Global Financial Risk Management leader, M·CAM, Explains Fannie Mae and Freddie Mac intervention consequences

Date:  Tue, 2008-09-09

Global Financial Risk Management leader, M·CAM, Explains Fannie Mae and Freddie Mac intervention consequences

TAI Alert: 16 – The Next Step in the Unwinding of the Economy

Berkeley Springs, WV − September 9, 2008 −−Yesterdays allegations of US regulator intervention with Freddie and Fannie were reported to be necessary to avert a worsening of the credit market instability. Traders on all the major exchanges alleged to have seen this intervention as a positive indicator of the global financial markets. However, consistent with Dr. David Martin’s scenarios/reports (click on each date for corresponding report), July 2006, November 2007, December 2007, May/July 2008, a greater threat now looms, further destabilizing the global financial markets.

In the last 52 weeks these mortgage industry giants have lost a collective $161 Billion in investor value (Freddie Mac $59.7 B, Fannie May $101.2 B) affecting over 1,500 mutual funds and over 1,300 institutional and capital investors (e.g. banks and insurance companies). A woeful inadequacy on the part of the federal government is the failure to report to the American people and the global markets the actual consequences of the market capital erosion which has already adversely impacted pension funds, retirement funds, insurance and bank liquidity reserves and international sovereign investments. Similar to the Nixon administration’s removal of the Gold Standard, based on international liquidity demands, the erosion of this market value has both economic and political consequence as international investments in these corporations now have significant altered capital stability around the world.