Sunday, July 27, 2008
Friday, July 25, 2008
DENVER IS ON THE RISE!
Denver is 1 of Only 12 of the nations 50 Metropolitan areas have a low risk of price declines, according to the PMI Mortgage Insurance companys Winter 2008 Market Risk index. This index is based on the 3rd quarter Office of Federal Housing Oversight data, and ranks the 50 largest metropolitan areas according to the likelihood in price declines. 12 of these metropolitan areas have a 1% or less risk of price declines. Denver is one of the twelve low risk areas. Areas that had the highest price run-ups in recent years are at highest risk of price deterioration.
Watch the full story here!
http://www.brokeriptv.com/denver-ofheo-lowest-price-devaluation-nation
Watch the full story here!
http://www.brokeriptv.com/denver-ofheo-lowest-price-devaluation-nation
Saturday, July 19, 2008
Moving With Your Pets
If pets are a part of your family, remember that moving, whether down the block or across the country, is just as stressful for them as it is for you. But this stress can be greatly reduced with good planning and the tips that you'll find here. "Animals can sense and react to stress just like people," says Dr. William Fortney, a veterinarian at Kansas State University. "Anything we can do to make it easier on them can make recovering from the move easier on us." Here are some suggestions from top veterinarians, zoo experts and experienced pet owners on how to minimize the stress of moving with pets. Read the general guidelines, then check out the specific pets that make up your family's menagerie:
1- General Guidelines
2- Cats
3- Dogs
4- Birds
5- Fish
6- Reptiles (including snakes, turtles, iguanas, and other lizards)
7- Small Mammals (like mice, gerbils, guinea pigs, and hamsters)
8- Pet Rocks
9- Gorillas (how NOT to move one)
GENERAL GUIDELINES
Keep your pets' routines as regular as possible as you prepare to move. If you normally feed, exercise or play with them at a certain time, continue to do so. During the final crunch of moving, you may find it works best to keep your pet either at a friend's house or a kennel, reducing the chance of your pet getting upset and running away, or in the case of cats, hiding in a box about to be shipped.
Keep some form of identification on the pet at all times and be sure you have current pictures along with a written description available. This will reduce a lot of stress should your pet escape. If the length of the move requires the animal be provided with food and water, be sure the food is bland and easily digested and that the water comes from your home supply. Changing diet or water sources are common causes of diarrhea and vomiting from upset stomachs. If in doubt, check with your veterinarian for food recommendations.
Prior to moving, schedule a visit with your veterinarian for a thorough physical exam, making sure all vaccinations are current, especially the rabies vaccination. While at your veterinarian's office, get copies of your pets' records and check to see if he can recommend another veterinarian at your new location. You can also call the American Animal Hospital Association (AAHA) at (800) 883-6301 for the names of AAHA veterinarians near your new home.
If your pet is on any medication be sure to have an ample supply so you won't run out before getting settled in your new location. Also discuss with your veterinarian whether your pet should be tranquilized during the move. If so, get enough to try it out prior to the move to be sure the dosage works properly.
Since each state has different laws and regulations regarding the importation of animals and some counties and municipalities have their own ordinances, check with a veterinarian in the new area to be sure your pet complies. It is important to do this several weeks before your move to allow time for all paper work to be completed.
Temperature extremes should be avoided. In most cases, it's best to transport your animal in a sturdy, insulated carrier to help regulate the changing temperature. Never leave a pet in a hot car during the summer time or a cold car in the winter.
If you are transporting the pet by plane, try to book a direct flight to minimize the time the animal may be sitting outside the plane in inclement weather conditions. Some airlines provide counter-to-counter service so your pet will be carried on and off the plane by an airline employee. While this service costs a little more, it may be worth it for your peace of mind.
CATS
Cats are notorious for getting into trouble during the moving process since they are particularly sensitive to stress. "Stress for a cat involves three things," says animal behaviorist and psychologist, John Wright, author of Is Your Cat Crazy? "It involves reaction to novelty -- cats don't like novelty. They like sameness. It involves reaction to unpredictability -- cats don't like events to be unpredictable. The third thing is the degree of control-- cats don't like to be out of control. When you move, you have a high degree of all three, until things settle down."
For these reasons it is particularly important to maintain your cat's normal routine. During the move itself, keep your cat confined to one room with food, water, a litter pan, some favorite toys, and the carrier you plan to use so your cat can get used to it. The door should be locked or have a large, "Do Not Open" sign on it, so the movers won't inadvertently let the "cat out of the bag."
Transport your cat in a well constructed cat carrier large enough to have room for food, water and a small litter box. Upon arrival at your destination, place the cat and carrier in one secure room with at least two doors between the cat and the outside. Open the door of the carrier and let the cat decide when to come out. Allow your cat to become acclimated to the one room before releasing him to the rest of the house. If the cat scurries for cover when you open the door, wait a day or two longer, then try again. Let the cat explore other rooms of the house when it meets you at the door.
If your cat is accustomed to going outdoors, wait several days after arriving at your new home before letting the cat out, placing him on a leash or harness for short exploratory trips. After 2 or 3 days of these trips, you can begin to let your cat out on its own.
DOGS
Dogs are generally easier to move than cats since they aren't as affected by the stress. A few special considerations to keep in mind include being prepared to clean up after your dog at rest stops. Carry a roll of paper towels and disposable plastic bags. Place a piece of paper towel over the solid matter, and your hand in one of the plastic bags. Pick up the towel and solid matter and pull the bag down over your hand and towel, turning it inside out. Then, twist, seal and dispose.
If you have a small dog and plan on flying to your new home, he may be able to fly with you in the passenger compartment if he is small enough to fit into a carry-on bag that will fit under the seat. Check with the airlines for details. If you are transporting a larger dog by plane, try to book a direct flight to prevent your pet from having to spend long periods in a distant airport, and have someone scheduled to pick up your dog at the other end.
Never leave any pet in the car for more than a few minutes. This is especially important during warm weather. If you are carrying your dog with you in the car and plan to stop overnight, be sure to call ahead to find a hotel that accepts pets.
BIRDS
Birds need a health certificate to enter most states and depending on the species may be required to have tests done for certain diseases. Since these regulations can change, it is important that your present veterinarian verify these requirements well in advance of your moving.
If you will be taking your bird in the car, maintain a warm, constant temperature since birds are particularly sensitive to temperature changes. It is possible to carry the bird in its cage as long as you have a cover for it to prevent drafts and keep the bird in a darkened setting to reduce the bird's anxiety. If you have an excitable bird, it may be necessary to cushion the cage or crate with a soft material to reduce self-inflicted trauma.
Place slices of apple, grapes or other fruit in the cage to supplement the bird's water supply and be sure they have adequate places to perch.
FISH
If you have a small number of fish and are moving only a short distance, you can move them to their new location by using plastic bags half filled with water and the other half with air. Place the bags in an insulated container such as an ice chest or Styrofoam container to help maintain a steady temperature.
For a larger number of fish or for transporting over a greater distance, 5-10 gallon plastic containers can be used. First, fill them with water (either salt or fresh water, depending on the type of fish) and change the water often to remove any toxins that might leach from the plastic. On moving day fill the containers half full with water and place the fish in the water, about 1-2 fish per gallon.
If your trip is going to take more than a couple of days, it's best to invest in some portable aerators to keep the water well oxygenated. Do not keep the containers in the car overnight since the drop in temperature is likely to be too severe.
REPTILES
If you are going to ship a venomous snake, it must be placed inside two sturdy boxes or a box inside a wooden crate. With non-venomous ones only one box is needed. Be sure the containers are well insulated and contain air holes for ventilation and are clearly marked with both the common and scientific name of the species.
If you are transporting your snake in your car, be sure not to leave it in the car overnight. Take it into the hotel room (be sure they allow pets), and let it soak for about an hour in the tub. (You will have to take turns.)
The easiest pet to move is a turtle, which can be overnight expressed in a well cushioned, insulated box with air holes.
American Tortoise Rescue (http://www.tortoise.com), a nonprofit organization founded to provide for the rescue of turtles and tortoises, recommends using overnight mail. Be sure to write "Fragile, Live Cargo" and "this side up" on the outside of the box to increase the chances of a softer ride. You can also place leaves or grass inside the container for added cushion and to give the box a more homey environment.
Remember to keep the surroundings of all reptiles moist but not wet. Dampening a cloth and placing it inside the container is the best approach.
Since there are some governmental regulations regarding the shipment of reptiles, consult with A Fieldguide to Reptiles and the Law by J. P. Levell. (published by Serpent's Tale)
SMALL MAMMALS
The best way to move small mammals such as mice, gerbils, guinea pigs and hamsters are to keep them in the car with you and in their normal container. Take their water bottle out to avoid it leaking and soaking the bedding. At rest stops, check the animal and place the bottle back in the cage so it can drink.
Be sure to maintain a comfortable, steady temperature even if it means parking your car away from the rest rooms to get it under the shade of a tree. These little critters are comfortable at about the same temperatures people are so if you are cold or hot, they are too.
PET ROCKS
Probably the only pet easier to move than a turtle. Be careful to not let your pet rock out of its box while you are driving the car. It's simply too easy for them to cause an accident by slipping under your gas or brake pedal.
GORILLAS (How NOT to Move One)
On October 16, 1996, travel plans for the people on Delta Flight 709 were delayed when one of the passengers became upset during a stopover in Salt Lake City. The passenger, a 490-pound gorilla, named Vip, had been traveling for over 12 hours in the cargo hold. Having endured a stopover in Cincinnati and a change of planes in Salt Lake City on his way from Boston to his new home in Seattle, Vip expressed his exasperation by rattling his reinforced aluminum cage, resulting in a "rather loud" noise. "It just turned into a long day," said Brian Rutledge of Boston's Franklin Park Zoo, where Vip had lived. "And when you weigh 490 pounds, you can let people know you've had enough." He was unloaded in Salt Lake City where he spent the night in Hogle Zoo before continuing on to Seattle on the ground.
THE END
1- General Guidelines
2- Cats
3- Dogs
4- Birds
5- Fish
6- Reptiles (including snakes, turtles, iguanas, and other lizards)
7- Small Mammals (like mice, gerbils, guinea pigs, and hamsters)
8- Pet Rocks
9- Gorillas (how NOT to move one)
GENERAL GUIDELINES
Keep your pets' routines as regular as possible as you prepare to move. If you normally feed, exercise or play with them at a certain time, continue to do so. During the final crunch of moving, you may find it works best to keep your pet either at a friend's house or a kennel, reducing the chance of your pet getting upset and running away, or in the case of cats, hiding in a box about to be shipped.
Keep some form of identification on the pet at all times and be sure you have current pictures along with a written description available. This will reduce a lot of stress should your pet escape. If the length of the move requires the animal be provided with food and water, be sure the food is bland and easily digested and that the water comes from your home supply. Changing diet or water sources are common causes of diarrhea and vomiting from upset stomachs. If in doubt, check with your veterinarian for food recommendations.
Prior to moving, schedule a visit with your veterinarian for a thorough physical exam, making sure all vaccinations are current, especially the rabies vaccination. While at your veterinarian's office, get copies of your pets' records and check to see if he can recommend another veterinarian at your new location. You can also call the American Animal Hospital Association (AAHA) at (800) 883-6301 for the names of AAHA veterinarians near your new home.
If your pet is on any medication be sure to have an ample supply so you won't run out before getting settled in your new location. Also discuss with your veterinarian whether your pet should be tranquilized during the move. If so, get enough to try it out prior to the move to be sure the dosage works properly.
Since each state has different laws and regulations regarding the importation of animals and some counties and municipalities have their own ordinances, check with a veterinarian in the new area to be sure your pet complies. It is important to do this several weeks before your move to allow time for all paper work to be completed.
Temperature extremes should be avoided. In most cases, it's best to transport your animal in a sturdy, insulated carrier to help regulate the changing temperature. Never leave a pet in a hot car during the summer time or a cold car in the winter.
If you are transporting the pet by plane, try to book a direct flight to minimize the time the animal may be sitting outside the plane in inclement weather conditions. Some airlines provide counter-to-counter service so your pet will be carried on and off the plane by an airline employee. While this service costs a little more, it may be worth it for your peace of mind.
CATS
Cats are notorious for getting into trouble during the moving process since they are particularly sensitive to stress. "Stress for a cat involves three things," says animal behaviorist and psychologist, John Wright, author of Is Your Cat Crazy? "It involves reaction to novelty -- cats don't like novelty. They like sameness. It involves reaction to unpredictability -- cats don't like events to be unpredictable. The third thing is the degree of control-- cats don't like to be out of control. When you move, you have a high degree of all three, until things settle down."
For these reasons it is particularly important to maintain your cat's normal routine. During the move itself, keep your cat confined to one room with food, water, a litter pan, some favorite toys, and the carrier you plan to use so your cat can get used to it. The door should be locked or have a large, "Do Not Open" sign on it, so the movers won't inadvertently let the "cat out of the bag."
Transport your cat in a well constructed cat carrier large enough to have room for food, water and a small litter box. Upon arrival at your destination, place the cat and carrier in one secure room with at least two doors between the cat and the outside. Open the door of the carrier and let the cat decide when to come out. Allow your cat to become acclimated to the one room before releasing him to the rest of the house. If the cat scurries for cover when you open the door, wait a day or two longer, then try again. Let the cat explore other rooms of the house when it meets you at the door.
If your cat is accustomed to going outdoors, wait several days after arriving at your new home before letting the cat out, placing him on a leash or harness for short exploratory trips. After 2 or 3 days of these trips, you can begin to let your cat out on its own.
DOGS
Dogs are generally easier to move than cats since they aren't as affected by the stress. A few special considerations to keep in mind include being prepared to clean up after your dog at rest stops. Carry a roll of paper towels and disposable plastic bags. Place a piece of paper towel over the solid matter, and your hand in one of the plastic bags. Pick up the towel and solid matter and pull the bag down over your hand and towel, turning it inside out. Then, twist, seal and dispose.
If you have a small dog and plan on flying to your new home, he may be able to fly with you in the passenger compartment if he is small enough to fit into a carry-on bag that will fit under the seat. Check with the airlines for details. If you are transporting a larger dog by plane, try to book a direct flight to prevent your pet from having to spend long periods in a distant airport, and have someone scheduled to pick up your dog at the other end.
Never leave any pet in the car for more than a few minutes. This is especially important during warm weather. If you are carrying your dog with you in the car and plan to stop overnight, be sure to call ahead to find a hotel that accepts pets.
BIRDS
Birds need a health certificate to enter most states and depending on the species may be required to have tests done for certain diseases. Since these regulations can change, it is important that your present veterinarian verify these requirements well in advance of your moving.
If you will be taking your bird in the car, maintain a warm, constant temperature since birds are particularly sensitive to temperature changes. It is possible to carry the bird in its cage as long as you have a cover for it to prevent drafts and keep the bird in a darkened setting to reduce the bird's anxiety. If you have an excitable bird, it may be necessary to cushion the cage or crate with a soft material to reduce self-inflicted trauma.
Place slices of apple, grapes or other fruit in the cage to supplement the bird's water supply and be sure they have adequate places to perch.
FISH
If you have a small number of fish and are moving only a short distance, you can move them to their new location by using plastic bags half filled with water and the other half with air. Place the bags in an insulated container such as an ice chest or Styrofoam container to help maintain a steady temperature.
For a larger number of fish or for transporting over a greater distance, 5-10 gallon plastic containers can be used. First, fill them with water (either salt or fresh water, depending on the type of fish) and change the water often to remove any toxins that might leach from the plastic. On moving day fill the containers half full with water and place the fish in the water, about 1-2 fish per gallon.
If your trip is going to take more than a couple of days, it's best to invest in some portable aerators to keep the water well oxygenated. Do not keep the containers in the car overnight since the drop in temperature is likely to be too severe.
REPTILES
If you are going to ship a venomous snake, it must be placed inside two sturdy boxes or a box inside a wooden crate. With non-venomous ones only one box is needed. Be sure the containers are well insulated and contain air holes for ventilation and are clearly marked with both the common and scientific name of the species.
If you are transporting your snake in your car, be sure not to leave it in the car overnight. Take it into the hotel room (be sure they allow pets), and let it soak for about an hour in the tub. (You will have to take turns.)
The easiest pet to move is a turtle, which can be overnight expressed in a well cushioned, insulated box with air holes.
American Tortoise Rescue (http://www.tortoise.com), a nonprofit organization founded to provide for the rescue of turtles and tortoises, recommends using overnight mail. Be sure to write "Fragile, Live Cargo" and "this side up" on the outside of the box to increase the chances of a softer ride. You can also place leaves or grass inside the container for added cushion and to give the box a more homey environment.
Remember to keep the surroundings of all reptiles moist but not wet. Dampening a cloth and placing it inside the container is the best approach.
Since there are some governmental regulations regarding the shipment of reptiles, consult with A Fieldguide to Reptiles and the Law by J. P. Levell. (published by Serpent's Tale)
SMALL MAMMALS
The best way to move small mammals such as mice, gerbils, guinea pigs and hamsters are to keep them in the car with you and in their normal container. Take their water bottle out to avoid it leaking and soaking the bedding. At rest stops, check the animal and place the bottle back in the cage so it can drink.
Be sure to maintain a comfortable, steady temperature even if it means parking your car away from the rest rooms to get it under the shade of a tree. These little critters are comfortable at about the same temperatures people are so if you are cold or hot, they are too.
PET ROCKS
Probably the only pet easier to move than a turtle. Be careful to not let your pet rock out of its box while you are driving the car. It's simply too easy for them to cause an accident by slipping under your gas or brake pedal.
GORILLAS (How NOT to Move One)
On October 16, 1996, travel plans for the people on Delta Flight 709 were delayed when one of the passengers became upset during a stopover in Salt Lake City. The passenger, a 490-pound gorilla, named Vip, had been traveling for over 12 hours in the cargo hold. Having endured a stopover in Cincinnati and a change of planes in Salt Lake City on his way from Boston to his new home in Seattle, Vip expressed his exasperation by rattling his reinforced aluminum cage, resulting in a "rather loud" noise. "It just turned into a long day," said Brian Rutledge of Boston's Franklin Park Zoo, where Vip had lived. "And when you weigh 490 pounds, you can let people know you've had enough." He was unloaded in Salt Lake City where he spent the night in Hogle Zoo before continuing on to Seattle on the ground.
THE END
Thursday, July 17, 2008
Monday, July 14, 2008
My Computer dies ( or was it killed)
It was a tough day at work, a typical Monday you would expect. Nothing going right and what could go wrong did go wrong. The fact is it's over now and Tuesdays are always so much better.
Sunday, July 13, 2008
Lovely Highlands Ranch Home
Address:2735 CANYON CREST DRIVE
Property Type:RESIDENTIAL
Price:$619,900
Listing #:676891
Status:ACTIVE
Backup/First:
Area:DOUG/HIGH/LONETR
Parcel ID#:680613304008
County:DOUGLAS
Type:DETACH SINGL FAM
Sub Area:LANTERN HILLS
City:HIGHLANDS RANCH
Style:TWO STORY
Architecture:TRADITIONAL
Zip:80126
Faces:EAST
Construction:FRAME
Year Built:2001
NS Direction:OUT OF AREA
#:0
Roofing Material:COMPOSITION SHGL
Builder:
EW Direction:OUT OF AREA
#:0
Car Storage:GARAGE,ATTACHED
Model:
Map/Section:405 - J
Car Spaces:3
Lot Size:9147
HOA Name:
School District:DOUGLAS
Acres:0.00
HOA Phone:
Elementary:7195,SUMMIT VIEW
Zoned:RR1
Total HOA Fees:121
Jr High/Middle:7345,MOUNTAIN RIDGE
Unincorporated:
Fee Quoted:QUARTERLY
Multiple HOAs:
Sr High:7545,MOUNTAIN VISTA
Taxes:4,111
Fee Includes:CLUBHSE W/FITNES
Horses:
TOTAL
UPPER
MAIN
LOWER
BASEMENT
Bedrooms
4
3
1
Baths
4
FF
H
F
Square Feet
3569
1134
Finished Sq Ft Total:4423
Total Sq Ft:4703
Date Measured:
Basement:PARTIAL,WALK-OUT
Bsmt Finished:PARTIALLY
%Bsmt Finished:75
Master Bedroom:
UPPER LEVEL
Living Room:
Water:
PUBLIC
Family Room:
MAIN LEVEL
Dining Room:
Sewer:
PUBLIC
Study/Den:
MAIN LEVEL
Kitchen:
Laundry Loc:
Heat:
GAS,FORCED AIR
# Of Fireplaces:
3
Average Utility:$
Fireplace Loc:
FAMILY ROOM,MASTER BEDROOM
Subfloor:
Description: AIR COND-CENTRAL,BACKS TO OPEN SP,CABLE AVAILABLE,COOK TOP,COMPACTOR,DOUBLE OVEN,DECK,DRYER,DISPOSAL,DISHWASHER,EATING SPACE/KIT,FORMAL DINING,FENCE,GARAGE DR OPENER,KITCHEN ISLAND,LOFT,LANDSCAPED PROF, MASTER BATHROOM,MICROWAVE OVEN,MASTER SUITE,REFRIGERATOR,SMOKE FREE,WASHER,WALK-IN CLOSETS
Public Remarks:BEAUTIFUL FAMILY HOME. BACKS TO OPEN SPACE. CHERRY CABINETS, MASTER SUITE W/ BAR AND FIREPLACE. LOTS OF PRIVATE SPACE, LOFT AND SEPERATE OFFICE, FABULOUS WALK OUT BASEMEN , GAS FIRE PIT IN BACK YARD, THIS HOME IS A MUST SEE!!
Listing Office:EXIT REALTY DENVER TECH CENTER
Portions of this document include intellectual property of ESRI and Metrolist, Inc. and are used herein under license. © 1998-2008 Environmental Systems Research Institute, Inc. and Metrolist, Inc. All rights reserved. All information is subject to change and should be independently verified.
Saturday, July 12, 2008
WHAT NOW?
Fannie and Freddie: A wild rideBy Chris Isidore, CNNMoney.com senior writer
NEW YORK (CNNMoney.com) -- The anxiety over Fannie Mae and Freddie Mac, crucial to a recovery of the battered housing market and the economy as a whole, took stocks on a wild ride Friday.
An early selloff was fanned by speculation of a looming government bailout. The stocks recovered on assurances by a leading senator that no rescue is needed and a report that said the Federal Reserve is opening up its discount window to Fannie and Freddie.
Immediately after the markets opened, shares of Fannie and Freddie fell more than 47% from their already battered closing price the day before.
But with about a half hour left in the day, shares of Fannie were down 24% and Freddie's stock was down about 10%.
Shares of both companies started their recovery shortly after 2 p.m. when Sen. Christopher Dodd, D-Conn., the chairman of the Senate Banking Committee, defended the strength of both firms.
Dodd said his discussions with Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson, the regulators who oversee the firms and the two companies' CEOs convinced him they have more than adequate capital and that there was no need to even discuss failure or a bailout.
He also vowed quick passage of a long-debated housing bill to give greater oversight of the two companies, saying he expected it to passed and ready to be signed into law sometime next week.
"There is a sort of a panic going on," he said. "The facts don't warrant that reaction in my view. Fannie Mae and Freddie Mac were never bottom feeders in the residential mortgage markets. People ought to feel confident about them."
Shares of Freddie even moved briefly higher Friday afternoon following a report from wire service Reuters that said Bernanke had told Freddie Mac CEO Richard Syron that Freddie and Fannie would be eligible to borrow money directly from the central bank through what is known as the discount window.
The discount window is a source of funds that traditionally was only available to commercial banks. But after the Fed engineered the purchase of Wall Street firm Bear Stearns in March, it opened the window to investment banks as well.
The Fed was not immediately available for comment about the Reuters report. Freddie issued a statement that did not address the report but the company reiterated it had adequate capital.
"Freddie Mac has held a substantial stabilizing presence in ...the housing market and will continue to support the market and the nation's homebuyers during this time of turbulence," said the statement. "The fact is that it was circumstances such as those we are seeing today for which Congress created Freddie Mac and Fannie Mae."
A Fannie spokesman said Friday morning that the company had no comment about recent reports. But it issued a statement Thursday saying that it had the necessary capital to continue operating
The problems for Freddie and Fannie weighed on broader markets, causing a sell-off in U.S. stocks, especially hitting major banks, Wall Street firms and home builders.
Crucial to home market
Fannie and Freddie hold or back $5 trillion between them, or about half the mortgage debt in the country.
They play a central role in the U.S. housing market, providing a crucial source of funding for banks and other home lenders, especially since a credit market crisis last summer left them the only major players in packaging pools of mortgage loans into securities for sale to investors.
If they were unable to do so, it would significantly raise the cost and restrict the availability of mortgage loans, causing significantly more problems for already battered housing prices and sales. That in turn would be another significant problem for the overall U.S. economy, as well as global credit markets.
The New York Times reported Friday that senior Bush administration officials are considering a plan to have the government take over one or both of the companies if their problems worsen.
The shares started to erase early losses when word came that Treasury Secretary Henry Paulson was set to speak. He said that the government's primary focus is making sure that mortgage giants Fannie Mae and Freddie Mac remain as presently constituted to carry out their mission.
Even before the latest report on a possible rescue plan, speculation about the future of the firms this week sparked a run by investors away from their shares. That in turn raised questions about how difficult and expensive it will be for them to raise needed capital in the future, which fed into the stock plunge in a vicious cycle.
In the first four trading days of the week, the shares of Fannie have lost 30% of their value, while Freddie shares have tumbled 45%. For the year, Fannie is down 67% and Freddie 77%.
"Fannie Mae and Freddie Mac have lost investor confidence evidenced by the rapid brutal sell-off in their stocks, which could dramatically hinder their ability to raise any additional capital going forward," wrote Richard Hofmann of research firm CreditSights in a note Friday. He added that the firms' ability to function normally "remain at the core of government efforts to stabilize the mortgage markets."
A number of scenarios were being discussed by bankers and analysts about what the government may do to deal with investors' current crisis of confidence in the firms.
Jaret Seiberg, a financial services analyst for the Stanford Group, a Washington research firm, said Thursday options that among the options are: The Federal Reserve could purchase some of the Freddie and Fannie debt or mortgage-backed securities; the Treasury Department could make billions of dollars in loans to the companies or even buy stock in the companies.
"Government officials are always planning for worst-case scenarios and our note is intended to highlight some options that may be available to policymakers," he wrote. "We suspect hybrid versions of these plans also are possible."
Under current law, the Office of Federal Housing Enterprise Oversight (OFHEO), the regulator of Fannie and Freddie, could take control of the firms if their capital falls too far below required levels. It is unclear how the firms would operate in that situation, known as a conservatorship.
OFHEO Director James Lockhart issued a statement late Thursday saying that his agency was closely monitoring the firms' credit and capital positions. But he pointed out that they had already raised $20 billion in capital and that they adequately capitalized, holding funds well in excess of his agency's requirements.
Investor panic
Still investors were worried that continued problems in the housing market would cause more than the $12.7 billion losses the two firms have lost between them since last July. The decline in their stock value makes raising additional capital to cover those future losses that much more expensive and difficult.
"Our primary concern about Freddie and Fannie is that credit losses are likely to be worse than the management's current judgment, which will further pressure the capital base, and we remain cautious until we are better able to quantify these risks," wrote UBS analyst Eric Wasserstrom in a note Thursday.
Those concerns prompted him to raise his estimated loss for Freddie and to cut his price target for the stock, although, he retained his neutral rating on both firms, rather than urging clients to sell their holdings.
But the biggest concern Fannie and Freddie shareholders faced Friday was what would happen if the government did have to step into rescue them. Certainly, the big selloff earlier in the day reflected some investor fears that shares of Fannie and Freddie could become worthless in a bailout scenario.
NEW YORK (CNNMoney.com) -- The anxiety over Fannie Mae and Freddie Mac, crucial to a recovery of the battered housing market and the economy as a whole, took stocks on a wild ride Friday.
An early selloff was fanned by speculation of a looming government bailout. The stocks recovered on assurances by a leading senator that no rescue is needed and a report that said the Federal Reserve is opening up its discount window to Fannie and Freddie.
Immediately after the markets opened, shares of Fannie and Freddie fell more than 47% from their already battered closing price the day before.
But with about a half hour left in the day, shares of Fannie were down 24% and Freddie's stock was down about 10%.
Shares of both companies started their recovery shortly after 2 p.m. when Sen. Christopher Dodd, D-Conn., the chairman of the Senate Banking Committee, defended the strength of both firms.
Dodd said his discussions with Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson, the regulators who oversee the firms and the two companies' CEOs convinced him they have more than adequate capital and that there was no need to even discuss failure or a bailout.
He also vowed quick passage of a long-debated housing bill to give greater oversight of the two companies, saying he expected it to passed and ready to be signed into law sometime next week.
"There is a sort of a panic going on," he said. "The facts don't warrant that reaction in my view. Fannie Mae and Freddie Mac were never bottom feeders in the residential mortgage markets. People ought to feel confident about them."
Shares of Freddie even moved briefly higher Friday afternoon following a report from wire service Reuters that said Bernanke had told Freddie Mac CEO Richard Syron that Freddie and Fannie would be eligible to borrow money directly from the central bank through what is known as the discount window.
The discount window is a source of funds that traditionally was only available to commercial banks. But after the Fed engineered the purchase of Wall Street firm Bear Stearns in March, it opened the window to investment banks as well.
The Fed was not immediately available for comment about the Reuters report. Freddie issued a statement that did not address the report but the company reiterated it had adequate capital.
"Freddie Mac has held a substantial stabilizing presence in ...the housing market and will continue to support the market and the nation's homebuyers during this time of turbulence," said the statement. "The fact is that it was circumstances such as those we are seeing today for which Congress created Freddie Mac and Fannie Mae."
A Fannie spokesman said Friday morning that the company had no comment about recent reports. But it issued a statement Thursday saying that it had the necessary capital to continue operating
The problems for Freddie and Fannie weighed on broader markets, causing a sell-off in U.S. stocks, especially hitting major banks, Wall Street firms and home builders.
Crucial to home market
Fannie and Freddie hold or back $5 trillion between them, or about half the mortgage debt in the country.
They play a central role in the U.S. housing market, providing a crucial source of funding for banks and other home lenders, especially since a credit market crisis last summer left them the only major players in packaging pools of mortgage loans into securities for sale to investors.
If they were unable to do so, it would significantly raise the cost and restrict the availability of mortgage loans, causing significantly more problems for already battered housing prices and sales. That in turn would be another significant problem for the overall U.S. economy, as well as global credit markets.
The New York Times reported Friday that senior Bush administration officials are considering a plan to have the government take over one or both of the companies if their problems worsen.
The shares started to erase early losses when word came that Treasury Secretary Henry Paulson was set to speak. He said that the government's primary focus is making sure that mortgage giants Fannie Mae and Freddie Mac remain as presently constituted to carry out their mission.
Even before the latest report on a possible rescue plan, speculation about the future of the firms this week sparked a run by investors away from their shares. That in turn raised questions about how difficult and expensive it will be for them to raise needed capital in the future, which fed into the stock plunge in a vicious cycle.
In the first four trading days of the week, the shares of Fannie have lost 30% of their value, while Freddie shares have tumbled 45%. For the year, Fannie is down 67% and Freddie 77%.
"Fannie Mae and Freddie Mac have lost investor confidence evidenced by the rapid brutal sell-off in their stocks, which could dramatically hinder their ability to raise any additional capital going forward," wrote Richard Hofmann of research firm CreditSights in a note Friday. He added that the firms' ability to function normally "remain at the core of government efforts to stabilize the mortgage markets."
A number of scenarios were being discussed by bankers and analysts about what the government may do to deal with investors' current crisis of confidence in the firms.
Jaret Seiberg, a financial services analyst for the Stanford Group, a Washington research firm, said Thursday options that among the options are: The Federal Reserve could purchase some of the Freddie and Fannie debt or mortgage-backed securities; the Treasury Department could make billions of dollars in loans to the companies or even buy stock in the companies.
"Government officials are always planning for worst-case scenarios and our note is intended to highlight some options that may be available to policymakers," he wrote. "We suspect hybrid versions of these plans also are possible."
Under current law, the Office of Federal Housing Enterprise Oversight (OFHEO), the regulator of Fannie and Freddie, could take control of the firms if their capital falls too far below required levels. It is unclear how the firms would operate in that situation, known as a conservatorship.
OFHEO Director James Lockhart issued a statement late Thursday saying that his agency was closely monitoring the firms' credit and capital positions. But he pointed out that they had already raised $20 billion in capital and that they adequately capitalized, holding funds well in excess of his agency's requirements.
Investor panic
Still investors were worried that continued problems in the housing market would cause more than the $12.7 billion losses the two firms have lost between them since last July. The decline in their stock value makes raising additional capital to cover those future losses that much more expensive and difficult.
"Our primary concern about Freddie and Fannie is that credit losses are likely to be worse than the management's current judgment, which will further pressure the capital base, and we remain cautious until we are better able to quantify these risks," wrote UBS analyst Eric Wasserstrom in a note Thursday.
Those concerns prompted him to raise his estimated loss for Freddie and to cut his price target for the stock, although, he retained his neutral rating on both firms, rather than urging clients to sell their holdings.
But the biggest concern Fannie and Freddie shareholders faced Friday was what would happen if the government did have to step into rescue them. Certainly, the big selloff earlier in the day reflected some investor fears that shares of Fannie and Freddie could become worthless in a bailout scenario.
Monday, July 7, 2008
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