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Federal Home Loan Mortgage Corporation Message Board

  • emptypockets508 emptypockets508 Dec 27, 2009 7:22 PM Flag

    Reason behind uncapping Feddie and Fannie

    The reason to uncap Freddie and Fannie is not because the government think they need more money to back losses. The current current line of 200 billion is seen to be enough by most analyst. They dont think freddie will even need it all. They uncapped freddie and fannie because they want to give confidence to private investors when the government exist their buying spree. Thats all.

    The move assured freddie and fannie's existence for awhile. thoughts?

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    • The reason they uncapped it is because they had until Dec 31st 2009 to do so without congressional approval.

      The administration simply wanted to again have the flexibility to do whatever the hell they "need" to do in light of the financial crisis without seeking congressional approval.

      This is not huge news, it's not a big surprise - FRE/FNM share price will bump up on Monday, but it'll continue to be a rocky ride in the coming months, especially as the administration comes up with new programs to stem foreclosures using FRE/FNM.

    • Read today's news,FRE FNM would have most likely been dissolved upon a house and senate vote.You may as well try to make as much money short term here before the this disaster get's shutdown.I am not happy but I'll go with the flow and day trade some shares tomorrow.Dems going to get slaughtered next election.

    • lol..i mean "exit"

      • 1 Reply to emptypockets508
      • I don't find any negative in their 'support' -
        They 'never' say they aren't removing c-ship within this timeline -
        They 'never' say that FRE is going BK -
        They 'never' say that RE values are going to zero -

        All they are doing is showing govt isn't going to let FRE fall on their face -
        Also people show feel that's a good move (support) and the bashers are just turning the spin to their direction (that's what they do) -

        Will we get a bump up to 2-5 dollars - no way
        Will we get a bump up to another 10-30 cents - VERY likely

        AND to answer everyone's question - why didn't you give CEOs just shares -- can't issue any other offers - that's it!
        AND does ANYONE really think...lets give them raises and THEN lets just let them go BK -- ahhhh...that will make a lot of sense to only bashers trying to make a killing going short on a stock that's barely above a buck....(think of it...MOST you can make is a dollar and change going short....MOST you can make going long....who knows but the upset doesn't have a 'cap' on it at 1.30 does it!!!)

        Frank (vegas)

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