Fannie & Freddie Back-Stopped!

Dollar "bounce" is over with.
Time to buy oil and the energy sector again . . . especially as Beijing's Paralympics comes to a close on Sept. 17th and the 5 surrounding provinces crank their industrial complex back up!

:)
 
If the stocks are still trading on Monday, I think the trading action will be even crazier .... maybe a billion share day for each company?

Quote from Steelhead:

this is a wild trade
More...
 
The fact that they are changing management seems pretty telling. if shareholders were going to be bailed out you would expect the management putting resistence and that would include their jobs. that fact that they didnt shows that the government set the tone. I'm quite surprised these stocks are only down 15%, perhaps they are being hopeful its a rumor
 
I think someone knew of what was happening today with the financials as most of the day they traded higher. What happens this weekend is anyone guess. Funny to see FRE and FNM down over 10% and the rest of financials trading higher. Six months ago if someone said FRE and FNM had to be bailed out you would have thought they were crazy. Who knows what's next.
 
I agree that it's surprising the shares aren't down more.

Repost from earlier about reasons why the stocks are still well above zero:

(1) Specific details of bailout unknown.
("creative use of Treasury's new authority to make a capital injection")

(2) FRE and FNM bailout is just a rumour at this stage, and not confirmed.

(3) Blind hope that the shares may have value.


Quote from Daal:

The fact that they are changing management seems pretty telling. if shareholders were going to be bailed out you would expect the management putting resistence and that would include their jobs. that fact that they didnt shows that the government set the tone. I'm quite surprised these stocks are only down 15%, perhaps they are being hopeful its a rumor
More...
 
I disagree. If the WSJ article was known earlier in the day, then it follows that FRE and FNM would have been down in regular hours today. FNM was up 9% at 4pm.

Quote from S2007S:

I think someone knew of what was happening today with the financials as most of the day they traded higher. What happens this weekend is anyone guess. Funny to see FRE and FNM down over 10% and the rest of financials trading higher. Six months ago if someone said FRE and FNM had to be bailed out you would have thought they were crazy. Who knows what's next.
More...
 
Quote from m22au:

I agree that it's surprising the shares aren't down more.

Repost from earlier about reasons why the stocks are still well above zero:

(1) Specific details of bailout unknown.
("creative use of Treasury's new authority to make a capital injection")

(2) FRE and FNM bailout is just a rumour at this stage, and not confirmed.

(3) Blind hope that the shares may have value.
More...

what do you think? would you buy any and hold this weekend
I got some fre on the way back up
 
Short the Dollar
Long Commodities & Energy

ECB gets tougher on ABS (Asset Backed Securities) while the Fed sucks up ('back stops') Fannie & Freddie's $12 trillion in outstanding home mortgage debt.

Financials will bounce big, then what???
 
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