I stand by my words. Let them go BK, but without conspiracies and gang banging by billion dollar hedge funds. Dude, if you looked at the books of many hedge funds, I'm sure they would be forced to reduce leverage by a factor of 10. Let's not paint those venal souls as bastions of rectitude. nice line , huh
That's not analysis, nor even opinion, that's just blind optimism. FRE needs to raise 5.5 billion in capital just to meet current regulatory requirements, ignoring any future losses. However, its market cap is only 5.8 billion. That means they are going to have to dilute current shareholders by almost half in order to remain solvent. Even if their business magically returns to 2006 profitability, and shareholders are rewarded with a 2006 market capitalization, the share price will still be far lower than 2006 levels. In practice though, they face at least another year of losses, recapitalization, and dilution before they can even begin to stage a turnaround. Martin
The difference between FNM/FRE and other companies is that this one is fully backed by the US Government which is willing to do just about anything to back them up. How many times in the last 200 years has the federal government signed orders in which to keep short sellers at bay? The 800 lb Gorilla is now wide awake and will do what it can. You have the US Congress and the President ready to do just about anything.
I'm so sick of idiots blaming shorts for what has been going on in financials. The shorts didnt give every joe dick head a 500K mortgage to buy a 200k house. I really wish all these fiancials who are the cause of the ridiculous housing runup and consequent collapse go bankrupt and take their investors with them.
Well, get used to it. Because they did it. And it's going to come out. Like we've said a million times, just cuz Gramma is old, you can't smother her because you're in a hurry to cash in.
yeah flytiger , thats what happens when you have a school system like ours. They lowered all the standards and now we have a whole generation of imbeciles that can't see the forest for the trees. According to them , any company that has any financial problem is fair game for the passing of exaggerated rumors, ballistic shorting, and whatever it takes to make some easy money for the hedgies. They don't appreciate that this will cost THEM big money and more , if it's not stopped.
http://blogs.wsj.com/deals/2008/07/...armageddon-and-the-uptick-rule/#comment-82320 And as much sense as he makes, the objections stated below the article by many posters are ludicrous.
For some unknown reason, I get myself mired in these type things. What I know, you can't know. But I have tried to carry myself above any question of integrity and ulterior motive. You will have to monitor my posts, and decide for yourselves. I can tell you after 9/11, the Government came out, 'we're going to open, don't worry...." etc. I was told by an infrastructure guy, 'we can't open. The exchange is covered with debris, ......... etc. etc." Rule one. The authorities always make things sound better than they are, or don't even address the real issues. Two. See one. Think about this. By letting the Option MM rule slide, Cox undid everything he did Monday. So tell me. Why? Who owns whom? What is the downside? You people better wake the fuck up. Because unless you're actually pocketing the cash from this charade, you are victims just like the rest of us. The only way I see out is, if the law moves very, very quickly. Or else, the system is finished. They're going to hammer these banks and financials out of existance; they'll Wipe out shareholder value, and tap the taxpayer for billions and billions of dollars. My parents grew up in the depression. My father told me, he was so poor, he went home for lunch, and just hid outside the barn. He had nothing to eat. My mother ate macaroni and potatoes. My grandparents didn't eat until the kids ate. The difference between you morons and 7 is, we realize there are no guarantees anywhere, that we don't 'deserve' anything, and what we do really deserve, we don't want. We also consider the well being of our fellow man, unlike the pricks that inhabit Wall St. I suggest you go to the Aguirre thread and read about Samberg and Mack. And then realize they kept themoney, and operate like nothing happened. Maybe then, you can possibly understand the terror that lurks on the horizon.