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    • Tue Jul 15th 11:31 AM | Rating: 0 0
      Commented on:
      Dollar Falls to Record Low Over Fannie and Freddie
      USA is losing severely in a financial attack .

      It is true that there is the subprime problem .

      Short sellers pull down financials would only fuel the vicious cycle that spiral the economy from bad to worst .

      Sure , the short sellers are strong and concerted .

      All financials could go down more than 5% or even 10% in one or two hours time .

      The concerted strength can only be released by some conspired power .

      Such conspiracy is a crime .

      As well , it certainly would successfully push a panic button to the general investors who may only want a quiet life when retired from long years of work .

      Cutting the equity of bank stock by pulling down their prices would of course put the bank in a credit crunch .

      The short sellers are fed in expense of the bank's equity .

      The only way to savage this economy is to buy against the short sellers so that the financial equity or pricing can be raised to a reasonable level .

      Fannie / Freddie ( FNM / FRE ) are the stocks of most strategic importance .

      Should a strong defender step in to buy against the short seller so that the pricing can be maintained at a reasonable level .

      The whole financial market would be at the start to be stablized .

      FNM / FRE would need the equity or reasonable pricing in order to facilitate the passing of the mortgage rescue law .

      The mortgage rescue plan would effectively stablize the housing market on a permenant basis .

      I knew for the fact that some government encountered a similar financial cresis with the short sellers .

      The same government buy against the short seller to maintain a reasonable price level , by using a trust funds being set up with the taxpayers' money .

      The trust funds then owned a pile of the stock purchased from the open market without diluting the corporation at issue .

      The stock price then grow back to normal and the trust funds made huge money for the taxpayers .

      The short sellers lost a huge chunk of money and disappeared .

      The bad news used by the short sellers disappeared as well .

      Can the bulk of people , general investors and public inclusive , win this financial war against a small group but organized short sellers ?





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    • Tue Jul 15th 09:29 AM | Rating: 0 0
      Commented on:
      Financials: Don't Believe the Rumors
      The short sellers are raging an attack at the financials to an extent of damage , worse than the 911 terrorist attack .

      The only difference is that the short sellers are much stronger than the defenders .

      Yes , it is a financial war and not just a market of supply and demand .

      All bank stocks are commonly seen sliding over 5% in price in just about 2 hours time , regardless the financial strength of each individual bank .

      Such strong concerted power can only be released by a conspired group of short sellers .

      Conspiracy is criminal .

      Panic catch on by the general public and the price went down further .

      The defenders of price become weaker due to their loss of equity .

      Lowering price or equity , credit crunch , weakening economy all come into a vicious cycle and domino effect .

      Such huge depletion of pricing has nothing to do with the value of the bank stocks .

      Some banks are paying dividend at a rate of more than 20% to the now depleted price .

      Yes , they would cut dividend in the next quarter while their equity is cut tremendously by the invincible short sellers .

      Strong defenders are needed to buy against the short sellers so that the badly depleted price can be pull back . The confidence of investors would be accordingly restored .

      The Fannie / Freddie stocks are immensely important in strategy .

      Should the Fannie / Freddie stock pricing be stablized , the pricing of the rest of the financials are less easy to be pull down further .

      The equity values of the two are of immense importance to the passing of the mortgage rescue plan .

      The mortgage rescue plan would then help to stablize the housing market .

      I know for the fact that some government did encounter a similar financial war .

      The same government stepped in to buy against the short sellers by setting up a trust funds using the taxpayers' money .

      The same government won and made money for the trust funds as a result that the pricing grow back to normal .

      The shortseller lost a huge chunk of money and disappeared .

      All those bad news the shortsellers used disappeared as well .

      Can the good guys win the war ?




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