11:49 FNM Fannie Mae plan a 'disaster' to Rogers; Goldman says sell - Bloomberg.com (10.37 +0.13) -Update- Bloomberg.com reports U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac (FRE) is an "unmitigated disaster'' and the largest U.S. mortgage lenders are "basically insolvent,'' according to investor Jim Rogers. Taxpayers will be saddled with debt if Congress approves U.S. Treasury Secretary Henry Paulson's request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac, Rogers said in a Bloomberg Television interview. Rogers is betting that Fannie Mae shares will keep tumbling. Goldman Sachs Group analyst Daniel Zimmerman said the mortgage finance companies' shares may fall another 35% and lowered his share-price estimate for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17... "These companies were going to go bankrupt if they hadn't stepped in to do something, and they should've gone bankrupt with all of the mistakes they've made,'' Rogers said. "What's going to happen when you Band-Aid and put some Band-Aids on it for another year or two or three? What's going to happen three years from now when the situation's much, much, much worse?'' Rogers said he had not covered his so-called short positions in Fannie Mae and would increase his bet if it were to rally.
I may be a little behind on my GS, but didn't they have a bad last couple of quarters? I have a hard time listening to folks who are wrong.
yeah thanks goldman, you've dumped your holdings and now you say sell. GM burning more cash than most companies could ever fathom, it went from 38 to 12 and then it was a sell. Why does this company get the respect it does? They hip pocket the SEC, fuck over middle class America, at every turn, and yet Goldman is still the salt of the earth. They literally are the definition of everything that is wrong with this country. American Capitalism is only great if you remember that your American. Goldman sold out America long ago.
So now FNM and FRE are a sell, this is just to funny, well after the fact they come out and say to sell FNM and FRE. The same thing will happen when financials do turn around, everyone will be saying buy, buy, buy, and by that point they will be up over 25-50% from their lows. Aside from that this slow grind lower to 10k is really getting old, seeing the financials drop 1-3 bucks a day is getting old as well. I would rather see one day where the financials just fall 30-50%, the DOW drops below 10k, and the markets see a short term bottom. I believe the DOW is getting ready for a huge one day sell off, some may wish it could happen sooner than later. A drop to 10k by friday would be better than a slow, slow, slow drop to 10k by the end of August.
I think he also placed a $5 price target on C, wow this guy new it before anyone else, when he says its time to buy it might just be the time to buy. I think if you buy the right stocks after this is all over you could make 300-500% over the next decade.
Hang in there, you'll get your wish, and quite a bit more -- but not likely by friday. That's Options expiration.