Lunchtime Links 11-6

November 6, 2009

Fannie asks for another $15 billion (press release) That brings the company’s total draw on Treasury to $59.9 billion. Here’s the paragraph that scares me: “Total nonperforming loans in our guaranty book of business were $198.3 billion, compared with $171.0 billion on June 30, 2009, and $119.2 billion on December 31, 2008. The carrying value of our foreclosed properties was $7.3 billion, compared with $6.2 billion on June 30, 2009, and $6.6 billion on December 31, 2008.” Why is the value of nonperforming loans growing so much faster than foreclosures? If Fannie’s not going to foreclose, then why bother paying the mortgage?

Fannie owed $15.8 billion by Lehman (Fannie 10-q) see page 103.

With tax break, a bigger carbon footprint (Glaeser, Boston Globe) “The real problem with the [home buyer tax] credit is that it continues the long-standing federal push toward far-flung McMansions and away from dense, apartment living.” It’s not just about carbon consumption. It’s about encouraging the expansion of a footprint that our incomes can no longer support.

Goodbye to reforms of 2002 (Norris, NYT) Floyd chimes in on Sarbox.

Pre-retirees in denial on savings (CalculatedRisk) Future generations (including mine) will look back in wonder at the 20-year retirements that were typical through the 80s/90s/00s.

950th time is the charm for learner driver (Couzens, Sky News, ht Troy M) Is this multiple choice? Surely a monkey filling ovals at random would have managed the necessary 60% at some point. Nevermind that the questions can’t change all that often. A regular should figure out the right answers by a simple process of elimination…

Student stuns Iran by criticizing Ayatollah Khamenei to his face (Faramarzi, AP)

Anne Frank offends Hezbollah (Yazbeck, AFP) “Anne Frank’s diary has been censored out of a school textbook in Lebanon following a campaign by the militant group Hezbollah claiming the classic work promotes Zionism.”

Women’s college soccer? Or UFC? (ESPN) How did this girl not get red carded?

You know you’re a redneck when …. (imgur) Click to zoom in.

Comments

Sure, there’s some can kicking going on at Fannie, but Fannie is also selling inventory out of OREO at the same time that they’re making new foreclosures. OREO inventory is also booked at current appraised value, so if FNMA forecloses a $400,000 mortgage and appraises the house at $200,000 they charge off $200,000 and book $200,000 to OREO.

Also, in a lot of areas the courts are really backed up, so it’s taking a long time to get foreclosures through.

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