wombat 708

Fannie, Freddie: Beyond the Balance Sheets

FRE and FNM go to zero. Why bail out shareholders, either common or preferred? It only adds to the cost. $250,000,000,000 short term is due soon. Why add to the cost. Shareholders took all big gains over 20 years, now some take the losses. That is called capitalism.

10 Financial Entities On the Brink

Nothing wrong with being short. We all should be long and short. i like the dollar so I am short FXE and long UUP. Also like grains ,so I own JJG.
A little late to short most banks. Those with CRE exposure will be next to go lower.
I expect FRE and FNM to go to zero with in 60 days, though feds may keep alive thru november elections.

10 Financial Entities On the Brink

I like DSL, CORS and MBI while I am hedged by being short FRE, FNM and BPOP. I think CORS will survive. Management is buying stoick and the compnay is buying stock. DSL undervalued. Check out its commercial real estate, carried at zero on its book. DSL worth $50 in next cycle and MBI over $30,