Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
>I am very interested in how people think the markets will react to this when they open in Asia, Europe and the US on Monday. Anyone else want to take a shot at this<
Dollar down. Spreads vs. Treasuries narrow on every type of debt class for a while. Financials rally (to be sold) Might be a watershed event for the credit markets but not equities. Be eternally grateful if it is just the former.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
>Fan-Fred shareholders are just an instrument for the govt. to keep the GSE's debt off the federal budget. Therefore unless the govt. wants to explicitly or implicitly assume all govt. debt. it has to maintain the shareholders.<
hmmm....not a bad point. Keep the shareholders just barely alive enough to maintain the fiction that the debt is theirs alone. It could happen.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
>You are a self-serving attention mongering twit. Wiping out the common stock would do more damage to the world then you could imagine<
When Paulson said 15 times in July his first priority was to "protect the taxpayer", a light bulb should have gone off in your head. Trust me... Joe Six Pack is going to be so angry about the debt losses he will be paying for, he's not going to be very sympathetic to the shareholder losses.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
SWRichmond essentially has it right. They are going to dribble the losses into the US budget deficit quarterly. Sort of a drip, drip, drip, where the dollar is concerned as far as the eye can see. We've really done it this time. If we aren't looking at a 6-8% deficit to GDP sometime during Obama's or McCain's tenure, I'll be happy to eat my hat. Bush did a helluva job.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
Dollar down. Spreads vs. Treasuries narrow on every type of debt class for a while. Financials rally (to be
sold) Might be a watershed event for the credit
markets but not equities. Be eternally grateful if it is just the former.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
hmmm....not a bad point. Keep the shareholders
just barely alive enough to maintain the fiction that the debt is theirs alone. It could happen.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
When Paulson said 15 times in July his
first priority was to "protect the taxpayer", a light
bulb should have gone off in your head. Trust
me... Joe Six Pack is going to be so angry about
the debt losses he will be paying for, he's not going to
be very sympathetic to the shareholder losses.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
to dribble the losses into the US budget deficit
quarterly. Sort of a drip, drip, drip, where the
dollar is concerned as far as the eye can see.
We've really done it this time. If we aren't looking
at a 6-8% deficit to GDP sometime during Obama's or
McCain's tenure, I'll be happy to eat my hat.
Bush did a helluva job.
Freddie/Fannie Plans In Motion; Why Are They Being Underplayed? [View article]
over the next 3 years will easily run to $200-300B.
Mercifully, the shares can only go to 0.