Relax, Bernanke and Paulson say that they are adequately capitalised. It is all contained. How silly to think that they would lie to you and that you would find out on Monday that the entire equity had been written down to $0.01
Yeh if fannie and freddie get bailout it will be an old school nationalization, none of that pseudo-bailout crap at bear stearns. LOL @ Bill miller, his fund is the second largest holder of freddie and it currently ranks dead last on morning star among his peers, imagine now after the rout of the past week! Really highlights the quote from buffet, "when the tide goes out, you will see who has been swimming naked".. hahahaha
Not sure if you guys know, but their outstanding debt is humongous, what would happen to that, as of yesterday benchmark was trading t+105.
Bill miller is a textbook example of what the avg intitutional equity manager thinks like, every dip is an 'opportunity', bad things dont happen. You have to understand they lived through a gigantic bull market in stocks so they are conditioned to think good things will always happen. teachings from the church of contrarianism like 'buy when there is blood on the streets' make them blind to identify when the time IS different This guy cant read and understand a frikking balance sheet, he should be selling hotdogs not running money
Jim Rogers is the man! This clip is phenomenal--- at the very end he says don't get an MBA, you'll make more money as a farmer in the years to come. http://www.youtube.com/watch?v=JYkYF70tUmA
but he may double his account on FRE today. or he may triple his account on DTPI today. that guy may make big money but he may lose shit, he did not grasp trading principle yet.