As of 2:48 PM EST, Fannie Mae (OTCBB:FNMA) is trading up by around 23.64%, while the Freddie Mac (OTCBB:FMCC) is trading up by around 23.94%. The buying spree on the mortgage companies come as a result of a New York Times article, accusing the US Department of Justice (DoJ) of not making around 150,000 pages of documents public.
We know its not Paulson, Ackman, or SAC; is it Dalio's Bridgewater? No, the world's most profitable private entity that is in business to generate profits via speculation in financial markets is, drum roll please, the Federal Reserve. Stone & McCarthy (SMRA) estimates the Fed will make around $90bn profits in 2012. Of this around $87.5bn will be remitted to the US Treasury - a new record high (quite helpful when one is trying to avoid a debt ceiling using 'extraordinary measures' though we assume this is already penciled in due to its consistency).
The year 2008 was full of nasty surprises. One of the biggest was the government takeover of twin mortgage giants Federal National Mortgage Association (FNMA, or Fannie Mae) and Federal Housing Lending Mortgage Corporation (FHLMC, or Freddie Mac).
A key player in the financial crisis was insurance giant AIG, which sold a huge volume of credit default swaps supposedly protecting buyers of mortgage-backed securities from losses due to default. But AIG had nowhere near the capital necessary to honor these guarantees when things went bad, and much of AIG's liabilities ended up being picked up by the Fed and the Treasury. On Tuesday the U.S.
This story was funny. The Federal Reserve plans to "Twist" its balance sheet.Translating into English, the Federal Reserve plans to sell some short term Treasury debt and buy longer term Treasury debt. They will still keep the Fed Funds Rate at 0%-0.25%.What's the point? Who benefits? Duh! I'm not even going to bother with spoiler space.
(WASHINGTON) — U.S. employers advertised slightly more jobs in May and hired more workers, further signs of steady improvement in the job market. The Labor Department said Tuesday that job openings rose 28,000 to 3.83 million in May from April. That’s close to February’s 3.9 million, which was the highest in five years. A measure of overall hiring increased 46,000 to 4.4 million. That’s still lower than a year ago. The job market remains competitive, despite stronger hiring this year. There are nearly 3.1 unemployed, on average, for each open job.