You’d thunk they’d see it coming??

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The US has done it this time–syndicated a global financial crisis through the export of sub-prime loans. But for all of Wall Street’s shamelessness and former Fed Chairman Greenspan’s chutzpah to counsel the US Congress to permit unbridled derivative contract sales so banks could “offload risk,” aren’t investors somewhat to blame? 

Fannie & Freddie, but what about Sister Ginnie?

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Fannie Mae reported a loss of $3.6 Billion on Wednesday for the fourth quarter of last year (2007). Freddie Mac, its smaller government sponsored brother today reported a $2.5 Billion loss for the same period. If not for a

Why is Ginnie Mae being ignored?

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One has to wonder why the silence on Ginnie Mae, the direct US government agency that guarantees mortgage pools for lenders with the full faith and CREDIT of the US.  Indeed GNMA securities, because of their direct US Government backing have increased in value while every other mortgage

NY Monoline Insurance Bail out remedy or fool’s gold?

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Stock markets gyrated from misery to euphoria when news broke that a proposed cash infusion into the monoline insurers, namely MBIA and Ambac, was being sought by New York Superintendent of Insurance Eric Dinallo.  At risk is an estimated $2.5 trillion worth of debt securities issued with guarantees by the insurers whose combined stock market value is less than $2.5 billion. Under the formula seriously floated, $5 billion would be […]

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