GLOBAL
REAL ESTATE MARKETS FORUM
4Rs:
Realty Reality
Recommended Reading
with
Editorial Comment
Regulators
May Oust Fannie Mae Management
by Marcy Gordon @
MoneyCentral.com
September 24, 2004
See Link
Balancing
Act
by Ross Guberman @
Washingtonian.com
September 24, 2004
See Link
Fannie
and Freddie were Lenders
US Real Estate Bubble Nears Its End
by Richard Freeman @
LaRouchePub.com
September 24, 2004
See Link
EDITOR'S COMMENTS by Ole Bear, Editor
I have been trying to figure out what everyone's been smoking since FIRREA 1989, and especially since 1995 when the GSEs really started changing the rules in the mortgage lending and realty valuation gig. Is it Panama Red or Acapulco Gold? It certainly hasn't been Jamaican Cigars, Marlboros, Camels, Winston Lights, or Pall Malls!
Editor's comments in [ ]
Author Gordon in Regulators May Oust is pretty candid in the essay. These phrases should scare the living daylights out of most folks with an IQ over 40, who are also warm and breathing [ehh, this also should scare the living daylights out of every present and past leader and EVP at the Appraisal Institute in Chicago as well, since they have never taken a stand against the banking cartel!]:
- immediate remedial action [as in something quick before you blow up?]
- accountability of management [brooms and skeletons in the closet?]
- second largest U. S. financial institution behind Citigroup Inc. [hey, weren't they bailed out before?]
- revised its employment agreements [private company or country club or fraternity?]
- inappropriate accounting policies [shades of Enron?]
- accounting at Fannie Mae were more serious, more complex and wider in scope than those at Freddie Mac [Gee Whiz!]
- second-biggest seller of securities behind the U. S. Treasury [i.e., too big to fall]
- ordered to decrease its financial leverage by raising fresh capital or buying fewer mortgages [capital from China or Japan?]
- improper "cookie jar" [Oreos Double Stuffed, Vanilla Wafers, Chips Ahoy? or Arthur Anderson?]
- "risk-to-the-government" rating [risk to the taxpayer rating?]
- a class action lawsuit on behalf of Fannie Mae shareholders [oooops! there goes the stock price!]
Knowing what I know about mortgage fraud, appraisal fraud, and the blood flowing on the streets of Central Missouri in the foreclosure racket, its amazing that folks are starting to understand the Reefer Madness that has provided the greatest real estate debt bubble in 400 years of economic history. It looks like folks are starting to wake up and smell both the coffee mixed with that funny Missouri Ditchweed in the air!
The other two essays by Authors Freeman and Guberman are from 2002, and some of my favorite reads. We bring 'em back to light here at Realty Reality, because this stuff at Fannie Mae has been going on for a very long time. Enron, Long Term Capital Management, or the Federal Re$erve playing the lender of last resort to the Big Boy financial houses on Wall Street as counter-parties to all those GSE derivatives? Take your pick.
© 2004 Realty Reality
