Eat Your Share
And act like you like it.
“Fannie Mae and Freddie Mac may force lenders including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. to buy back $21 billion of home loans this year as part of a crackdown on faulty mortgages.”
Heeheehee, sob. I dunno whether to laugh or to cry.
“JPMorgan said in a presentation last month that it loses about 50 cents on the dollar for every loan it has to buy back.”
So,: US Govt owns 79.9% of Fannie and Freddie and is paying tens of billions every quarter to keep em afloat. So its a good thing right, that F&F gets some money back from the crooked banks ?
Not so fast, look again. The Federal Reserve is monetizing the banks, and get this, this is the good part: any loss the Fed takes is an obligation of the US Treasury
so.. we are moving money from one pocket to another…and i think there is a hole in both. Because falling real estate is worth far less than the notes already, and because the banks are getting slammed by rising default and rising loss severity on all asset classes. US taxpayers unto the third generation hence will pay. Like I said, eat your share.
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Circles of Debt
