Treasury Is Close to Finalizing Plan to Backstop Fannie, Fre

[SeattleMoose]

Nice to see Free Market Capitalism at work here. The strong and viable survive while the weak and inefficient are purged from the market. Thank God we live in America, the bastion and chief cheer leader for Free Market Capitalism. This ad bought and paid for by Wall Street, Bushco, and the FED.

does not apply to the following:
Bear Stearns
Fannie Mae
Freddie Mac
BofA
Wamu
and other companies/institutions that are too big to obey the laws of Free Market Capitalism and whose CEOs will retains all bubble earnings while their companies are reinflated with taxpayer money.

But the rest of you.....TOW THE LINE OR ELSE!!!

[perfectfire]

I think Eleua's prediction was 60-80% declines, but since he is tagged as SB's resident nutball everyone quotes the higher loss estimate. I can easily see how this could happen. Prices will fall until monthly payments are less than rent. That would be around 40-60%. But keep in mind that rents will eventually fall some so it's a moving target. So now we get drops around 50-70%. Then throw in some higher mortgage rates we get drops around 60-80%. I see 40-60% declines as a certainty and further declines as very likely.

[rose-colored-coolaid]

[TJ_98370]

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Freddie / Fannie top executives win big as do those who shorted Freddie / Fannie stock. Everyone else loses.
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......Daniel H. Mudd, the departing head of Fannie Mae, stands to collect $9.3 million in severance pay, retirement benefits and deferred compensation, provided his dismissal is deemed to be "without cause," according to an analysis by the consulting firm James F. Reda & Associates. Mr. Mudd has already taken home $12.4 million in cash compensation and stock option gains since becoming chief executive in 2004, according to an analysis by Equilar, an executive pay research firm.
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Richard F. Syron, the departing chief executive of Freddie Mac, could receive an exit package of at least $14.1 million, largely because of a clause added to his employment contract in mid-July as his company's troubles deepened. He has taken home $17.1 million in pay and stock option gains since becoming chief executive in 2003.......
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