ZagnZig

Fannie and Freddie: Rising to Big Cash or Another Fake?

Wow - I shorted FNM with every dime I could get the friday before nationalization - sure the common were wiped out....


On Aug 29 10:54 AM ArchDukeFerdinand wrote:

> The common shareholders of FRE and FNM will not fail. Why? The FDIC
> has
now
> explicitly guarantee the debt of FRE and FNM. The GSE managements
can
> issue debt whenever a contingency requires it.

Added Debt Won't Rescue the Great American Ponzi Scheme

He writes: “Consequently, solutions to date have not only failed to “fix” anything, they have made the problem worse.” How obviously wrong can anyone be? People, please do not forget the consequences and the scale of the crisis.

Imagine the “solution” this author proposes: C, BAC, WFC, MS, AIG, FNM, FRE, JPM…all failing? What sort of solution would that be? Any suggestion that letting them fail would be better than our current predicament is nonsense! What grocery store would remain; would you still have your job? How would you feed your family or keep them warm?

Violent civil unrest would ensue. The nation would be blown to pieces.

Reading the comments here makes me wonder if the people who think bank failures are the cure are not honestly considering the final consequences of their decisions.

Fannie and Freddie: Rising to Big Cash or Another Fake?

Do you know how fast – FAST MONEY IS?
Everybody knows that anyone buying this stock is strictly speculating –
The common shares are completely and totally worthless!!! Get it? Even the preferred big boys are lobbying congress trying to get 10 cents on the dollar for their preferred’s.
The rush out the door is going to happen in the next day or two and do you know how fast the fast money really is?