FED takes over FRE FNM LEH and leave shareholder nothing????

Quote from codedeep007:

Today FED tested water, it won't work, Actually FED was a little bit panic after "spreading the rumor".

If the government takes over and leaves share holders nothing, the entire financial system will collapse within 48 hours. Investor will lose trillions of dollars. US will never attract any investment.

Next time, FED will try to buy out shares at current level, the question is which FED official is going to spread the rumor?
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Fannie Mae was about $60 a share:
http://finance.yahoo.com/q/ta?s=FNM&t=2y&l=on&z=m&q=l&p=&a=&c=
It has 975.41 M shares outstanding:
http://finance.yahoo.com/q/ks?s=FNM
So it had a market cap of: $58.52 billion.

Now Freddie Mac:
Also about $60 per share:
http://finance.yahoo.com/q/ta?s=FRE&t=2y&l=on&z=m&q=l&p=&a=&c=
646.72 M shares outstanding:
http://finance.yahoo.com/q/ks?s=FRE
So it had a market cap of: $38.8 Billion.

So, a total loss of $97.32 billion would melt the US financial system?
Sure it's a shock, but not a colapse.

True, Freddy and Fanny hold or insure $5 trillion of mortgages, but every cent is backed by the gov't.
 
Quote from codedeep007:

http://news.yahoo.com/s/ap/20080711/ap_on_an/mortgage_crisis_analysis

There's a range of things the government can do short of a takeover. It could lend money to the two companies, it could buy their stock, it could make the implied government guarantee an explicit one with a big line of credit.

These are the kinds of things, presumably, Paulson and Bernanke will be exploring in the coming days in "working this issue very hard," as Bush said.
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that's what America needs is more frickin credit...

banks count borrowed cash as reserves. gee I wish the casino would extend to me such terms
 
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