There is this TECHNICAL BULLISH DIVERGENCES in the indexes and Stochastic indicators. Indexes are moving down while Stochastics are sloping up. It usually resolves in the direction of the indicator. Now here comes FNM, FRE bailout and Fed's manipulative tool box out of the closet..This will fuel an explosive move to the upside with this immense short interest....till our doom and gloom brigades take over and sink the Titanic once again. You thought Feds were out of options? Think again. You know nothing about mighty Feds, nothing at all.
So just to summarize, there are 3 separate proposals that have been authorized: 1. Treasury lending amounts of cash directly, with no pre-subscribed limit. 2. Treasury buying amounts of equity directly, with no pre-subscribed limit. 3. Fed opening up the discount window to FRE and FNM. The goal here is to prevent a Bear Stears or Indymac scenario whereby there is a crisis of confidence and FRE and FNM can't sell debt. So the three proposals are simply for prevention purposes it seems. Because all three really rape the taxpayer, as the stockholders of FNM and FRE are getting bailout as well. A perfect real life example of privatizing profits and socializing losses.
NYTimes is saying they are seeking a hike to Federal Debt Levels. Atta boy. Run those presses. They can't sell newspapers anymore. Use those presses and use newsprint. this is like one big boil on your ass. It's real painful, but when you get it lanced, get all the junk one time. It'll hurt like hell, but it's worth it. We need to purge Washington of these moronic criminals - both sides of the isle. This is the opportunity.
People said Feds were out of options? Well think again, these mighty Feds been doing this for 100 years.. You know nothing about them. They will step in at the right moment and catapult markets into the air up above..
The sheer economic ignorance on ET is truly outstanding....... Very obvious why none of you make any money..... You people simply don't know the difference between IndyMac (bank), FNM (Gov Agency) and LEH (investment bank) Employment at 95%, interest rates at 6%, inflation at 3%.....gimme a break..... I had jumbo CD's paying me 16% interest in 1981/2!!!!! Inflation above 10%.....unemployment over 10%....prime interest rates at 21%....that is not a typo......21%..... SteveD
as i asked in another thread....how would this be good for the shareholders? if the govt takes an equity stake in either then there would be massive dilution of the common stock.