U.S. Economy May Avoid Recession: Freddie Mac

Darla said:
That's an average, what the article says is that everyone will be paying large percentage increases. 28% to be exact.
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my point is even with oil i can heat 2400sf for 2K.

Poor people dont live in a 2400sf apartment.

so if thats the average. something is screwed up here.
 
Jarod said:
Ive really done well with my GM over the past month. I was going to call it a day, sell and leave well enough alone, because of the strike. But I am glad I did not... Up big again today. I have a 20% gain from when I bought.
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People are betting that the company won this one. They were striking for job security, instead they got a trust fund for retirees....

Methinks they got distracted.
 
uscitizen said:
Yep and they all have chain saws and such. The elderly really love to saw and split up wood. Helps the old stroke out a lot.
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well they could do coal or wood pellets. and as you see in my earlier post i said those physically able.
 
Chapdog said:
my point is even with oil i can heat 2400sf for 2K.

Poor people dont live in a 2400sf apartment.

so if thats the average. something is screwed up here.
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where do you live? that sounds pretty cheap.
heating oil was 2.69/gal or so here last winter....
 
uscitizen said:
where do you live? that sounds pretty cheap.
heating oil was 2.69/gal or so here last winter....
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Massachusetts. so even at 2.69 how much oil u going to burn lol? people with money troubles should be wearing clothing in there house and using blankets. I would burn probably 1000 gallons in a cold winter and be warm in my house. not even turning it off and thats excessive.
 
1000 gal is 2,690 at 2.69/gal I think...or somewhere there abouts.
Add at a minimum 28% to that for this winter...
 
We use Propane, not oil, out here. And mine went down by more than half because I got a new efficient heater. It would be more expensive now to burn wood.
 
im not arguing its more money this year. im arguing the point of it being some huge negative. And making point that you dont have to pay for it if you have a house and can do work.

i save like 2K per winter or more.
 
I also use propane. and have reduced my bill by well over half with a new furnace and insulation. But that cost several thousand dollars up front....
The poor seem to have problems coming up with several thousand dollars for some strange reason.
 
Damocles said:
We use Propane, not oil, out here. And mine went down by more than half because I got a new efficient heater. It would be more expensive now to burn wood.
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Thats awesome. Wood is what i have for now but would love that.

are we the only people that don't pay for expensive heating?
 
Chapdog said:
Thats awesome. Wood is what i have for now but would love that.

are we the only people that don't pay for expensive heating?
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It appears so. Last year, with my new efficient heater, I filled the propane tank just before October, then didn't refill until after May. The guy stopped by in December, but I had used less than half the tank....

I was thrilled. Best money I had spent in a long time.
 
i use to heat my home. i put in basement next to garage and it heats my entire basement and garage trickles up to the first floor and second floor. no oil need be on in winter at all. fill it up in the morning. when get home from work, and before bed. its a machine. .like an oil furnace not ment for enjoyment.

got 2 fireplaces for enjoyment upstairs i use once in awhile.
 
Topspin said:
U.S. Economy May Avoid Recession: Freddie Mac
Topics:Subprime Lending * Economy (U.S.) * Mortgages * Stock Picks * Stock Market * Corporate Restructuring * Corporate Fraud * Corporate Governance * Corporate News * CEOs and CFOs
Companies:Fannie Mae * Freddie Mac * CompaniesBy Reuters * 26 Sep 2007 * 05:55 AM ET Font size: Freddie Mac, the No. 2 U.S. mortgage financing company, does not expect the economy to fall into recession from the housing market downturn and even sees opportunities in the shake-up, its treasurer said on Wednesday.

Timothy Bitsberger told Reuters in an interview that he expects the housing market troubles, sparked by the spike in defaults on subprime mortgages, will hamper the pace of U.S. growth but should not lead to a sustained contraction.

"The economy will definitely weaken and slow down somewhat, but we are not forecasting a recession," Bitsberger said, adding that low unemployment, a strong global economy and solid corporate profitability will help underpin growth.

Bitsberger said Freddie Mac Freddie MacFRE
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[FRE 59.53 --- UNCH (0%) ] is well positioned to take advantage of the credit market turbulence of the past few months, such as regaining some pricing power in buying assets.

"I would characterise our position as exceptionally strong," said Bitsberger, who is visiting Tokyo, Hong Kong and Beijing in a regular trip to the region. "The competitive landscape is changing in our favour."

Calls have grown from lawmakers to give Freddie Mac and its sister company Fannie Mae Fannie MaeFNM
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[FNM 61.68 --- UNCH (0%) ] more leeway in providing funding to the housing market, such as lifting caps on the size of their mortgage portfolios and letting the firms temporarily buy large-sized housing loans of more than $417,000.

The federal regulator of Freddie Mac and Fannie Mae has already eased some restrictions on their portfolios and has said it may lift the portfolio caps as soon as February.

Freddie Mac has suffered no losses yet on its small holdings of subprime securities but has had to set aside more reserves against potential write-downs on its nearly $2 trillion mortgage portfolio as the housing market has swooned.

The housing market troubles were highlighted by data on Tuesday showing existing home sales in August were the slowest in five years and inventories of unsold homes and condos soared to the highest since records of the combined inventory data began in 1999.

The housing crisis and ripple effects leading to the credit market crunch prompted the Federal Reserve to slash short-term rates by 50 basis points last week, and more monetary easing is expected to stem the fallout on the economy.

Freddie Mac and Fannie Mae fund their purchases and holdings of mortgages by selling bonds whose credit quality is seen as close to that of U.S. Treasuries.

Freddie and Fannie compete with major banks and companies like Countrywide Financial, the largest U.S. mortgage lender, which has taken a hit in the housing crisis.

Bitsberger said investors in Asia remained keen to buy the agency bonds of Freddie Mac. Asian investors including central banks with swelling stocks of dollar reserves typically buy about 30 to 40% of new Freddie Mac bond issues, including at a five-year note sale earlier this month.

He also said the dollar's slide to a 15-year low on a trade-weighted basis and a record low against the euro was not deterring Asian investors from agency bonds.

"I don't see that a weaker dollar means lower U.S. debt investment," he said.
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Mark Zandi, the head economist at Economy.com, spoke to our officer last week. He stated he had raised his prognosis to a 40% chance of recession. However he then went on to argue that he feels we won't end up in a recession and the economy will find itself back on solid footing.

We're not sure if the economy has fully absorbed the credit crunch however it probably hasn't. In commercial real estate we're seeing "pre credit crunch" pricing and "post credit crunch" pricing. The overall attitude is we will get through this.
 
I think a lot of economist and investors would agree with 40 percent which is certainly up but still leaving 60 percent no recession
China will help prevent it
 
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