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Should Fannie Mae (FNM) and Freddie Mac (FRE) run into serious problems, a rescue plan would likely shaft shareholders, the Wall Street Journal reports. Citing people familiar with the matter, the Journal says Treasury Secretary Henry Paulson is adamant that no government bailout plan benefit shareholders. The Bush administration says it thinks the firms will not fail and that its plan is to support Fannie and Freddie in their current forms.
FORTUNE: Daily Briefing No help for Fannie and Freddie shareholders « (http://dailybriefing.blogs.fortune.cnn.com/2008/07/12/no-help-for-fannie-and-freddie-shareholders/ - broken link)
I bailed on my Fannie Mae on Friday. Paulson and Bernanke are adamant about it not benefiting share holders only after they helped the pump and dump scheme so the big players could "get out" and leave the pension funds and average Joes holding the bag.
I have never witnessed such corruption and lack of moral integrity in my life!
See my blog for further analysis:
Bob's Blog (http://bob4bristol.blogspot.com/ - broken link)
They're hoping to prop up the markets before Citi and the other big banks report this week. That will be ugly. It's going to be a very volatile week.
I'm just wondering if there will be a rally to sell into. I sure hope so. Of course, any chance at a rally might be dampened by the pretty clear signal that the bank bailouts end here. Paulson hinted very strongly about that. They are probably going to let the weakest regional banks go under and look to foreign infusions for the majors.
They're hoping to prop up the markets before Citi and the other big banks report this week. That will be ugly. It's going to be a very volatile week.
I'm just wondering if there will be a rally to sell into. I sure hope so. Of course, any chance at a rally might be dampened by the pretty clear signal that the bank bailouts end here. Paulson hinted very strongly about that. They are probably going to let the weakest regional banks go under and look to foreign infusions for the majors.
I hope so too. I didn't get in on the short action since I'm 19 and can't open an options account. However, I just found a bear ETF (symbol SKF) that shorts the financials. I'm looking for a dead cat bounce so I can buy into the short position.
Who supplies paper to the mints? I want to buy some stock.
US spells out Fannie-Freddie backstop plan - Yahoo! News (http://news.yahoo.com/s/ap/mortgage_giants_crisis - broken link)
Top story on my home page. Inflation is about to wreak havoc on this nation. This might calm wall street for a few weeks though. Maybe we'll even see a rally. It'll give me a few more weeks to solidify my portfolio as well and get rid of this excess cash I'm holding right now (I want about $500 liquid cash on me, and right now I'm holding on to $1000). I need to bite the bullet, drive into Houston, and purchase some more silver. I need to take out a student loan as well before the bond market bubble bursts and rates sky rocket.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,761,129 times
Reputation: 3587
Quote:
Originally Posted by bchris02
If this happens, its game over America. Either way, its going to get EXTREMELY ugly. A bailout will likely bring hyperinflation (think $300 oil). The writing is on the wall. Lets look in the bright side - soon all the illegal immigrants will be returning home, and some of us might be following them.
The government will bail them out. No way around it.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,761,129 times
Reputation: 3587
Quote:
Originally Posted by bchris02
No, its game over for the American economy. Whats coming will make the Great Depression look like a mild 2001-like recession. The nearest thing I can think of to compare whats coming to is post-Soviet collapse Russia.
come on now! Stop the gloom and doom! We will be fine. Things will be a LITTLE rough for the next few quarters or maybe even the next year but we will get through it and be better off when we come out of it. The future is so bright, I gotta wear shades!
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