New Plan for Freddie / Fannie
July 16, 2008
found this fantastic video by reading this post in Noah Rosenblatt’s Urban Diggs blog (great blog about NYC real estate that I read quite a bit). Bill Ackman is proposing a new plan to solve the Freddy / Fannie problem and bring liquidity back to the market. This solution is not via a government bailout, but rather proposes a balance sheet restructuring (basically converting their debt to equity, in order to affect the crazy D/E ratio – currently at 129:1 – Yikes!!!). I am not going to rehash Noah’s post and the video – they both do a great job explaining it. Check it out!
Video: http://www.cnbc.com/id/15840232?video=793726867
Entry Filed under: General Real Estate, Mortgages, tough real estate market. Tags: credit crunch, fannie mae, freddie mac, liquidity crisis, mortgage, real estate.
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RonOrr.com | July 23, 2008 at 2:25 am
129:1 ratio that’s crazy, yes they need a solution
Hopefully they come up with a solution soon.