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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (5646)7/6/2001 3:05:59 PM
From: Ilaine  Read Replies (3) of 74559
 
Jay, Fannie and Freddie are in the news right now because private lenders are claiming they're getting unfair advantages from government subsidies. If the Director of the CBO is correct, then Fannie and Freddie might be forced to reduce their earnings in the future.

public.wsj.com

I've got a hunch that the loud squealing you hear is louder now that Bush is prez because he's Republican, in theory more receptive to free market arguments. If I am right, then both corporations are getting extra spotlight just due to the buzz factor. Buzz as in yadda-yadda - some things get talked about because they are being talked about.

There's no hurry to buy puts, IMO - watch the unemployment numbers and the default rates. You are probably right that there's trouble ahead but if you're too early, you'll just waste money. Not that I ever bought puts, but I have read a lot of posts about being too early with the good ideas. Outright shorting isn't a bad idea if you do that type of thing, but if you're right, there's no reason to do that until the decline starts, is there?

I was just reading over some economic statistics from the Great Depression - housing held on pretty well for a couple of years. My guess is that housing is a lagging indicator.

BTW, I don't think Bush is all that receptive to free market arguments.
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