Today's news is that these two mortgage-backed institutions are in trouble.
$3 billion dollars in credit-related problems at Fannie Mae - mostly write-offs of bad loan losses. Sound like a lot?
Well, Fannie Mae has over $3 trillion dollars in loans. Does $3 billion sound like a lot now? The loan losses are not 1%, not even 1/10th of 1%. Fannie Mae and Freddie Mac currently state that they are not in trouble and have enough capital but Congress, the Treasury and the Fed will make a statement to be willing to shore them up - if needed.
The new need to stop this unbridaled fear in our credit markets is real. So I applaud them for that. The need to do something to stem this lack of confidence is real, yes, but the fear is not substantiated at all.
Please put these headlines in perspective when you come across them. $3 billion dollars to Fannie Mae is like $100 to a household income of $100,000.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.