{"id":196203,"date":"2008-05-16T16:49:00","date_gmt":"2008-05-16T21:49:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/05\/16\/freddie-mac-using-funny-accounting-only-im-not-laughing\/"},"modified":"2008-05-16T16:49:00","modified_gmt":"2008-05-16T21:49:00","slug":"freddie-mac-using-funny-accounting-only-im-not-laughing","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/05\/16\/freddie-mac-using-funny-accounting-only-im-not-laughing\/","title":{"rendered":"Freddie Mac Using Funny Accounting&#8230;Only I&#8217;m Not Laughing"},"content":{"rendered":"<p>It appears that Freddie Mac has <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=a75bxyERfFRw\">made some significant changes to its accounting system<\/a>, to the tune of 2.6 billion dollars.<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>&#8220;They put a lot of lipstick on this pig including several accounting changes that have given them a one time step-up,&#8221; said Josh Rosner, an analyst at independent research firm Graham Fisher &amp; Co. in New York.<\/p><\/blockquote>\n<p>Only they are implicitly backed by the taxpayers.<\/p>\n<p>Once again, it&#8217;s, &#8220;Level 3 assets, a category that indicates the holdings are so illiquid that they can only be priced using the firm&#8217;s own valuation models.&#8221;<\/p>\n<p>There&#8217;s that word again, illiquid.  And it&#8217;s the valuation model for level 3 assets that got us into this mess.<\/p>\n<p>They&#8217;ve just found a pile of crap, and concluded that there is a pony beneath.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It appears that Freddie Mac has made some significant changes to its accounting system, to the tune of 2.6 billion dollars. &#8220;They put a lot of lipstick on this pig including several accounting changes that have given them a one time step-up,&#8221; said Josh Rosner, an analyst at independent research firm Graham Fisher &amp; Co. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,985],"tags":[],"class_list":["post-196203","post","type-post","status-publish","format-standard","hentry","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/196203"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=196203"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/196203\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=196203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=196203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=196203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}