05/11/2010
Good morning guys today it’s May 11th, 2010, this is your Jeff Coga with your whenever randomness….
Let’s get to it…
You know just yesterday Fannie Mae and Freddie Mac had some guys (ok, some are chicks) who are supposed to look out for our interest… debated about financial reform on the Senate floor. Now I want each and every one of you to consider that little fact.
Think about this… we are in a time since the greatest economic global slowdown since the Great Depression. The U.S. housing market is at the center of the storm. The GSEs (the fake a$s quasi government), being Fannie Mae and Freddie Mac are by far the greatest influences and impacting agencies to the U.S. housing market and there’s talk of NO regulation or better said a lack of talk of no regulation.
HmmHMMM…. Really, ask yourselves, how is that even possible?
Just yesterday, Fannie Mae asked for an additional $8.4 billion to stay afloat and Freddie Mac also has recently asked for $10.6 billion, I mean that’s $19 billion on the running tab of $145 billion.
The numbers are so big, but you kind of become numb to those things. Oh yea… we did have like $700 billion back in
hmmmmm…. Jeff Coga says is BS
Ok, think about this, Fannie bought 62,000 foreclosed homes in the first quarter of 2010. Last year’s total acquisitions were 145,000 homes, so at their current rate, they’ll acquire 250,000 homes. That’s over 100,000 more homes than the previous year.
Follow me on this guys….. So the government is fronting Fannie Mae and Freddie Mac money to buy all the non-performing loans. I mean last year, and very quietly, the Treasury stated they’ll do whatever it takes to keep these guys afloat. That’s your basic open checkbook. Now they’re taking advantage of the Treasury’s generosity by buying all these bad loans, so my thinking is the government is going to continue using the GSEs to buy foreclosures and once biz isn’t so good, they’ll disband them completely.
The reason financial reform may lack oversight of Fannie Mae and Freddie is simple. Because they won’t even exist anymore going forward!!!! (Just MHO) And if you don’t believe me, you simply need to look at some of the most recent statements made from our most influential Congress people.
Okay, so yesterday we told you that CoreLogic is suing Zillow over copyright infringements on their AVM model, remember that? Right, yes. Brian: Right, listen to this, Zillow just came out and said that homes with negative equity rose in the first quarter of 2010. Core Logic just came out and said that homes with negative equity fell in the first quarter of 2010.
Well, things either got better or they got worse depending on who you believe, but I imagine things just got better for Zillow because there’s no way they’re going to lose a lawsuit over an AVM model to Core Logic if they’re reaching completely opposite conclusions. This lawsuit is dead in the water, guys
Core Logic – Negative equity Declines
Zillow Negative equity grows
Hmmmmm…..
What’s not in question, though, is the number of foreclosures. They’re up and they’re up big according to Realty Trac, Bank Repo’s rose 35% in the first quarter to a record 257,944 units. You know, those aren’t units if they think about it, 257,944 homes, those are displaced families over a 3 month period.
Truly amazing, but it’s also a quarter million available properties to sell, right. I mean, listen, someone’s gonna live in all those homes. The market’s already washed away a ton of your competition and this is a real big opportunity to liquidate properties and get us on a road to recovery, man.
Just truly amazing….
“When a bridge collapses… they never look at the last truck on the bridge but the engineer who built it…”
JC
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