I'm speechless. Here's a snip:
"Given that they have $4.5 trillion of risk out there, $100 BILLION is a drop in the bucket,” Miller said. “Given the fact that their risk profile on these loans is greater than they led everyone to believe, greater than $100 billion in losses on each institution would not surprise me.”
He's talking about both Phoney and Fraudie above. For now, only Fraudie is requesting additional funds. And again for the record: Fraudie already received $14 BILLION from your kids in november. So they are back to the trough quickly. Fannie's going to need at least $100 BILLION before this is over. Another snip:
“Their losses are going to be much higher than anyone anticipated,” said Paul Miller, an analyst with FBR Capital Markets in Arlington, Virginia. “The more and more that people are digging into these portfolios, they’re finding out the more and more these guys were doing subprime and Alt-A loans and classifying them as prime.”
"Much Higher than anyone anticipated." Are you kidding me. I am so tired of hearing that. Trust me, there are thousands of people who anticipated it. The online forums, from the basic at marketwatch and yahoo, to silicon investor and investor's hub, and finally to the blog forums at calculated risk, naked capitalism, the big picture and many others, are full of people who DID anticipate everything we saw last year. Once Bear Stearns failed in March, it became clear to us that no one else was any different than Bear and so they would all suffer the same fate eventually. After all, they all owned the same type of assets and at near the same levels of leverage. What was NOT anticipated, however, was the level of government intervention that would be utilized in an attempt to save them.
So, talk to your kids tonight and ask their permision to give another $35 BILLION of their money away to Fraudie. Oh, and start laying the groundwork for the big talk with them. No, not the one about sex and drugs. The one about Phoney needing perhaps $100 BILLION pretty soon. Let me know what they say, and then we'll let Obama and Geithner know whether they may have OUR CHILDREN'S FUTURE.
Inside, you will also find today's second set of bailout links.