PhinT

Global Markets in Review: Winning Streak for Equity Bulls

I sure did not see a bull run today and I am glad I bought SKF on Friday in my anticapation of the market..good luck to all

Bailouts: Misunderstanding the Moral Hazard

The situation is beyond scary. We have a Sec of Treasury who was in the thick of this mess back 2006 (and reassured the public that FNM was a solid company before the gov’t took it over) and is making decisions that from my perspective will make the same people $billions more while folks like me have lost large percentages of their 401k over the last 8 years and individual stock trades (FRE/BS/LEH/FNM etc…)…. Who are we really bailing out and will this bill actually benefit those placed in the middle of this criminal manipulation of the market benefiting the few…

If the FBI real does something (which I doubt because it is to far reaching and would be bigger than the Nuremburg trails after WWII) we will be reading about government, Private Equity, Wall Street and Corporate Executive involvement … I hope the FBI does do something and if so, these guys should really be treated as “War” criminals…

FBI Investigates Victims of the Financial Fallout

The situation is beyond scary. We have a Sec of Treasury who was in the thick of this mess back 2006 (and reassured the public that FNM was a solid company before the gov’t took it over) and is making decisions that from my perspective will make the same people $billions more while folks like me have lost large percentages of their 401k over the last 8 years and individual stock trades (FRE/BS/LEH/FNM etc…)…. Who are we really bailing out and will this bill actually benefit those placed in the middle of this criminal manipulation of the market benefiting the few…

If the FBI real does something (which I doubt because it is to far reaching and would be bigger than the Nuremburg trails after WWII) we will be reading about government, Private Equity, Wall Street and Corporate Executive involvement … I hope the FBI does do something and if so, these guys should really be treated as “War” criminals…

Fannie/Freddie Bailout 'Disastrous Fiasco'

Blogs are nice to vent but everyone affected needs to write their Senator and state your position for action request action… Here is a sample letter:

Dear Senator,

My wife and I are holders of stock in Fannie Mae.

We are utterly disappointed in the actions of our government with regard to the confiscation of our holdings in GSE stock. As a conservator, the government's first responsibility is the management of the GSE's for their "stockholders-in-absen... Becoming a part owner through Confiscation is entirely unconstitutional and violates all principles of our capitalist system. No due process has been given to the shareholders... just an at "gunpoint" meeting of the CEO's and Boards of Directors to seal up a complete transfer of operational power of the GSE's to their regulator.

This is not what the recent Housing Bill intended nor is this act keeping in good faith the convenants set forth by Congress so long ago when the Charters and spin-offs of the GSE's began.

The Government should pay out all capital to shareholders to rectify this action or tender offer for all outstanding shares at Book Value.

No amount of cost benefit analysis accounting could possibly have shown the GSE's to be defunct at this time as just one month ago OFHEO stated that the GSE's were "adequately capitalized."

Running roughshod over the shareholders is truly a unique and remarkable event in our history. I fear that never again will I be able to trust the statements and integrity of my government as I truly feel victimized by it at this time!

Please help to rectify and recompense the damages brought upon the shareholders of the GSE's by this "takings action."

Sincerely,
ME

FNM / FRE: What Did It Take To Get Management On Board?

Would you people get the story right... there is no dilution in fact FNM and FRE actually paid the Treasury $1billion in preferred shares (book entry, no cash exchanged)to set up the conservatorship. Please read.

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WASHINGTON (Reuters) - The U.S. Treasury expects to purchase $5 billion of Fannie Mae and Freddie Mac mortgage-backed securities within the next month as part of its takeover of the mortgage finance giants.

Senior government officials told reporters in a news briefing the program would be the first taxpayer cash outlays associated with the plan to put Fannie Mae and Freddie Mac into a government conservatorship.

The purchases will be on the open market and will be managed by a private investment manager appointed by the Treasury.

This week, the Treasury (((will receive $1 billion in a new class of senior preferred stock from each of the two companies as "compensation")))) for signing the agreement to support the two main sources of U.S. mortgage liquidity, the officials said. This stock has a 10 percent coupon.

The Treasury also will receive warrants representing 79.9 percent ownership share of each firm, (((((but the officials said the government has no plans to exercise those warrants,))))) which carry a nominal exercise cost of less than $1 a share.

The officials said the Treasury has set up an (((automatic mechanism to inject fresh capital into Fannie Mae and Freddie Mac through senior preferred stock purchases when their liabilities exceed their assets according to their quarterly financial reports))). The earliest this could start would be within 60 days of the companies' September 30 report, the officials said.
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This will only happen when FNM and FRE have a negative net worth. FNM HAS TO GO THRO $43BILLION IN LOOSES BEFOR THIS INFUSION OCCURS Rating :

Looming Wave of Option Repricing?

let them go... The stock holders seem to pay for this poor management

Fannie/Freddie Rally: A Product of Fed Intervention

I would hardly call this week an “intense rally” of Fannie and Freddie… the stock is sitting at $6+… From my perspective, the news media has lead these stocks to the brink of failure (also the Market) based on media hype and rumor mongering where emotion and “opinion” were the drivers not facts…I am still waiting for an article or blog that just states the facts instead of someone’s attempt to manipulate the Market for personal gains or ego… Is Chicken Little right in that “the sky is falling…?”

On Recent Financial Stories

Humm… You say that you have no idea how Fannie, Freddie are keeping a float? Perhaps a little more research on your part would present a more accurate picture of what the realities are…It is apparent that the Shorters continue to march with rumors and rumors of rumors…. I just read an interesting article on Bloomberg.com that says that Fannie, Freddie Mortgage Profit Reaches 10-Year High (new investments)…. Interesting article … “The sky is falling” said Chicken Little… I do not think so…

bloomberg.com/apps/new...

Wall Street Breakfast: Must-Know News

Humm… Fannie, Freddie Mortgage Profit Reaches 10-Year High …. Interesting article on Bloomberg.com today… Is the sky still falling said Chicken Little… I do not think so…

The Investment World & Public Policy

Appreciate some facts outlining your commentary… Does anyone know what is with CNBC with their campaign to see FNM fail coupled with Crammer’s non stop soap box for it’s failure… are we dealing now with egos at the expense of the Market? Starting to lose my respect for Crammer and CNBC as a “neutral” source of information.. Does anyone remember the story of “Chicken Little”… I am a day trader (not shorter) making money on the Market in July and August but I am long on FNM…

The Reign of Uncertainty in Financial Markets

Typical information flow as of late or should I say attempts to manipulate the Market… As Mark & Shark I am a day trader (holding a long on FNM as I believe the media is a lot of hype) making great returns (not shorting stocks)… Does anyone know what is with CNBC with their campaign to see FNM fail coupled with Crammer’s non stop soap box for it’s failure… are we dealing now with egos at the expense of the Market? Doesn’r anyone remember the story of “Chicken Little”…

Top Bond Investors Show Interest in GSE Capital Raising with Treasury Involvement

Amen… I am long on FNM but am concerned that the FED’s continue to allow manipulation and rumor mongering of the Market that affects the average investor…I am starting to look into buying franchises and real estate for the long term as my confidence is quickly waning with the Markets and the manipulation…

Fannie and Freddie Debt Offerings

Humm… Would love to agree but once again another opinion supporting the shorting and unwind of the Market... I am long on FNM

Fannie, Freddie: Beyond the Balance Sheets

Nice to see a positive comment with the short folks running a muck lately destroying the market…. I am long on FNM as well (23% of my entire portfolio)… I trust the Government will have several investigations and throw some folks in jail for this continued onslaught of rumor mongering destroying the financial market…

Support for Freddie - Fast Money Recap (8/20/08)

Amen…FRE FNM is the most manipulated story ever told! The higher number of Options being sold for Sept are at $9 and $10 not $2.50