Monday, May 11, 2009
U.S. Federal Budget Update
The Obama Administration put forth the revised 2010 budget today. Please click on the above tables and graph for a review. No real surprise, the projected deficit grew larger. The forecasts were all taken from the Budget.
It is interesting to note the anticipated Fannie & Freddie preferred stock draw-downs. To review:
3rd Quarter 2008: Freddie issues $13.8 billion in stock to the Treasury
4th Quarter 2008: Freddie issues $30.8 billion in stock to the Treasury
4th Quarter 2008: Fannie issues $15.2 billion in stock to the Treasury
May 8, 1009: Fannie requests $19 billion in stock be issued to the Treasury
Each time, the stock was issued to cover negative net worth.
The Budget includes the following:
$27.1 billion more in 2009 issuance
$41.3 billion more in 2010 issuance
$23.7 billion more in 2011 issuance
.......and the real estate market has found bottom ?
Posted by MK at 9:57 PM