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FREDDIE PICTURE, ROUNDUP

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check out the picture - FREDDIE MAC: Spending as if they had a good year - The Big Picture

Mortgage Market Roundup - lots of downgrades, and Garrett-Watts mentioned … thanks PJ - housingwire

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LIQUIDITY PLAN,  2005 SAFE? , HOUSINGWIRE 2, CHART, FEAR BAROMETER, 2 FROM IRA

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The Fed’s Liquidity Plan:

1. Victor Hong weighs in (thanks V) - Discount window pawn chart here …   Holy Cow! In hopes of re-inflating the market for housing-related securities, the Federal Reserve will repo-finance “AAA” ABS CDO tranches for at least 85:00, and perhaps up to 98:00 —- far more than their realizable general market values. This liquidity initiative should be termed the “Brooklyn Bridge Buy-out”. …. Why sell your super-senior tranches for so little, when you can fund them for much more? As one soon-to-default property lender once quipped, “A dollar borrowed is a dollar earned.”

2. The Fed’s Collateral Requirements: It’ll Take Anything - by Felix Salmon - portfolio.com  

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Another thought from Victor - thought 2005 vintage deals were safe? … Please note the recent downgrade of some WFMBS 2005 fixed-rate and adjustable-rate RMBS deals. …. An ugly cocktail of sub-5CPR prepayments and sharp housing depreciation threatens even seasoned Prime non-agency CMO deals, especially because of their very thin subordination.

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2 articles from housingwire - thanks PJ

1. 18 of 20 Major U.S. Housing Markets Saw Price Declines in November: Report - … jointly published by housing analysis and research firms