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Post by crashuk on Dec 11, 2007 10:07:18 GMT -6
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Post by unlawflcombatnt on Dec 11, 2007 16:13:26 GMT -6
This is very informative article. Also interesting, is the $12 billion loss amount stated in the British press. Freddie Mac's losses are also discussed in the American press, but with out direct mention of a $12 billion loss. The parallel American article was posted today by member "bws" on this forum. The American article states the losses in separate passages, without adding them up. This makes the total loss much less obvious. The American article states the amounts as follows: " additional $5.5 billion to $7.5 billion over the next few years as the housing crisis worsens and home-loan defaults rise.
The government-sponsored company has already logged about $4.5 billion in projected losses during the first nine months of this year...." Certainly readers can add the totals together, which would make the total -$10 billion to -$12 billion. But stating them separately makes the losses seem smaller, since the total $12 billion loss is not as obvious, and does not appear in the article. I've seen subdividing of total losses many times in the American press. It's very typical of the American press's reporting style on financial losses. It's sad that we Americans have to go the British media to find the truth about our own country. Freedom of the press is supposed to result in honest, forthright reporting. Instead, it has resulted in deceptive, dishonest, and highly selective reporting. The "freedom to deceive and distort" has become Corporate media's policy. In contrast to the U.S.'s report, the BBC article includes the $12 billion amount in both the title, and in the text. Here are the passages from that article: " It now expects $10bn (£4.89bn) to $12bn in credit losses on its mortgage book, its chief executive told investors....
We would expect that our total future credit losses on our current book of business would total approximately between $10bn and $12bn, " Richard Syron, chief executive told investors. ...." I'll remember to check the BBC when something like this comes out in the future. " Freddie Mac was created in 1970 by the US government, but later privatised...." The above statement suggests that Freddie Mac was actually funded by the US government originally. I wasn't aware of this, if it's true. " Investors, however, rate its bonds as if they were still backed by a government guarantee." Because investors anticipate a tax-payer funded bail-out if Freddie gets in trouble. (And Freddie is already in trouble--meaning right now.)
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Post by jeffolie on Dec 11, 2007 18:26:54 GMT -6
The 2008 results for Freddie and Fannie are going to be horrible. I expect losses that will stagger these stocks.
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