sure looks like it. as soon as those mobsters got scared of being called in , the stocks are behaving much better. I thought only fundamentals mattered and shorts were irrelevant. lol, morons.
This will actually be very interesting. I say it is too soon to judge the situation - 3 days of short covering isn't enough ... If after 2 months it is still stable, then I agree with you. If the fundamentals continue to weaken but the stocks hold up (unlike the past few weeks up to this point), that points to the fact that we may never see an elimination of the uptick rule return. If indeed true, this might point to hatch quite a bull market after this cycle troughs.
I contend its not just short covering. Its the LACK of short attack, which in itself is key. This point is missed by most, even though they should know better.
the whole market covered their shorts... I believe it's called a BOUNCE. The financial slaughter will continue
The problem with Fannie and Freddie is not their stock price, its that their liabilities exceed their assets. The stock could go to 100, and it won't change that.
So is the general consensus that the stocks recent run up is entirely a result of short sellers covering? is there any real chance the government wont have to come with a lot of financial support and whipe out the current shareholders?
The US Government is the sleeping 800 lb Gorilla on Wall Street. Usually, they turn a blind eye and doze off when it comes to the Wall Street hooliganism. However, when Uncle Sam finally wakes up then thats when the magic happens. In this case, Uncle Sam has decided to stand behind these purely American institutions. Now the 800 lb Gorilla is in the room and fully awake. Even at the current price levels, FNM and FRE are still bargains. They will trade at 2006-2007 levels in a matter of a few years. This is the 10-bagger that will happen and there are not that many traders or funds who can make 10 times their money in just a few years. Get on board, stock on sale!
The crooks and mobsters are the ones running Fannie and Freddie. They cooked the books so bad they could not even issue a straight quarterly EPS for years.