John Pitera's Market Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Pitera who wrote (9851)	8/20/2008 1:57:52 PM
From: Hawkmoon	Read Replies (1) of 33421

His prediction over the fate of Fannie and Freddie came after investors dumped the two groups’ shares on Monday after reports suggested that the US Treasury may have no choice but to effectively nationalise them. Re-read the Economist issue that focused on FRE and FNM today (July 19th issue).. Seems that most of their mortgages have a LTV of 68%, which suggests they could handle a 30% deflation in home prices on the mortgages. What the article seemed to focus on was the toxic CDOs and derivative contracts the GSEs enter into and seem to be weighting down upon them. Without them it would seem that the GSEs would be fairly well capitalized.. I wonder if there is a solution being worked out to lift those liabilities from their balance sheets. Certainly, I would think something's going to come out of this meeting today between the GSEs and the Feds.. Hawk

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next