PAUL&$HARK&CO

Fannie and Freddie: 80% Dilution

When government enters,speculators die.
Only those with bonds,secured debt,preffered stock are respected,Chapter 11 or 8 means common stock holders must be canceled completely.
Bad news for FRE,FNM good news for my longs for tomorrow DJIA futures,I will sell those for 250-500 points profit since Friday's close at 11220.Check,mate.

What Will Fannie / Freddie Mean for Monday?

After being short for some time DJIA I closed this position on Thursday and went long DJIA for Monday.
FRE,FNM are gone as common stock investments,many big cap stocks that went bust before made similar rallies as investors are not ready to give up on something they had for tens of years and new greed enters buying when blue chips are down 80%.
If FNE,FRE would be Wal Mart or IBM they would recover after 10-20 years and continue but financial companies have different structures as their assets are not real.Same as many banks went Chapter 8 lately and were liquidated as going business same FRE,FNM will be liquidated as going business of public company.Bondholders will must to wait 20 years to get anything significant of their bonds,preffered shares will be exchanged for bonds but at what rate and what quality of bonds?
Bank holders of senior secured debt are safe the most.
I will sell my DJIA futures tomorrow market on close but not sure if 200 points and I am out or should I wait for 500 points?
DJIA closed on Friday at 11.220 so you judge me by tomorrow.