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FNM and FRE bailout bullish or bearish
- Thread starter jlie
- Start date
Quote from newtothis:
shit i'm short citi and waiting a week for it come back to 18 so I can get out without a loss, should I take the hit at 19.07 (and go long) or does anythink we will be back at 18 at the end of the week?
You assume you can get out at 19.07. C will be much higher than that at 9:30 if the news is construed as bullish. Could open in the mid 20's for all we know.
Quote from newguy05:
bias going into monday:
FNM/FRE will be down significantly
Financials will be up big assuming leh stays quiet
Overall market will be up
Happy trading, monday will be wild.
Why would this be good for financials?
A lot of regional banks just took one up the ass. Their preferreds just went to zero and now they have to mark them to market.
"Call your regulator."
Quote from Eliot Hosewater:
Why would this be good for financials?
A lot of regional banks just took one up the ass. Their preferreds just went to zero and now they have to mark them to market.
"Call your regulator."
because this removes one uncertainty that theses companies represented, on the other hand imo this sets us up for an even harder drop later on possibly even this year...
Rumor is someone will dance naked tomorrow on Wall Street tomorrow, not fun at all.
Quote from Eliot Hosewater:
Why would this be good for financials?
A lot of regional banks just took one up the ass. Their preferreds just went to zero and now they have to mark them to market.
"Call your regulator."
Because treasuries are going to get dumped and the yield curve is going to go super steep with the fed keeping rates at 1%. They will replenish capital faster than you can say "replenish."
Quote from NY_HOOD:
nothing bullish about this. we all knew the government was going to bail them out. if they did'nt,it would be world war three. market will revert to the mean. still a very bear market.
CNBC agrees
http://www.cnbc.com/id/26588812
BTW, should this be a kick in the gut to the whole market of preferred stocks?
The implicit has become explicit. Big news.