Date registered: Apr 2004
Location: The BlueGrass State
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Why did my question go unanswered back in January.
Maybe while the market was at 13K it was not as important.
And again, the folks like Fannie Mae [which started this search] was around 35 when the question was asked and we were discussing the Feds bailout of them and RISK/REWARD and how some stockholders were getting a skate. How The sector was getting bailed at taxpayers expense.
But the consensus was that the FED knew what it was doing and that, even at 40, down 30 in just six months, the bailout of Fannie and Freddie would make everything right.
Nevermind that the Quarterly said "there is more shit coming down the road", or words to that effect. But we needed a show, Fannie was at 34. Let's fix it. So we infused cash into the system. Let's see how it did. It has been six months.
Stock decline as Fannie, Freddie fall sharply
Friday July 11, 10:27 am ET
By Tim Paradis, AP Business Writer
Stocks tumble in early going amid worries about Fannie, Freddie; oil sets fresh records
NEW YORK (AP) -- Stocks tumbled Friday as investors focused on troubles at mortgage companies Fannie Mae and Freddie Mac and watched oil prices climb further into record territory.
Fannie and Freddie at times each lost more than 40 percent on growing speculation that a government bailout is needed. A collapse of the two financiers would cause further shock to the financial system, and trigger more losses to banks and brokerages with significant holdings of mortgage-backed securities.
Global banks and brokerages have scrambled to sell assets and raise capital in an effort to offset nearly $300 billion of write-downs linked to the credit crisis. Citigroup Inc. announced Friday it will sell its German retail banking operation to France's Credit Mutuel for $7.7 billion.
Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.
Last edited by mcbear; 07-11-2008 at 08:34 AM.