Freddie Mac hits up Treasury for another chilly 30b….

Friday night news drop…if we can’t get the frakin HOLC we need to get out of this housing morass when we already own Fannie and Freddie and are still pumping billions into them..well, then why even bother with a stimulus, just go to Clan of the Cave Bear economic models….


CNBC via AP:

Mortgage finance company Freddie Mac said Friday it will need an additional $30 billion to $35 billion in government aid as it copes with losses on loans the company backed during the U.S. housing bubble.


It comes on top of the $13.8 billion the company received last year after it was seized by the government. Sibling company Fannie Mae has yet to request any such aid but has warned it may need to do so.

Federal regulators seized control of both companies in September after they faced mounting losses from the housing market’s bust. An agreement with the Treasury Department allows the government to invest up to $100 billion in each company…


We need the frakin HOLC and we need it like a year ago….

More dithering on what to do, what to do, while property values continue to decline at an accelerated pace, signaling the need for an intervention to all but the blind banks who are fighting a losing battle…let’s just put on our Darryl Hannah makeup and be done with it…

Congressional Dems are going all “mau mau on CBO for scoring the stimulus unfavorably” (Kudlow video fascinating debate on the stimulus tonight with Dean Baker here)…they are having it rescored….the markets (and MiM) expected PEBO team to hit the ground running with a plan …for weeks we have seen them gathering in a gaggle of genius….but nothing until February 20th….no signal to the markets for cap gains or dividend treatment in 2010…nada…hand me the black eyeliner….


The banks have gotten themselves into this mess and sadly taken all of us down with them…In fact, their obstinacy in modifying mortgages will result in a bigger hit for them as Dems legislate bankruptcy cramdowns of mortgages….if they expect continued recapitalization form this Congress I hope to hexx they are ready to write off some principal on these loans for underwater homeowners…in CA, FL NV and AZ…a-hem…

The Obama administration last week said it would “commit substantial resources of $50-$100 billion to a sweeping effort to address the foreclosure crisis,” through a variety of initiatives, including the TARP program, whose funding thus far has gone entirely to propping up banks.

Depending on whom you ask, that’s either way too much money or far too little.

“I think it’s too much. What would you do with it?” says Christopher Mayer, a real estate expert and vice dean at Columbia University’s business school, who recently testified before the House Financial Services Committee’s hearing on using TARP funding for foreclosure relief.

“A $100 billion is not a lot, given what the federal government is on the hook for,” says Edward Pinto, who was chief credit officer at Fannie Mae and now runs a consultancy. “The meter is running and it is going to increase.”

Pinto estimates foreclosure losses could be as high as $800 billion over the next 4-5 years.

Many plans, but finally someone is forcing action, and Frank has Maxine Waters D-CA who was burned by Paulson and Kashkari on TARP One at the lead with legislation to force the implementation of Sheila Bair’s FDIC model, via CNBC:

“Mortgage loan modifications have been an area of intense interest and discussion for more than a year now,” FDIC COO John F. Bovenzi recently told Congress. “Meanwhile, despite the many programs introduced to address the problem, it continues to get worse.”


In addition there is no shortage of new proposals, from government loan guarantees or outright purchases of mortgages to dramatic changes in bankruptcy laws to incorporate home foreclosure.


The “Systematic Foreclosure Prevention and Mortgage Modification Act of 2009” would seek to modify 2.2 million mortgages, about half of the non-GSE loans expected to become a problem in 2009. Under the plan, the government would share up to 50-percent of the loss, if the loan redefaults.

January 23, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Entertainment, FDIC, Film, Finance, Foreclosures, Hillary Clinton, Housing, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 2 comments.

Ode to Caroline Kennedy on her not winning the NYS Senate seat…

Since Caro’s peeps are running about flailing wildly at any excuse for her not getting the seat, and dragging Gov Paterson through the mud to do so..well Caroline needs to get off the stage now…

this says it all for us, and it comes to us from the beautiful people of NY, Farmingdale specifically:

courtesy of 2007 upload by TheApeMan73:

Vince Neil doing a great version of the Motley Crue hit ‘Don’t Go Away Mad (Just go away)’. Great show at a great place – Crazy Donkey is THE place to see a show on Long Island – great room with great sound.

January 23, 2009. Tags: , , , , . Music, Politics, Popular Culture. Comments off.

Blago Presser at 3:00pm EST…

Yes the Byronic Blago is Back!!

FOX will cover it LIVE


This morning in a 45 minute radio interview Governor Blagojevich indicated that ultimately at some point, he wants to call witnesses in his defense including Rahm Emanuel and Valerie Jarrett as well as JJ Jr…since he plans to boycott the Senate Impeachment perhaps that will ultimately happen in a criminal trial, should he be impeached…

You KNOW they are gritting their teeth in the WH…

From the Chicago Sun-Times:

The governor’s radio appearance kicked off what’s expected to be a media blitz that could include appearances on national news networks within the next several days. Blagojevich signaled he has no plans to show up in Springfield on Monday for the start of his impeachment trial if the rules don’t change.

The wide-ranging interview touched on everything from his profanity-laced tirades that were secretly recorded by the FBI (“I apologize for some of the profanity, but had I known they were listening I wouldn’t have used those words,” he said.) to his mental state (“I feel my mental state’s where it’s always been. You can judge whether or not that’s a good place or a bad place.”) to whether he feels betrayed by his friends and other Democratic politicians (“This experience is an experience in the human condition in a highly pressurized environment with big stakes involved. . . . There are several elements in an experience like this that’s painful and very unfortunate.”)…


Blagojevich reiterated statements he made yesterday that rules governing his trial are unfair and that he would like to call several witnesses to defend him, including White House Chief of Staff Rahm Emanuel and President Obama’s senior adviser Valerie Jarrett. He also said he’d like to call U.S. Rep Jesse Jackson Jr. (D-Ill.) and even U.S. senators Edward Kennedy (D-Mass.) and John McCain (R-Arizona), who he says had worked closely with him.

“Just let me bring my witnesses in to show people, and to have them under oath testify before the Senate, that I have not done anything wrong, and I’ve done most things right,” the governor said. “If they just give me a chance to bring witnesses, I’ll be there first thing Monday morning.”…

…”I think the fix is in,” he said “They’ve even put in a date where the trial is going to end. How can you do that if you’re going to be fair?…He also said, “I can be soldier in the fight for constitutional rights.”

the presser should be fascinating, Blago always is, I look forward to more poetry from the ‘soldier in the fight for constitutional rights’…Blago is taking no prisoners in interviews if this is any indication:

…On Mayor Daley, Cook County Board President Todd Stroger and House Speaker Michael Madigan (D-Chicago): The governor said raising cash for his campaign fund “was important because I knew from the beginning . . . that if I was going to be in a position to take them all on . . . then I needed to be in a position politically where I could afford . . . afford to say to Mayor Daley and Mike Madigan No, I’m not Todd Stroger. I’m not going to raise the sales tax because you guys have a bunch of precinct captains in county government. No, sorry, I’m not going to raise the income tax because the city of Chicago gets a portion of that and that would be unfair and burdening working people.”More on Stroger: “I’ll tell you why there’s a lot of business leaving Cook County. It’s because of Todd Stroger’s sales tax increase.”…

January 23, 2009. Tags: , , , , , , , , , . Obama Administration, Politics. Comments off.

Breaking: Kirsten Gillibrand is the New Jr Senator of NY!!! Thank you Gov Paterson!!!!

Here they come! It’s her it’s her!! WOOHOO!!!!!!!!

Al D’Amato is on the stage I am going to take a wild leap and hit publish now it must be Kirsten!!!…


Rep. Gillibrand and Hillary in 2006

Governor Paterson just made the announcement!!

covered by FOX LIVE here, the noon presser…here is a lady we need for this seat!!!! Have we mentioned this is the candidate Hillary supported for the job? And you KNOW how we at MiM love moderates, a Blue Dawg Dem is Gillibrand… :0) And we think it is just AWESOME that Rep. Gillibrand has a brand new baby, LOVE it when a mom gets promoted. Children are NOT a bar to a successful career and Governor Paterson knows it! Rep. Gillibrand is the only NY Dem who voted against the 700b TARP boondoggle FYI, not easily pressured is Gillbrand. :0)

Please thank Governor Paterson if you are in NYS:

David A. Paterson
State Capitol
Albany, NY 12224


email the Governor here

January 23, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Labor Department, Politics, Unemployment Statistics, Wall St. 1 comment.

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