Fannie and Freddie: Rising to Big Cash or Another Fake? [View article]
The common shareholders of FRE and FNM will not fail. Why? The FDIC has now explicitly guarantee the debt of FRE and FNM. The GSE managements can issue debt whenever a contingency requires it.
Obama, McCain, and the Credit Crisis [View article]
The common shareholders of FRE and FNM will not fail. Why? The FDIC has now explicitly guarantee the debt of FRE and FNM. The GSE managements can issue debt whenever a contingency requires it.
Fannie/Freddie Rally: A Product of Fed Intervention [View article]
Well, if the FDIC has explicitly guarantee Fannie and Freddie debt then the common stock of these two GSE will survive. Reason, Fannie and Freddie will have the ability to issue debt to pay for any contigency. There is no moral hazard.
Fannie and Freddie: Rising to Big Cash or Another Fake? [View article]
Obama, McCain, and the Credit Crisis [View article]
Fannie/Freddie Rally: A Product of Fed Intervention [View article]