FNM, FRE a buy now?
- Thread starter blnbr
- Start date
I agree that they are not the same.
AIG is in a dire situation where it is receiving a loan at a significantly high interest rate, and must sell assets quickly at firesale prices in order to reduce the amounts payable to the Government.
FRE and FNM are insolvent institutions with rapidly deteriorating balance sheets, leveraged at ridiculous multiples that make Lehman Brothers look like a well run company.
AIG is in a dire situation where it is receiving a loan at a significantly high interest rate, and must sell assets quickly at firesale prices in order to reduce the amounts payable to the Government.
FRE and FNM are insolvent institutions with rapidly deteriorating balance sheets, leveraged at ridiculous multiples that make Lehman Brothers look like a well run company.
Agree, I sold out of FRE with a huge return but didnt want to risk losing half of it in a single day if FRE decides to sell off like AIG has, I think FRE is headed back below $1.00 where I would be buying again. I think tomorrow it could come down below $1.50, its overbought in my opinion.
