Posted on 07/13/2008 8:41:18 PM PDT by Captain Peter Blood
I have tried to analyze all the information concerning Fannie Mae & Freddie Mac financial situation. It looks now as though the Federal Government through the Treasury Department with help from The Fed are going to shore these entities up. With the Treasury Department even buying outright stock in both companies. Long term I would say, from what I read, that a takeover by the Government just might happen in some fashion to protect the mortgage market. What about short term though? Will all the jaw boning that has been bandied about all weekend will these stocks be going up in the short term, namely this week, or will they continue a downward slide. They really don't have much further to fall. The Treasury Department might have to step in and start buying as early as this week if a slide continues. So the bottom line question is there a buying opportinity here to make a quick buck???????????
I predict Monday will be a blood bath
If your in for the long term buy. Short term’s lookin pretty crazy to me...
The price on question marks is going up as you’ve depleted the supply.
Oil will go up, stocks will go down.
OK where’s my consulting fee?
LOL!
Wait until the dust settles.
There’s been talk of the Feds buying equity in Freddie or Fanny if things get worse. If this happens it will not be on favorable terms to shareholders. Ex. the Feds throw a few billion into the company and end up with 90% of the equity, so common is diluted 10x or more.
These low-interest loans are a good thing for shareholders however. Is it enough to keep the companies afloat?
No, the Feds will screw over the shareholders. That at least is my prediction.
Ask Obama?
IMO: Monday will be a considerable “up” day, especially judging by the futures as they sit now. FNM and FRE will pop. The danger is, the entire world will probably short the bloody daylights out of them on such a rise, and that, ironically, may well be enough to buoy their stock prices.
OK, that covers the first 1.5 hours, LOL.
Past that, they are uninvestable and probably headed to zero.
IMO, the market needs to put on some green this week, and OE weeks have about an 80% bias towards upside. But NEXT Monday could open the gates of hell.
Ultimately, these two stocks are going to zero. They are in much worse shape than any gov’t liar has said so far. Far better to short Wachovia for a short term speculation. They are the next one to go down.
All Asian markets are down, except Japan. They close their mkt for lunch. It was up 1.12% at lunch, and is now up .5% 15mins. after trading restarted.
Buy Silver. SLV or SLW.
Both of those are good short and long term investments, I think.
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