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According to a report from the New York Post, an undisclosed sovereign wealth fund has allocated $29 billion to begin purchasing foreclosed homes along the West Coast. American home values and the dollar are both plummeting in value, attracting foreign oil money to invest in the nation’s houses. Abu Dhabi, known for its recent purchases of the Chrysler and GM Buildings, is preparing to announce next month what failing American real estate it will soon invest in.
America is defenseless against foreign takeovers of realty and big business as long as it remains addicted to oil.
All told, one household in every 464 received a foreclosure notice. Among the areas hardest hit by foreclosure notices was Fort Myers, Florida; one in every 64 households there received a default notice in July alone.
Nevada was hardest hit by foreclosure, followed by California, Florida, Ohio, Georgia, Michigan, Colorado, Utah and Virginia. All of these states used to be known for their stable markets and high home values, but now they are suffering from the worst housing market in over 70 years.
The U.S. Treasury is growing increasingly likely to recapitalize Fannie Mae and Freddie Mac in the months ahead on the taxpayer's dime.…
Such a move could wipe out existing holders of the agencies' common stock, with preferred shareholders and even holders of the two entities' $19 billion of subordinated debt also suffering losses.…
If the government-sponsored enterprises fail to raise fresh capital, the administration is likely to mount its own recapitalization, with Treasury infusing taxpayer money into the agencies.
A government report issued Tuesday showed that builders broke ground on the fewest number of homes since March 1991, marking a 17 year low. The 11 percent decrease puts the annual rate of new homes built at 965,000, far below the 1.084 million pace set in June. Work began on 30 percent fewer homes than in July 2007.
Another troubling sign is the fact that building permits - a sign of builder confidence - fell 17 percent as well.
The hardest hit area appears to be the Northeast, where homebuilding is down 30 percent.
Fannie Mae and Freddie Mac are now nearly worthless, having each lost nearly 90 percent of their value in the last year alone. Fannie Mae shares dropped to just $3.75 on Thursday; Freddie Mac shares bottomed at one point at $2.68. A government bailout is now all but certain, and the possibility that the two federally-sponsored giants will be dismantled and sold for scrap is now a serious concern, according to Reuters.
Originally posted by marg6043
reply to post by Relentless
[article on Freddy Mac]
Relentless may be this the reason things has been slowing down in you case.
PAULSON SAID the government wasn't going to bail out speculators.
YOU LIED TO CONGRESS AND TO THE AMERICAN PEOPLE PAULSON; the biggest speculators of all are in the corner offices of Fannie Mae and Freddie Mac, along with the bondholders who purchased their debt, and now you want to bail both of them out!
Nor does it end there. An article in The Economist points out that a large percentage of the debt allegedly "sold" in recent auctions wasn't sold at all - it was part of an elaborate scheme known as a "switch":
Here is the mathematical reality of the situation folks.
The GSEs took on many hundred billion in "ALT-A" paper, representing about 10% of their total. That's $300 billion roughly, for Fannie.
This paper is garbage. It was not purchased due to any "affordable housing mandate", but rather to "lever up" as the GSEs have been doing for the last few years.
Originally posted by Relentless
More info on the Bill itself, that I from here on in. refuse to refer to as a "housing Bailout" because it is nothing of the sort.
Why do I have to pay for a Bill that was suppossed to bailout people and now are bailing out worthless institutions?