My Friends Call Me LASER

Fannie Mae - Or May Not

bouce, that's what I'm calling it. BSC $50 to $3 to $10, Fannie $13 to $6 to $16 in approximately the same time frame and for similar reasons. I'm still upset for missing the best trade of the year (long BSC at $3). I would like to hear some short-term trading advice on FNM. Standing on the sidelines isn't an option.

Fannie Mae - Or May Not

Can we translate this banter into a quantifiable market advice. If everyone agrees that Fannie and Freddie will survive no matter how ugly their balance sheet is or highly leveraged they are, why not buy at an 85% haircut. There is absolutely no risk-reward in shorting the stock at this point to know that ultimately the government throw them any life line, necessary or not. However to buy now would be insane. Fannie already experienced the BSC