nycDem

AIG: Details of Its Punishing Bailout

Somebody help me out here. I'm confused by the equity dilution.

So AIG is giving 80% of its common to the government? If so, how is giving stock to the government "dilution"? Or it's issuing 80% more stock to the government on top of it's common?

Thanks in advance.

Fannie and Freddie: The Heat Is On

Trader Mark, I love your ideas. But I'm thinking that this is too risky, though, for a straight put/short. It seems that all this noise is coming from one source: Barron's.

As a trader, the way to play this is through the volatility. FRE/FNM are either going to rocket upwards or come crashing down.

So my advice might be to buy a put/call straddle or a strangle and sit back and watch the fireworks. Heck, both of them already dropped 22% today.

Parsing Paulson: The Fannie and Freddie Bailout

Spot on. Enjoyed the article immensely. Bought a tight option straddle on FNM on Friday hoping to make a dirty buck on the volatility.

But honestly...I'm not happy about any of this. Our country should be better run than this. Right now it's just being run into the ground.