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To: hunchback who wrote (38394)	8/5/1999 1:33:00 PM
From: Paxb2u	Respond to of 116764

hunch. Thanks, great charts. Peter :o)

To: hunchback who wrote (38394)	8/6/1999 7:20:00 AM
From: Rarebird	Respond to of 116764

For those that still have doubts as to the financial health of the debt markets... I think the best picture is seen in a Freddie Mac (FRE) or a Fannie Mae (FNM)chart. As everyone knows, these are the institutions that hold most of the US debt, outside of foreigners. Ever since last October, they both have been aggresive buyers, bailing out the crybabies. However, as you can see in the charts, that buying has only deteriorated its financial health. Look at how the FRE and FNM uptrends stop abruptly in October 1998, and have since been flatlining sideways (with occassional spikes and dips). That is until now. The economic environment has changed for the worst, and this will hit both institutions hard. We can see that their 200 day moving averages have been broken (to the downside) with heavy volume and accelerating. This can only spell trouble. The only way to stop them from going bankrupt would be for them to simply stop buying debt. But that would be disastrous for the rest of the debt holders. What a dilemma! Which will give ? Fannie Mae quote.yahoo.com Freddie Mac quote.yahoo.com use the moving averages and you will se what I mean. PS Yesterday's rebound or relief rally will fail and result in lower highs. Then we will decline in an even bigger way and break below S@P 1280 easily.