S&P Lowers Fannie, Freddie Citing Reliance on Government

S&P Lowers Fannie, Freddie Citing Reliance on Government

www.bloomberg.com

Standard & Poor’s lowered credit ratings on debt issued by U.S.-backed lenders including mortgage giants Fannie Mae and Freddie Mac, citing its own Aug. 5 downgrade of the federal government’s AAA status.

Fannie Mae and Freddie Mac, which own or guarantee more than half of the almost $11 trillion in outstanding U.S. mortgage debt, were lowered one step from AAA to AA+, S&P said in a statement today. The downgrade reflects their “direct reliance on the U.S. government,” the ratings firm said.

(visit the link for the full news article)

So, the trickle down credit markdowns begin. I am sure they will mark down everything directly tied to the US government. If it is funded directly through the US it will probably be downgraded in the coming days.
This will just fuel the fire of the declining markets as things keep losing AAA status that means that most hedge funds, as well as mutual funds will no longer be able to hold them. Looks like this situation is far from over.

www.bloomberg.com
(visit the link for the full news article)

Laughable. I bet the hardened criminals are opening up their composition notebooks and taking notes from these goons. I'm sure they must all be beating themselves up for being such petty criminals. I bet they wish they could trade their gang threads for Gucci suits and gator boots.

Not surprising. However, we should probably make sure we take care of these two mistakes while we come up with another third party lender.......