I have ALL eggs in this basket. My 401k is 100% in. My IRA is 100% in.
I am terrified and wish I had not done this. But now I have lost sooooo much money in the last 10 days that I just can't stand to get out and have no chance to get it back. This is really devastating me.
I feel like I am in the same boat but not 100%. Not even 50%! What are you doing? The bright side is it is deferred income and the greedy idiot government/treasury looses to.
Sentiment: Strong Buy
I should also point out that I am also more vested in this than I care to be... about 20% of my assets. I am daily tempted to buy more, selling other holdings to do so, but stop myself. Even though the upside is there, if it were to all go away at least i'd still have the others.
To quote Nici Lauda,
"I accept every time I get in my car there is a 20% chance I could die, and I can live with it, but not 1% more. "
hmmm... how did you get ur 401K to buy FNMA ? isnt that only selected funds based on your company's direction ? I know you've been around in this board from last year.. if you got in from last year (sub 1 ) then you shouldn't be freaking out.... do your DD, below dpell shared key items .. and there are many on top of it... one thing i know for sure that if FnF were to be demolished, then Gov will add 5 Trillion debt that just like 30% in one stroke of pen.... and biggest Bond buyer like PIMCO already went LIVE that they wont buy any MBS that is not backed by FnF... try that from Private MBS - it will be just another Bear Stearns case... these politicians know these facts, they just so corrupted and want to get money from WS while creating fiesta and trade this stock themselves.
white corona, if you wind down FnF they still exist legally until all of their assets and liabilities are resolved, they dont magically get transferred over to the treasury.
PIMCO says they wont buy mortgage bonds that are not backed by the govt, I believe you to be sincere, however just like many on this board somehow get the facts twisted.
Smaller companies like one i used to work at has a simple IRA instead of 401k. it had the same tax rules more or less for small business and allowed full market trades.
they tried to get me to roll it over at my new job.
I continue to pay the $25 a year management fee to keep a non-contributing simple IRA open, and i simply use some REIT's to earn cash into the account to buy other holdings with. I haven't contributed to it in 7 years now and i've quadrupled the value since i left the company. my fund-locked 401k meanwhile sits at a whopping 6% gain. If it wasn't for the match, i wouldn't be in it....
poet Rudyard Kipling
#21 on top 500 poets
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Poems by Rudyard Kipling : 143 / 544
« I Keep Six Honest...
In Error »
If you can keep your head when all about you
Are losing theirs and blaming it on you;
If you can trust yourself when all men doubt you,
But make allowance for their doubting too:
If you can wait and not be tired by waiting,
Or, being lied about, don't deal in lies,
Or being hated don't give way to hating,
And yet don't look too good, nor talk too wise;
If you can dream---and not make dreams your master;
If you can think---and not make thoughts your aim,
If you can meet with Triumph and Disaster
And treat those two impostors just the same:.
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build'em up with worn-out tools;
If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings,
And never breathe a word about your loss:
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"
If you can talk with crowds and keep your virtue,
Or walk with Kings---nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much:
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And---which is more---you'll be a Man, my son!
Well, I can give you some insight from my 23 year back-ground in mortgages to try and alleviate some of the pain but I'm not sure it will make you feel much better given the statements you have made above. That being said, Let's go thru some facts:
1) IF FnF get extinguished, the 30 year mortgage goes away, leaving 60%-75% of the country no place to REFI or PURCHASE a HOME with little or no money down in an economy where college educated students are struggling to get a job....scared yet? READ ON....
2) IF FnF get extinguished, the economy WILL SPIN into a recession, NOTHING OF THE LIKES OF 2008!!! In fact, 2008 will seem like a walk in the park compared to what this would be....cause Fannie and Freddie were still lending back than..IT WOULD BE MONUMENTAL TO THE POINT 75% of our portfolios would be wiped out....simply, without a healthy HOUSING sector, as you saw in 2008, this country and economy WOULD SINK!
3) Elections are upon us and if you think Obama doesn't have a plan to make it LOOK LIKE he saved us by releasing the conservatorship, and building up the economy, you are fooling yourself....he's not going out by watching ANOTHER RECESSION HIT just as he walks away from the presidency.....he's already one of the worst presidents we've had, and he would be PUT UP ON THE HILL as public enemy number 1 if he leaves office with the SAME SHAMBLES OR WORSE, than it was when he got here! HE KNOWS THIS!! Remember his words when he was campaigning that bright sunny day in September in 2008, when Lehman Brothers was going under? He said, "IF Fannie Mae and Freddie Mac were to go under, it would be disastrous for the economy as we know it!"
4) Johnson/Crapo Bill-- is exactly that....a bunch of CRAPO with no chance of passing!
5) Finally, the court cases... with Fairholme, the parties have agreed to bring back their discussions to court on July 11th, meaning they are talking now and that's directly because Cooper is beating the hell out of the government. STAY TUNED
Sentiment: Strong Buy
1.) The proprosal for creating FMIC would ensure the 30 year mortgage stays in tact. No one wants the 30 year to go away (except for some libertarians).
2.) Why would the economy spin out of control? They are proposing a transfer of the mortgage portfolio to the newly formed agency. Plus its would be phased out over 5-8 years.
3.) You think Obama will release conservatorship? Why has he apointed a new housing secretary who wants them eliminated? His treasury staff says fannie/freddie are dead. He can look like a hero by getting rid of the government agencies that relied on taxpayers to save them. The average american has no clue what fannie/freddie are and they don't care either.
5.) Assuming the discovery goes as planned. Watch for Sweeney to allow some documents to not be released as per the treasuries request. If she allows this, the case will become 100x more difficult to win.