FRE and FNM

These stocks are seeing constant 52 week lows...

Think they could be in the single digits soon.

 

you are the indicator and the risk is low enough

fuck i don't want to do this but it is usually so reliable...

 

Thanks for the heads up. Covered my short FRE.

 

I think they are going to $0. it seems that things changed in washinton and now NOT helping shareholders wins the vote. but a obama treasury secreatry could be different

 

I dont think $5 Billion is going to be enough for FRE, its going to be a difficult situation for them to raise capital, as more writedowns occur in banks and brokers and the credit crisis deepens, raising capital in my opinion is going to come to a standstill.

 

At what point will congress actually do / say something about FRE (and FNM)?

For example, that FRE and FNM are being nationalised?

Will they really wait for these stocks to go to $2 a share before announcing nationalisation?

 

NEW YORK, July 9 (Reuters) - The Bush administration has had discussions about contingency plans in the event that giant government-backed mortgage-lenders Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) falter, the Wall Street Journal reported on Wednesday.

Shares of the two companies have taken a beating recently on worries about whether they can withstand more losses and support housing as well as concerns that they might need to raise massive amounts of new capital.

The discussions have been going on for months as part of the Treasury Department's normal planning,but have become more serious of late, the Journal said, citing three people familiar with the matter.

According to the paper, the government doesn't expect Fannie and Freddie to fail and no bailout is imminent.

Still, the Journal said Treasury officials are looking at what to do if the two companies can't raise more money and keep operating.

Freddie Mac shares slid 23.8 percent, or $3.20, to $10.26 on Wednesday, after briefly breaking into single-digit territory, while Fannie Mae shares fell 13.11 percent, or $2.31, to $15.31, both on the New York Stock Exchange.

Representatives of Fannie and Freddie were not immediately available to comment.

 

A very good trade is setting up. Short the dollar, buy gold, and crude oil. Even TIPS if you prefer.

 

QFNM.PK

 

JP Morgan will offer them $1/share.