Monday, August 18, 2008

Investors Dump Fannie Mae and Freddie Mac Stock

From CNBC:
Investors dumped the stocks of Fannie Mae and Freddie Mac after Barron's reported the increasing likelihood of a U.S. Treasury bailout that would approach nationalization of the two housing finance titans.

The weekly financial newspaper said such a move could wipe out existing holders of the largest U.S. home funding companies' common stock.

Preferred shareholders and even holders of the two government-sponsored entities' $19 billion of subordinated debt would also suffer losses.

Shares of Fannie and Freddie, the two providers of home mortgage funding, fell more than 16 percent and some of their bonds sharply underperformed Treasuries.

19 comments:

  1. Ghad - I predict this will cause prices in Arlington to fall 40%. Its not something I want to see but its coming...Cest la vie.


    Got Bacon?
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  3. Whoever pretends that prices will drop by 40% in Arlington hasn't understood a thing about the real estate market. It's called wishful thinking. It's cute but life just doesn’t work that way ;-)

    The market peaked about 3 years ago and prices in close-in neighborhoods have barely dropped. Inventory levels for July are fairly low (3 to 4 months). A lot of my republican friends have already moved out and my democrat friends have not yet arrived. A new administration moving in and high gas prices will increase the demand in those areas.

    ReplyDelete
  4. "wishful thinking"???

    It's hallucinating!

    Over on the NOVA blog they've whipped themselves up into a frenzy of insanity.


    Their Troll (Leroy) tossed out a knee-slapper. He claims that the recent fall in the houses for sale is due to people pulling them off the market. He calls these "hold outs".

    Then the usual suspects began yammering about how Montgomery County is like Arlington VA (which it's not, it's more like Fairfax but they're not too good with local geography).

    A couple of the cooler heads (CRT and ACE) interjected some rational points but without Lance, they're still waiting for prices to fall.

    It's as if they don't realize that 3 years has gone by and if the close in prices were going to fall, they would have.

    ReplyDelete
  5. "wishful thinking"???

    It's hallucinating!

    Yep - all the bears love to speak of homeowners in denial. This is true, but there is another group to consider - renters or fence sitting buyers in denial.

    Clearly those who think 40% off in Arlington is going to happen are in denial. I guess it takes some people time (3 years or more) to see the light - it just aint gonna happen!

    ReplyDelete
  6. Silly bulls dont you know anything???

    I know this will happen because I saw people from high end areas crying on my couch when they lost 40% of their value back in the 90's LA bust. Therefore the same thing will happen in Arlington this time around. Its not something I want to see but its coming...Cest la vie.


    Got Bacon?
    sizzle-lien

    ReplyDelete
  7. It is wishful thinking that it will not drop 40%. I bet all the Arlington bulls here is younger than 40 years old who is still in high school during the bust in LA in the 90s and Boston in the 80s. I have lived through 2 cycles of this crap and heard all the same arguments 30 years ago. Well, they will live and learn when prices comes down 50% in Arlington.

    ReplyDelete
  8. "I have lived through 2 cycles of this crap and heard all the same arguments 30 years ago."

    Youve never lived through anything like this - no one has.

    Never before has there been speculation fueled by crappy ass loans.

    Never before has that speculation descended like a plague in places like PWC, Loudoun, and Fairfax (somewhat) while largely skipping over Arlington, Alexandria & DC.

    Never before have crap loans been so concentrated in places like PWC, Loudoun, and Fairfax (somewhat) while largely skipping over Arlington, Alexandria & DC.

    This is the first time in 30 years that the population in Arlington and Alexandria are rising.

    This is the first time in 50 years that the population in DC is rising.

    Then again, Im sure you can tell me why none of that stuff matters. Im sure all those factors were at play in the 80s and 90s busts right???

    ReplyDelete
  9. Im sure you can explain to me too how back in the 70s and 80s the biggest drop in prices was years after all the inventory was out of the market - im sure it looked just like this:

    http://www.recharts.com/nova/nova.html

    Look carefully at that - yeah thats right - inventory is WAYYY DOWN and Falling...

    In places like Loudoun and PWC it took years of MASSIVE PRICE DROPS to get there. In Arlington & Alexandria they got there with much smaller drops.

    So explain to me exactly how Arlington which still has the best inventory to sales ratio of ANYWHERE in the metro area by the way is somehow doomed to a huge 40-45% price correction.

    Explain to me how the laws of supply and demand mean nothing and that once all the outer county areas appear posied to flatten (not rise but flatten mind you), that suddenly, without warning, Arlington has a panic sell of 40-45% to catch up with places like PWC

    People, look at that chart again CANT YOU SEE, ITS OVER, ITS THROUGH, THAT INVENTORY IS GONE AND GONE FOREVER!!!

    We are now moving from a period of severe price declines to a period of mild price declines... starting in another 9 months or so.

    Now, I went to be perfectly clear, that PRICES ARE NOT GOING UP ANYTIME SOON. However, to somehow believe that places like Arlington which have had 3 years of mild declines will suddenly switch to huge declines is DELUSIONAL!!!!!

    ReplyDelete
  10. "So explain to me exactly how Arlington which still has the best inventory to sales ratio of ANYWHERE in the metro area by the way is somehow doomed to a huge 40-45% price correction."

    How? Here's how.

    The Troll of NOVABUBBLE lobs a choice flamebait and gets them going,

    "That is not really an accurate way of describing what is taking place. It is clear that large numbers of would-be sellers are not listing their houses in the first place, or if they are, they are pulling them from the market when they fail to sell."

    "Just because inventory is dropping does NOT mean those houses are selling."

    Amazingly, it's just what they want to hear. Of course inventories are low in Arlington, it's because disheartened or scheming sellers are holding back.

    Read through the thread. Once he gets them going, the Troll vanishes. Another job done well.

    ReplyDelete
  11. Of course, the big conspiracy theory, all these sellers waited 3 years and agreed to remove their properties all at the same time to trick the naive buyers...

    Again, wishful thinking, cute, but life just doesn't work that way.

    When prices start going up again, will you claim that sellers bought their own properties at inflated prices to trick the naive buyers ;-)

    ReplyDelete
  12. "Ghad - I predict this will cause prices in Arlington to fall 40%. Its not something I want to see but its coming...Cest la vie.


    Got Bacon?
    sizzle-lien"


    ROTFLMAO!

    ReplyDelete
  13. "Read through the thread. Once he gets them going, the Troll vanishes. Another job done well."

    You mean just like the Troll who lobbed out the 40% arlington number just to get the bears whipped up into a frenzy on this thread? DANCE PUPPETS DANCE!!!

    ReplyDelete
  14. Prices are declining in nice areas in the District proper and they will continue to decline.

    Recession time is here, folks!

    Learn it. Live it. Suck it!

    ReplyDelete
  15. Lien cuts of beefAugust 21, 2008 4:01 PM

    "neilhilist said...

    ROTFLMAO!"

    Glad to know my work is appreciated. Look for a repeat performance of my alter ego sizzle-lein every once in a while to get the straight scoop on whats going on in Arlington.

    ReplyDelete
  16. Straight scoop be the straight declines of

    "price reduced" ...

    "yanked off market"...

    "can't sell dookie."

    You're in the red, and there's no hiding it.

    hahahahahaha...loving it!

    ReplyDelete
  17. "Anon-Troll said...
    Prices are declining in nice areas in the District proper and they will continue to decline.

    Recession time is here, folks!

    Learn it. Live it. Suck it!"

    Sorry Trollie...you got me before, you aint gonna suck me back in again...PEACE OUT!!!

    ReplyDelete
  18. Prices are declining in nice areas in the District proper and they will continue to decline.

    I am watching actual homes in one of the most desiarable neigborhoods in the District not sell, and drop their prices significantly below bubble prices, and still not get sold.

    You idiots are on here like a bunch of Romper Room pukes with dribble crusted on your cheeks stomping your little feet going "wahhhh, but look at the numbers.."

    Numbers don't mean sh*t, actually nice single family brick colonial homes not selling in actually nice neighborhoods do.

    ReplyDelete
  19. I am watching actual homes in one of the most desiarable neigborhoods in the District not sell, and drop their prices significantly below bubble prices, and still not get sold.

    How about posting a link to an actual house.

    ReplyDelete