Jpm down 6.5%
leh down 5.75%
mer down 3.90%
c down 3.40%
bac down 3.10%
fannie down only 2.00% and freddie in the green.
the bottom has been reached - look forward to a rally tomorrow when the news comes out that the 3 billion in bonds have been sold.
shorting days are over. Time to go long. There's no upside in shorting any longer. Like all financials, it will not re-test the july 15th lows.
want to make money shorts? There is lots of upside going long, and very limited upside being short.
the worst case scenario is they go under, which will take at least 2 years. Best case scenario is the recent moves by management and the feds will turn the tide, and the stock price will sky rocket because a lot of money is sitting on the side just waiting to get in at the right momment. Just look at the bets on the table by the big boys. There's a lot more accumulation going on than selling.
right now you can get in at super discount price, and eventually fannie will be sending you beautiful dividend checks for the rest of your life. Just think of the yeild.
and all you shorts know it!!!
if you're only capable of shorting equities? Then its time to find a new target with a better risk/reward proposition.
making money is something we all want to do - and the survival of this company is critical to the american economy.
if it goes down, look forward to misery for all. Believe me, your friends which lose their homes and jobs will not want to hear you bragging about how you made a few dollars helping to take fannie and the whole american economy down. I don't need to spell out the whole story. You should be smart enough to realize the implications.
it's time to support this company and do the right thing. It's time for america to rally for what is most important to them..
life, liberty and home.
ghezzzer boy and herpes boy,
You need to understand the political motivations and implications.
Read this article http://www.istockanalyst.com/article/viewarticle+articleid_2497439.html
and try to comprehend...
"Too bad for Gross and Ackman, Paulson has another point of view. Fannie and Freddie can reduce their portfolios and the FHA will pick up the slack. What Gross and Ackman lost sight of is that many banks own GSE equity (mostly preferred) and the failure of GSE equity would reduce banks’ capital adequacy. Paulson and Bernanke don’t want that to happen."
REDUCED CAPITAL ADEQUACY MEANS THE BANKRUPTCY OF THE WHOLE AMERICAN BANKING SYSTEM.
I've beaten it to death. Waste of time making blind shorts set on running the country into the ground understand.
I guess none of you will be moving out of your parents basements anytime soon. To bad for them, but good for us. Blind negativity should always be six feet under.
I loved your article until the end. Fannie's problem is its balance sheet not the stock price. If the stock price tripled today, it would not change Fannie's spot. The only difference would come if they issued more stock at the higher price, which isn't exactly the greatest reason to be a long.
That being said, the short term risk/reward scenario favors being a long.
The balance sheet will improve as present foreclosures are sold off, and new foreclosures are averted.Compensation will also be coming from the banks which originated the loans unlawfully.
Once the tide starts to change, the massive write-downs will turn into gains.
Eventually Fannie will become very profitable again, and the dividend will be increased. Reducing the dividend was only a temporary measure, not a permanent one.
Shorts keep talking about the common stock going to zero, but yet the people you need to listen to "THE LAWMAKERS" have clearly indicated they have absolutely no intention of taking the GSE's over.
It's become a dead argument, but hopefully my post will give some shorts a reason to consider all options.
Mr. ALL CAPS, FNM tanked for 2 weeks while the market and financials soared!
NOW, it's down with the market.....so.....what direction works for FNM?
Dividend checks? Yield? What the hell are you talking about? FNM bailed on the dividend last week.
BTW, FNM will not "go under"....our Government guaranteed that...BUT the common stock will be gone....a big zero.
Do you understand the difference?