear Commentary See: Economy's Debt Threat by Paul Tharp [NY Post] See: Greenspan Warns of Economic Stagnation by Nell Henderson [Washington Post Staff Writer] See: The Anguish of Central Banking 2005 by Antony P. Mueller [www.mises.org] Ole Bear, Editor Commentary $11.8 Billion in Losses and Counting! At the time I penned the 4Rs It Takes a Licking and Keeps on Ticking!, our readers probably thought I was nuttier than a fruit cake with the analogy of Fanron [Fannie Mae] to a Timex watch and that this GSE could lose more than $9 Billion. [It] Looks like we just added another $2.8 Billion to the pre-existing $9 Billion in Fanron losses. This isn't accounting irregularities in our view -- it is fraud. If folks had any idea of the quality of realty valuation appraisals securing Fanron's portfolio, there would be no more Depends on the retail store shelves -- Coast to Coast. The GSEs have the ability through the appraisal management companies they use to squelch honest review appraisers and honest review appraisals that uncover the bloated nature [mortgage and appraisal fraud] of their loan portfolios when they bleed red ink on the Streets of America in the foreclosure gig. Not only is the sound lending business AWOL, these rascals have the ability to put honest appraisers everywhere out of business. $11.8 Billion and Ticking! Thank the Good Lord that we have the Federal Reserve as the Lender of Last Resort -- I can sleep at night -- although I have a few nightmares about this whole financial holocaust. Folks might want to follow Charlatan Machiavelli at the FED in his foray into various aspects of money, banking, the budget, the deficit, and social security privatization, since all of this stuff will ultimate affect the price of tea in China and Boston Harbor, and ultimately, your local real estate prices. Ludwig von Mises adjunct scholar, Mueller, generally writes some good stuff about money and central banking, and the above essay is a light, but excellent read. Did you know that the Chairman of the Federal Reserve is appointed, and not elected? What are a few nightmares among friends, anyway? Yours
Truly, © 2005 Realty Reality |
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