westwest888

Why I Finally Bought Fannie Mae

You look like a thug from Scarface in your photo. Oh yeah, and you just made a hellacious trade!

Investing 101 - common stock is an option on the profits for the next 50 years, secondary to bond holders and preferred stock holders. And in this case, the US Treasury, Russia, China and Japan.

What's Driving Fannie and Freddie

Maybe the bond market is projecting the new cost of Treasury debt, in the agency spreads. In other words, when the Treasury bails out FNM, FRE, here are your new costs for the 5y and 10y.

Should the US Government Buy Distressed Bonds?

Sending everyone a check for a million dollars is also on the table. This would have a great short term effect and I'm bullish.

Disclosure: long QQQQ, DIA, SPY