Brother Can You Spare a Dime?

Reply Wed 5 May, 2010 04:53 pm
Freddie Mac seeks further $10.6bn in US aid

US mortgage giant Freddie Mac saw a loss of $8bn (£5.3bn) in the first three months of 2010 and said it would ask for a further $10.6bn in state aid.

The firm has made a number of federal cash requests since it was taken over by regulators in September 2008.

And it said it would continue to need government funds with the US housing market not yet fully recovered.

The new request brings the total cost for rescuing Freddie Mac to $61.3bn.

Freddie Mac hit trouble during the American property boom, when many higher risk - or sub-prime - loans were made which were not repaid.

The recession also resulted in reliable homeowners with good credit defaulting on payments.

The latest $8bn loss was $6.7bn before adding a $1.3bn dividend payment on senior preferred shares owned by the US Treasury.

On Wednesday chief executive Charles Haldeman said the firm was looking to beef up its underwriting standards and improve credit quality.

"Though more needs to be done, we are seeing some signs of stabilisation in the housing market, including house prices and sales in some key geographic areas," Mr Haldeman said in a statement.

"But as we have noted for many months now, housing in America remains fragile with historically high delinquency and foreclosure levels, and high unemployment among the key risks."
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Type: Discussion • Score: 2 • Views: 1,392 • Replies: 5
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Reply Wed 5 May, 2010 06:05 pm
Hi, djjd62. I cribbed some of your data from here and put it on the long-lasting thread called "Where Is The Economy Headed." You might want to re-post over there.
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Reply Wed 5 May, 2010 06:14 pm
I didn't know companies could pay dividends when they were operating at a loss. Anyhow, where do they get the money?

Uh, nevermind, I think you've answered that.
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Reply Wed 5 May, 2010 06:27 pm
This is socialism for the rich. The rules of free market capitalism are clear, you either make it on your own or you don't and somebody that does it right takes your place and you start over with lessons learned because of consequences.

If the government gives these companies, our tax money (1/4 of your check) against your will that is not true capitalism or true socialism IT'S US GETTING FUCKED.

If you go to the white house and tell them "there going to take my car and then I can't go to work, can I have a bailout?" Thell call the cops on you (1/4 of your check pays for cops, the 1/4 you could use to pay your car payment)

Reply Wed 5 May, 2010 07:15 pm
Hi to you, Amigo. There is a thread called "Where Is The U.S. Economy Headed?" It has 10,000 posts and 100,000 views. I suggested to Djjd62 that his commentary re Freddie Mac would fit in well there and he agreed. I would respectfully suggest that your comment, with no need for any kind of editing, could also belong there where it will get a much larger audience.
I hope to see you there. Thanks. -johnboy
Reply Wed 5 May, 2010 09:16 pm
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