#424 Chris Whalen: Fannie & Freddie Stuck, Foreclosures Rising, Credit Problems Coming

<p>In this episode of The Wrap with Chris Whalen, Chris calls Treasury Secretary Scott Bessent’s comments on Fannie Mae and Freddie Mac a “pump and dump.” He explains why the GSEs won’t be released during Trump’s term and lays out his own fix: buy back the public common shares and leave the U.S. as the sole shareholder. He breaks down Auction.com data showing foreclosure auctions up 25% from a year ago as COVID-era protections end and housing shifts to a buyer’s market, and he shares his advice for sellers: price to sell. Whalen also covers REIT earnings, United Wholesale Mortgage’s strategy shift and Annaly’s return to book value. He explains why he’s less bullish than his friend Ralph on 10-year Treasuries near 5%, and whether the Fed will hike or hold at next week’s meeting. He says he’s long energy, adding to gold on weakness and cautious on financials as credit problems surface. He closes with the risk he thinks nobody is watching closely enough: an unexpected turn in the Russia-Ukraine war.</p><p><br></p><p>Thank you to our sponsor, Monetary Metals. Learn more at https://www.monetary-metals.com/THEWRAP/</p><p><br></p><p>Links:    </p><p>The Institutional Risk Analyst: https://www.theinstitutionalriskanalyst.com/  </p><p>Twitter/X: https://twitter.com/rcwhalen    </p><p>https://www.amazon.com/Inflated-Money-Debt-American-Dream/dp/139428571X</p><p><br></p><p>Use the code TheWrap2026 for 25% off your first year of The Institutional Risk Analyst <a href="https://www.theinstitutionalriskanalyst.com/plans-pricing" target="_blank">https://www.theinstitutionalriskanalyst.com/plans-pricing</a></p><p><a href="https://www.theinstitutionalriskanalyst.com/plans-pricing" target="_blank">⁠</a></p><p>Timestamps: </p><p>0:00 Welcome to The Wrap</p><p>1:04 Bessent, Fannie and Freddie, and the “pump and dump”</p><p>3:48 Whalen’s fix: the U.S. as sole shareholder</p><p>5:08 Why “privatization” without control is a fraud</p><p>7:48 Foreclosure auctions up 25%</p><p>09:45 Is there a credit problem in housing?</p><p>10:56 Advice for sellers: price to sell</p><p>13:08 REIT earnings and UWM’s new strategy</p><p>14:19 Annaly back to book value</p><p>15:42 The case for 10-year Treasuries</p><p>19:14 Why Whalen isn’t as bullish on bonds</p><p>20:16 Bonds vs. gold vs. cash</p><p>22:06 October FOMC: hike or hold?</p><p>23:31 Natural gas down, diesel still high</p><p>24:59 Positioning: energy, gold and caution on financials</p><p>26:43 How income investing works</p><p>28:41 The bi