In Thursday's edition of The Motley Fool's everything-financials show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson tackle the top financial stories of the day.
Matt and David discuss the far-reaching implications of Fannie Mae and Freddie Mac, as well as some good housing news.
The price of becoming the world's greatest investor is that Warren Buffett can no longer make many of types of investments that made him rich in the first place. Find out about one such opportunity in "The Stock Buffett Wishes He Could Buy." The free report details a sector of the economy Buffett's heavily invested in right now and exactly why he can't buy one attractive company in that sector. Click here to keep reading.
Editor's note: In the above video, Matt refers to AGNC's CIO as Doug Kain. Mr. Kain's first name is Gary. The Fool regrets the error.
You can follow David and Matt on Twitter.
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Report this Comment On June 27, 2013, at 2:14 PM, infinitemf wrote:
What Would the World Look Like Without Fannie and Freddie?
Loan Sharks will take over and rule the mortgage world.
Report this Comment On June 27, 2013, at 2:19 PM, infinitemf wrote:
If FnF are wound down, all housing finance will be
taken over by loan sharks. After 2008 crisis individual home ownership
declined sharply and investor ownership increased. During housing boom
real estate investors made big money selling houses and after crash they bought
them back for pennies on dollar making double kill. If they are successful in winding down
FnF it will be triple kill and will be biggest of all. During crisis banks refused to trust
even other banks and stopped lending to each other. During future crisis, it will
be anybody's guess about what will happen to mortgage owners. During crisis FnF were the
only saviors (under FHFA management) to bail out these lenders by buying their
sub-prime mortgage loans.
Private sector has shown time and again that they can not be trusted to do right things without
proper regulations. It will be suicidal for national economy to entrust them with such a vital
economic function.
We should ask simple question:
Who are going to benefit by winding down FnF other than pesky ideologists and big investors?
It will bring out the hidden sinister truth.
Report this Comment On June 27, 2013, at 5:51 PM, Caludio wrote:
Price target of Fannie Mae by Dec $19.80
If you are a serious investor you should read six articles : 2 by Bryndon Fisher and 4 by
"user 12736991" Just Google " Bryndon Fisher"
and "user 12736991" , read this articles and you will have valueable information that can make a difference in your investment account.
Report this Comment On June 27, 2013, at 6:49 PM, notafool2013 wrote:
Fannie Mae going down -> interest rate going up -> mortgage cost going up -> house affordability going down -> house demand going down -> house price going down -> local economy going down -> local governments going down
Foreign investors with lots of cash will load up US properties. Angry local voters will take the revenge during the election.
Report this Comment On June 27, 2013, at 7:10 PM, infinitemf wrote:
Dear Matt Koppenheffer and David Hanson,
Please read the articles mentioned by Caludio.
I know you people have made up your mind.
But at least you know what others think.
Caludio:
if you are a serious investor you should read six articles : 2 by Bryndon Fisher and 4 by
"user 12736991" Just Google " Bryndon Fisher"
and "user 12736991" , read this articles and you will have valueable information that can make a difference in your investment account.
Report this Comment On June 28, 2013, at 7:31 AM, SPMike wrote:
after reading just the comments, i don't need to watch the video...in fact, i'm never going watch motley fool video over a printed article, so comments or not, if there is not a printed version of the video, i'm not going to watch it....in fact further, i think it's kind of like trickery to make us watch a video when we click onto a motley link that has only a video
Report this Comment On June 28, 2013, at 10:34 AM, Baileybldgnloan wrote:
POTTER
Peter Bailey was not a business man. That's what killed him. Oh,
I don't mean any disrespect to him, God rest his soul. He was a
man of high ideals,
so-called, but ideals without common sense can ruin this town.
(picking up papers from table)
Now, you take this loan here to Ernie Bishop . . . You know, that
fellow that sits around all day on his brains in his taxi. You
know . . . I happen to know the bank
turned down this loan, but he comes here and we're building him a
house worth five thousand dollars. Why?
George is at the door of the office, holding his coat and papers,
ready to leave.
GEORGE
Well, I handled that, Mr. Potter. You have all the papers there.
His salary, insurance. I can personally vouch for his character.
POTTER (sarcastically)
A friend of yours?
GEORGE
Yes, sir.
POTTER
You see, if you shoot pool with some employee here, you can come
and borrow money. What does that get us? A discontented, lazy
rabble instead of a
thrifty working class. And all because a few starry-eyed dreamers
like Peter Bailey stir them up and fill their heads with a lot of
impossible ideas. Now, I say . . .
George puts down his coat and comes around to the table, incensed
by what Potter is saying about his father.
GEORGE
Just a minute –– just a minute. Now, hold on, Mr. Potter. You're
right when you say my father was no business man. I know that.
Why he ever started
this cheap, penny-ante Building and Loan, I'll never know. But
neither you nor anybody else can say anything against his
character, because his whole life was . . .
Why, in the twenty-five years since he and Uncle Billy started
this thing, he never once thought of himself. Isn't that right,
Uncle Billy? He didn't save enough money
to send Harry to school, let alone me. But he did help a few
people get out of your slums, Mr. Potter. And what's wrong with
that? Why . . . Here, you're all
businessmen here. Doesn't it make them better citizens? Doesn't
it make them better customers? You . . . you said . . . What'd
you say just a minute ago? . . . They
had to wait and save their money before they even ought to think
of a decent home. Wait! Wait for what? Until their children grow
up and leave them? Until they're
so old and broken-down that they . . . Do you know how long it
takes a working man to save five thousand dollars? Just remember
this, Mr. Potter, that this rabble
you're talking about . . . they do most of the working and paying
and living and dying in this community. Well, is it too much to
have them work and pay and live and
die in a couple of decent rooms and a bath? Anyway, my father
didn't think so. People were human beings to him, but to you, a
warped, frustrated old man, they're
cattle. Well, in my book he died a much richer man than you'll
ever be!
POTTER
I'm not interested in your book. I'm talking about the Building
and Loan.
GEORGE
I know very well what you're talking about. You're talking about
something you can't get your fingers on, and it's galling you.
That's what you're talking
about, I know.
(to the Board)
Well, I've said too much. I . . . You're the Board here. You do
what you want with this thing. Just one thing more, though. This
town needs this measly one-horse
institution if only to have some place where people can come
without crawling to Potter. Come on, Uncle Billy!
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