trendsrus

Fannie, Freddie Default Swaps Big Non-Event

Let us be realistic in the case of Fannie Mae takeover and bailout please.

Firstly , there was no 'takeover'. The 'takeover' was a mugging of a company that acquiesced under pressure. The CEO and board were strong armed into agreement by the FED with an ultimatum of do it by choice or by force.

Secondly, there was no bailout. The 'powers' granted to Treasury under the new housing bill do not go into effect until October and as such any capital injections if ever required would not happen until after the law is in effect and happen only within the guidelines set forth by Congress.

Lastly, the business going forward for Fannie will remain as always UNLESS Congress changes the Charter -NO NO the Treasury has no say in the matter at all.

In conclusion, Fannie was and is meeting all Capital requirements SO why was the 'takeover' initiated? I will tell you what you may be either ignorant of or blind to. The buyers of Fannie debt were becoming worried as to the soundness of Fannie because of the mega short interests. The short and distort gangs that have been mugging the financials -Ackman ring a bell? YES what we see in the market place is Fear & Greed. The Greedy apparently were effective enough to cause enough Fear that the US GOV felt it necessary to act when fundamentally Fannie was and remains sound. You who disagree will one day see the reality...