Fannie Mae Announces $2.3 Billion Loss

Last year, profits of $1.97 billion. 

This year (so far) a net loss of  $2.3 billion. 

So, how bad is it going to get? 

As mortgage guarantors, Fannie Mae and Freddie Mac pay out when individuals default on their loans – and there has been a lot of that happening lately. 

Last month the federal government approved the financial bailout should Fannie Mae need it. They will need it and the taxpayers will be hit hard. 

Although Fannie Mae is now taking steps to correct the situation it is really too late. Here are two steps they are taking to try and right the ship… 

• Fannie Mae lowered their dividend payout by 85% 

• Fannie Mae will stop purchasing ‘Alt-A” loans (loans where people did not have to prove their income) 

Neither will help Fannie Mae currently and in any case, it will most likely cost the taxpayers $10 – 60 billion in what is already a tough economy. 

 

USS York

Was the USS York built with scrap steel from the World Trade Center’s twin towers? The answer is yes. 

I have received this one from several Slow Bleed readers. Most of them are wondering if this is indeed real so here you go. 

The ship was commissioned March 1, 2008. Here are a few stats as well as photos. 

• Bow stem includes seven and a half tons of steel recovered from the World Trade Center’s twin towers
• Construction with World Trade Center steel was encouraged by Governor George Pataki of New York and Mayor Michael Bloomberg of New York City
• Name given by then Secretary of the Navy Gordon England
• Keel was laid on August 2004
• 1,200 Louisiana workers stayed to keep building the ship after Hurricane Katrina hit the shipyard in August 2005
• Ship was christened at Northrop Grumman’s Avondale shipyard on March 1, 2008
• Motto: “Strength forged through sacrifice. Never forget.”