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Friday, March 29, 2024

Fannie Mae asks for another 8.4 billion after, once again, experiencing a loss

Courtesy of Cheeky Bastard

Nothing to say on this really, except that Bernanke will be more than happy to oblige every and all requests which will further his goal of destroying the dollar and bring the dollar down to 1.0000 ER against his Zimbabwean brother from another mother.

Via Bloomberg

 
 

May 10 (Bloomberg) — Fannie Mae, the mortgage-finance company operating under federal conservatorship, said it will seek $8.4 billion in aid from the U.S. Treasury Department after reporting an 11th-straight quarterly loss. The company lost $11.5 billion in the first three months of this year, it said today in a Securities and Exchange Commission filing. Fannie Mae had posted $136.8 billion in losses in the preceding 10 quarters, and the new aid request would bring its total draw from the Treasury to $84.6 billion since April 2009. Fannie Mae said the quarterly loss was largely attributable to new accounting rules that required the company to move $1.5 trillion in mortgage guarantees to its balance sheet. Shares of Washington-based Fannie Mae rose 4 percent to $1.07 in New York Stock Exchange Composite trading at 10:58 a.m. after climbing as much as 11 percent earlier.

Also expect the market in bonds, stocks and CDS to remain largely decoupled in spite of the falling EUR/USD ER for the period until the swap facilities become operational and 149585th dollar devaluation begins. Also it would not surprise me at all if the swap facility is structured by offering no fixed duration of swaps, and no fixed rates. 

On another, more on topic, note given that nothing can keep the FX volatility down and nothing can re-inflate home values except outright publicly announced hyperinflation policy and or 0% interest rates NINJA loans for everything that has a pulse and is a carbon based life form [although not a make-or-brake requirement for getting the mortgage], expect more tax payer subsidies going to Fannie Mae and Freddie Mack in the upcoming months/years/decades. 

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