Monday, March 13, 2006

Fannie Mae--More accounting errors!

I've touched on Fannie Mae's accounting problems several times in the past--here, here & here.

Unfortunately, most folks are still completely unaware of this GSE's massive problems, and are oblivious to the fact that if this company fails, it could lead to complete economic chaos... Allow me to try and sum up the issue in three small words: Government sponsored ENRON. If those three don't work, try these three: $1.5T of Debt .

Anyway, the reason I'm bringing up Fannie Mae again today is because Forbes has just released a new report: Fannie Mae announces new accounting errors and won't meet their deadline for filing their annual financial report (a 2nd straight year). This thing smells worse every time we sniff it...

Am I just paranoid or do others agree this thing could eventually explode?


Out at the peak said...

You have no idea how badly I want to buy put LEAPS on this baby. It's a gamble, but most of the market is risky anyway. At least it will give me some diversification away from the energy boom/bubble. ;-)

I don't know if you've ever played Geometry Wars, but there are blackholes that will continue to suck in opponents. If you allow it to consume too many, it will explode and a whole new class of opponents will come swarming for you. Symbolically, Fannie Mae is a blackhole IMHO. You want a good laser beam to defeat it. I've been playing too much XBOX 360, but its one of the few things to keep my mind off markets and work.

contrarian2day said...

Thanks Peak,
You got me to chuckle with this one.