newyorker.com - 11/16/2008
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Mortgage financier Freddie Mac, which is now majority-controlled by the federal government, reported a $25.3 billion loss in its most recent quarter, and said it would be asking the government for $14 billion to keep its business going. Understanding the economics of Freddie Mac and Fannie Mae ...
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Sunday links: risk is on sale
Abnormal Returns —
... debt for sale that yields will rise, merely based on supply and demand.” (naked capitalism)
“I think we can say that TARP has become a bad private equity fund, whose purpose is to buy preferred stock on overly generous terms..in order to shore up banks and bank-like institutions…” (The Baseline Scenario)
Now that’s an earnings miss. (The Balance Sheet, Dealbreaker) ...
Why Does Anyone Rely on Estimates?
EconomPic —
... third-quarter loss came to $19.44 a share, far larger than the $1.2 billion, or $2.07 a share it lost in the year-earlier period. Much of that loss came from a $14 billion non-cash charge to write down the value of tax credits it had built up. Doubts about the ability of the company to make money in the future and utilize those tax credits caused that charge.With all the troubles in the market, analysts surely saw this coming right? As James Surowiecki points out at the New Yorker: They were “looking for a loss of 89 cents ...
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The Economist: Full print edition 11/13/2008
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