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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (82160)	7/6/2000 7:12:25 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 132070

MB or anyone, My daughter is looking for a good growth fund for her IRA. Does anyone know of one? Joan

To: Knighty Tin who wrote (82160)	7/7/2000 9:52:28 AM
From: Thomas M.	Read Replies (1) \| Respond to of 132070

Al Gore's campaign treasurer serves on Fannie Mae’s board and has Fannie stock options. insightmag.com Fat Fannie Mae and Freddie Mac Caught in Spotlight It turns out that a respected Washington pro-free-market think tank may not be so free after all. The Alexis de Tocqueville Institute, or AdeTI, accepted $25,000 from the Fannie Mae Foundation in 1996, and chairman Gregory Fossedal’s Democratic Century Fund accepted $12,500 from Fannie Mae in 1998. This occurs at a time when other free-market groups, such as Citizens Against Government Waste and the National Taxpayer’s Union, have linked arms to question the special benefits enjoyed by the two government-sponsored housing enterprises, or GSEs. Fannie Mae and Freddie Mac were created by Congress to help provide affordable housing (see “Home $weet Home,” May 1). Because of this role they do not pay state or local taxes nor are they required to register their securities with the Securities and Exchange Commission, an endeavor that usually costs corporations billions of dollars. They are listed on the New York Stock Exchange while enjoying a $2.25 billion line of credit to the U.S. Treasury. Fannie and Freddie lately have been subject to congressional scrutiny, especially by the House Banking and Financial Services subcommittee on Capital Markets, Securities and Government Sponsored Enterprises, chaired by Louisiana Rep. Richard Baker, whose bill, HR3703, would require stricter oversight. Congressional critics fear that if the economy turns sour, taxpayers might be on the hook for the GSEs’ bailout, much like the savings-and-loan crisis 10 years ago that cost taxpayers $500 billion or the plight of another GSE, the Farm Credit System, that taxpayers rescued with $4 billion in the late 1980s. In light of the flow of money from Fannie to AdeTI and the Democratic Century Fund, it strikes some as an odd coincidence that Fossedal published an op-ed in the Washington Times in late June defending Fannie and Freddie’s stunning successes. Fossedal’s championing of Fannie and Freddie contrasts with his general stance on economic policy. In a 1997 op-ed piece in the Wall Street Journal, Fossedal championed the flat tax and derided loopholes and tax breaks as bad policy for economic growth. Fannie and Freddie enjoy those very same tax breaks that, according to estimates by the Congressional Budget Office, amount to a government subsidy of $6 billion. Fossedal tells news alert! that Fannie Mae did not influence his op-ed. But at a May hearing, Fannie Chairman Franklin Raines was embarrassed by his own lobbying efforts when House Banking Committee members showed him letters from their constituents protesting the Baker bill and the recent criticism of the GSEs in Congress. The trouble is, some of the letters were from constituents who had died. Despite their lobbying efforts, Fannie and Freddie won’t escape the spotlight any time soon. Presidential hopeful Ralph Nader is making waves with his rising poll numbers, and he dubs Fannie and Freddie “poster children for corporate welfare.” Vice President Al Gore, who could be hurt by Nader’s challenge on the left, has been mute on the issue. It doesn’t help Gore either that his campaign treasurer, Jose Villareal, serves on Fannie Mae’s board and has nice, fat Fannie stock options.

To: Knighty Tin who wrote (82160)	7/7/2000 3:57:06 PM
From: Sanjay Mazumdar	Read Replies (2) \| Respond to of 132070

MB, Thanks for the reply. I am still trying to digest what you wrote <g>. I am asking for some clarifications trying to understand the options game. (BTW do you know a broker who allows options in an IRA. I currently use Fidelity and Schwab.) In the maximum income play in VERT how would you unwind if say the stock is $100 1 year from today. For example assuming I now buy 100 shares and sell 1 covered call at 40. Then how do I close out my position. Do I sell the 100 shares and buy a call? If that is so how do I buy a call at $ 40 if it is not available since the price of the stock is $100. With Vignette what would be an optimal exit strategy. Would you let the options contract expire or would you trade them before expiration depending upon what the market did in the interim. One last question if I wanted to play Allaire for maximum capital appreciation how would I do it? Thanks in advance Sanjay