Putting Freddie Mac, Fannie Mae into perspective
Submitted by sobrdup on Sun, 07/13/2008 - 17:41
I ran across an article which I feel is good at potentially putting a Freddie Mac and Fannie Mae bailout into perspective.
http://freethemarketman.wordpress.com/2008/07/11/the-global-...
Excerpt:
And so it begins. Or rather, it actually began years ago, back when people began to think that house prices always go up in double digits. But it will be interesting to see how things develop here in Australia. In the US and the UK, the mortgage lenders fell first, then the builders, then the banks, and finally the consumers.
The two big pillars of the US mortgage system – Fannie and Freddie – are surely doomed, too. First US Fed chairman Ben Bernanke told Congress both are well capitalized. Haven’t we heard this one before? ...
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I hope they do fail
Fortune Favors the Bold
keep in mind, these companies were creations of the federal government. The government should get out of the mortgage business.
Fortune Favors the Bold
Equity is one thing, but Fredie and Fanny will not be allowed ..
to fail.
Personally, I will be doing the following with Freddy, and maybe after some more research with Fanny as well.
Start out with very small positions and every week add a little more on the dips.
I have always avoided the financials like the plague. This has been a godsend as of late, but there were times when I had an itch here and there.
Personally, I think they should go away but they won't.
So if you don't get what you want, smart people find a way to profit anyways.
WAHOR!!
WAHOR!!
http://www.dailypaul.com/node/48994