rip fannie and freddie

[hi_im_god]

well...not really.

but the 70 year experiment of two hybrid public/private companies comes to an end this weekend.

i guess a rational decision but scary as hell.

Originally Posted by hi_im_god

well...not really.

but the 70 year experiment of two hybrid public/private companies comes to an end this weekend.

i guess a rational decision but scary as hell.

The markets in Europe explode while they laugh at Bush.
Another government bailout funded by taxes.
It really is funny. The free market will take care of itself,
no matter if people lie, steal and cheat.
BS.

We have been harsh critics of Europe for just this type of
government intervention. Calling them socialist and such.
And we do the same thing.

[dalakhani]

The funniest thing is that the US government is buying in at the perfect time and will end up making a significant profit.

And how about the quote by Palin? She really has a grasp on the situation doesnt she. According to Mrs. Palin, Fannie mae and Freddie Mac had "gotten too big and too expensive to the taxpayers". Ummmm....Fannie and Freddie were privately funded until yesterday.

This begs the question...how do they finance those igloos up in that small town of hers?

Seriously though- shouldnt our would be vice president understand GSE's and have even the faintest clue on how they operate?

And let me add, we have idiots on here that are more concerned about Obama misspeaking than about the vice president not having a clue about key components to policy both foreign and domestic.

[philcski]

Caused quite of heartache in my markets today, that's for sure.

The gindaloons in government don't really understand the markets and corporations, do they?

Originally Posted by philcski

Caused quite of heartache in my markets today, that's for sure.

The gindaloons in government don't really understand the markets and corporations, do they?

Tax payers bailing out Wall Street.
Thats the ticket.

There is a point where the government has to
let people who are stupid and take enormous risk
suffer. All the investors in these lenders were getting
ridiculous 45% interest and it bottoms out, the government
steps in and bails them out.

Necessary, but a trend that is not good. Make no mistake,
we all pay for this in the long run. So we are financing
stupid risk taking.

And the Republicans delegates cheer when McCain says
they will take back Washington and give it to the people.
Who in God's name held the presidency for the last 8 years,
and the Congress for the last 5 years?
Bunch of suicidal lemmings.

Make up some bogus boogie man, WASHINGTON, run by
Republicans... and they cheer that they are taking back
what they already owned. I dont get it.

[Cannon Shell]

Originally Posted by pgardn

Tax payers bailing out Wall Street.
Thats the ticket.

There is a point where the government has to
let people who are stupid and take enormous risk
suffer. All the investors in these lenders were getting
ridiculous 45% interest and it bottoms out, the government
steps in and bails them out.

Necessary, but a trend that is not good. Make no mistake,
we all pay for this in the long run. So we are financing
stupid risk taking.

And the Republicans delegates cheer when McCain says
they will take back Washington and give it to the people.
Who in God's name held the presidency for the last 8 years,
and the Congress for the last 5 years?
Bunch of suicidal lemmings.

Make up some bogus boogie man, WASHINGTON, run by
Republicans... and they cheer that they are taking back
what they already owned. I dont get it.

You dont teach economics do you?

[dalakhani]

Originally Posted by philcski

Caused quite of heartache in my markets today, that's for sure.

The gindaloons in government don't really understand the markets and corporations, do they?

They sure dont Philly and they should just keep their mouths shut instead of trying to grandstand all the time. During Senate testimony this past spring you could just watch Bernanke's face in response to some of the questions. If facial expressions formed actual words, his was saying " you ****ing moron, how is an elected official asking a question as stupid as that."

On another note, interest rates should be going through the floor now that the fed gov has taken over the GSE's. The spreads between mbs and treasuries should close rather dramatically in the coming days.

Interesting that the dollar continued to roll against euro and pound and that commodities continue to slide.

[philcski]

Originally Posted by dalakhani

They sure dont Philly and they should just keep their mouths shut instead of trying to grandstand all the time. During Senate testimony this past spring you could just watch Bernanke's face in response to some of the questions. If facial expressions formed actual words, his was saying " you ****ing moron, how is an elected official asking a question as stupid as that."

On another note, interest rates should be going through the floor now that the fed gov has taken over the GSE's. The spreads between mbs and treasuries should close rather dramatically in the coming days. Interesting that the dollar continued to roll against euro and pound and that commodities continue to slide.

Logically, that would make sense. In truth it didn't happen- Treasury spreads actually went DOWN today despite the US Government theoretically becoming more "risky". ABX (an index which tracks MBS pools) AAA tranches only improved by a half a point, so about 5bps a year, and are still trading in the mid 40's dollar price.

Meanwhile, FRE and FNM stock plunged to 1/8th of their previous value, wiping out the remaining $10 billion of market cap- hitting the fine citizens of the United States directly in their 401k and mutual fund plans (which pretty much every "conservative" fund owned). Additionally, all CDS contracts written on FRE and FNM triggered a credit event with close to 100% recovery, which in simple math means if you bet one way or another and were RIGHT, you lost all the present value of that contract, so all of Wall Street took major hits today.

But they're coming to save us!!!