Lots in the shuffle yesterday was a day end request by Freddie Mac (FRE) of $10.6B in bailout funds. [Sep 7, 2008: Bailout Nation Continues - Fannie/Freddie Now Owned by You] Fannie Mae (FNM) should have its hands out in the next few days. $10 billion used to actually mean something, now it is not even worthwhile of being part of the headline news.
- Freddie Mac (FRE), the second-largest provider of U.S. residential mortgage funds, on Wednesday asked for an additional $10.6 billion in federal aid after it lost $8 billion in the first quarter.
- The new request will bring the total tab for rescuing Freddie Mac to $61.3 billion.
- The company warned it would continue to need billions more in government funds because the housing market remains fragile.
No surprise now, as these firms are essentially being run for loss to help misrepresent free market prices in home values.
Just add it to the tab and let the hockey stick default rates continue. [Feb 1, 2010: 2 Graphs Showing Part of the Reason for the Christmas Eve Taxpayer Massacre] Remember as of Christmas Eve (perfect timing for the news cycle) the US taxpayer in on the hook for unlimited monies for the next 3 years to make sure FranFredron are happy campers. Why? Because Tim Geithner said so. [Jan 5, 2010: WSJ - The Treasury Department's Christmas Eve Masscare of the US Taxpayer]
Of course reform for Fannie, Freddie is nowhere to be found in any financial regulation. [Feb 9, 2010: WSJ - No Exit in Sight for US as Fannie, Freddie Flail]
- Treasury Secretary Timothy Geithner has said he does not expect any substantive changes to the system until next year at the earliest. (kick the can Tim)
To show you how socialized the US housing market has become, data last week showed that the 4 main entities (Fannie, Freddie, FHA, VA) have upped their share from an already astounding 90% of mortgages last year to just under 95% in Q1 2010.