Why in the World did big Value Managers like PZENA, BRANDES and LEGG MASON buy so much of this crap over the past year? They are getting murdered in these two stocks. Goes to show that Wall Street is making alot of so-called smart people dumb. OUCH
I ponder that those 2.25 billion credit lines will be raised mighty quick to a few hundred billion. If they go far a takeover/under hells bellz.
Thay have a habit of doing that don't they. Only thing that worries me is the annoncement of the spinoff yesterday and the rummors of the Japan finance unit sale so close to the release.
If our government follows through with this, every single representative voting to bail them out should be recalled. Every last one. They will add 5 trillion to the debt of the U.S. (taxpayers) with one fell swoop. I have never, ever seen such utter criminality in my life. I will personally start a recall petition, and donate and solicit funds to recall any politician that votes to allow this.
If one has the ability to short their bonds one might be better off doing that. As off yesterday they were still trading at ridiculous tight spreads.
When was the last time since their formation after the Great Depression that FRE and FNM were insolvent, or is this another first under the current 'idiot frat boy'/'Academic Buffoon' administration?
Deflation is alive and well. Home prices, property prices and least we not forget the purchasing power of the greenback are all going downhill. Credit will once again return to the real world of banking where only those that do not need credit will get some. Recipe for stagflation which in itself is better than deflation which are are in midst of now. SLOW, slow slow for a decade or so. Lets give the whizkids on wall street a hand for screwing things up even more than they could imagine. IDIOTS. PS: Another sign of the times Chrysler, soon to be in the history books is offering ZERO % for 6 years on the Dodge Ram Gunboat pickemup trucks. If this will not move the "IRON" off the showroom floor you might go to flea mkts and pick one up.
The fed should just buy out every bank and call it a day, the collapse is happening at this very moment, if FNM and FRE are being taken over by the government then this is the just the beginning. Funny how just 1-2 months ago we were in the late stages of this credit crisis when in reality its just the beginning, no one will believe that its going to take many years for this to unfold. Next thing to start worrying about is credit card debt, nearly $1 Trillion worth and the derivative market, if these 2 start to unwind you will be looking at market levels 50% lower from yesterdays close.