Crunching into 2009
Meredith Whitney, a person who literally became a superstar by predicting a dividend cut by Citigroup, is more bearish on banks than over.
She says that the Wall street estimates are 72% and 37% above a realistic expectation for 2008 and 2009 respectively.
Keep in mind, she DID build her career out of this.
Why not Save peoples Ass?
The Federal Housing Admin has passed a bill which allows them to insure these risky home loans.
However, this plan will seemingly cost Fannie Mae and Freddie Mac few hundred million dollars a year - forcing them to make the payment to subsidize the cost of running the insurance program.
So, when does imposing such huge ass burden on individual companies get too risky? Hard to tell, but at few hundred million dollars per year.... I am not sure what the effect will be.
The FHA is, of course, stating that they have found enough funding. They need about 1 billion dollars - most of it is going to come from FM & FM but others will also come from "raising cost of borrowing for homeborowers and lenders."
Hmmmm
Source:
http://www.nytimes.com/2008/05/21/business/21fannie.html?partner=rssnyt&emc=rss
Moody's in Trouble
Computer errors to blame for handing out so many AAA's? Says Moody.
Hmm.... where have I heard that before?
The computer error did most of its work before 2007 - and when they discovered it in 2007, they didn't fix any of the ratings that it gave.
That means there are milions of triple AAA floating around... for no good reason.
COMPUTER GLITCH - c'mon are you shitting me?
Pfizer's poison
This isn't strictly finance related, but Pfizer's anti-smoking drug, Chantix, is known to cause ALL sorts of shit in your body. Read for hte full list.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aY7AqdjMpHas&refer=home
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