Enron will pale nothing in comparison

http://www.usatoday.com/money/companies/management/2003-06-09-freddie_x.htm

If the attached link turns out to be another Enron we are seriously #ucked.

Imagine taking 40% of the mortgages of all US homeowners. Then putting all those mortgages into uniform bonds for anyone to buy. Banks sell their mortgages to Freddie Mac and Fannie Mae to unwind from interest rate risk and so they can make new loans. The credit quality of these instruments is almost on par with US Bonds.

We are talking TRILLIONS here. I am unable to exaggerate the potential impact of this.

SNL fiasco? Oh, those were much better days compared what this may allude to.

 

I worked for one of many corporations that profited outrageously from the creation of an entirely new temporary Federal Bureaucracy (Resolution Trust Corp) as a result of the savings and loan disaster. It was a great thing - it helped pull the economy out of the early '90s recession. Instead of having the government hand out money to non-productive parasites, the money went to corporations that provided goods and services and JOBS.

If Freddie Mac is really imploding, then let's do the usual hatchet job on the alleged ringleaders, then start the Money Train!

 

What do you say now?

Earnings for 200,2001, and 2002 were restated...UPWARDS!

 

Re: What do you say now?

They say one thing, and they do another.

What they did was FIRE the CEO and others in his circle. That is what they DID. Why did they do that? That is very interesting.

Why is there now congressional interest in opening hearings and redesigning the regulatory mechanism of these companies?

Why are actions being taken to hedge against worst case scenario accounting scandals?

Was it tax evasion? Were they HIDING revenue and income from taxation, and thus came clean and restated upwards. Will there now be fines imposed that will completely wash out any upward restatements.

I am more interested in the reason the ACTION was to FIRE the CEO, than I am the triviality they SAY they actually earned more.

It's why NASDAQ collapsed. Most companies reported REVENUE, and not NET INCOME.

Listen to what they do, and not what they say