FNM & FRE are saved

Discussion in 'Wall St. News' started by Bowgett, Jul 13, 2008.

  1. Perfect! Glad to hear it. I wanted to see some shoes drop but not these two. Good move by the Fed IMO.
     
    #11     Jul 13, 2008
  2. Cutten

    Cutten

    It'll be really interesting to see what happens with the shareholders. I think it will be hard to justify handing investors lots of money from the taxpayer, so whatever govt share purchase might happen, I would expect it to be very dilutive of current equity.
     
    #12     Jul 13, 2008
  3. the cost of this will be spread out over all the credit markets..higher rates

    Paulson clearly did mention swaps...

    likely the real reason for the bailout
     
    #13     Jul 13, 2008
  4. Again, common sense left America some time ago. We're going to have to pay for the dumbing of America, and the politicians that the dumb have ALLOWED into office. I truly wonder if this Country is no longer smart enough to be ALLOWED to vote. With the average attention span being that of a super bowl commercial, I wonder what lies ahead...
     
    #14     Jul 13, 2008
  5. cszulc

    cszulc

    Woo hoo! Long 1 ES over the weekend from 1238.75 and long 500 FRE from 4.48 and 200 FNM from 6.63.

    Knew this would happen....
     
    #15     Jul 13, 2008
  6. Common sense left, followed by manufacturing, useful jobs, companies/money/assets, etc.

    Who cares if people are smart enough to vote, look at the garbage that we have to choose from. Politicians don't even keep their promises once they are elected anyway - voting is overrated nowadays.
     
    #16     Jul 13, 2008
  7. I think the Fed and Bernanke (following Greenspan) have done US Markets great wonders.

    But the longer term picture remains muddy and the house SHOULD be put in order - SOON.

    That being said. . .what I find interesting is that the again timely (first the rumor as fear was being incited, Friday - then the denial that FRE and FNM were not well-enuf capitalized), 6:00 pm futures open to announce this, move THIS TIME SO FAR has failed to incite a huge rally as Fed "shenanigans" to move markets in the recent past have.

    At least the Stock Market is reacting appropriately again - after the "perma-bull" phase. So now we can still hope for a near-term capitulation. . .instead of another 6 mo to year <i>slowwwwww</i> death - and get on with the forward-looking picture regarding US. stocks!!

    paysense
     
    #17     Jul 13, 2008

  8. Monday markets gonna rock hard to the upside? Most likely. Catalyst..
     
    #18     Jul 13, 2008
  9. Bowgett

    Bowgett

    This can create at least one-two month short squeeze rally.
     
    #19     Jul 13, 2008

  10. Never underestimate the capability of American people.

    Look what they managed to do. Pulled down American pillars of housing FRE and FNM and the temple on their heads.

    They simply stopped buying real estate and everything collapsed around and top of them. Someday we all would be all living in tents like 3rd world refugees baking cowdung patties for lunch.
     
    #20     Jul 13, 2008