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To: Sam Sara who wrote (54078)	1/4/2001 12:52:59 PM
From: robnhood	Respond to of 436258

I assume that these types of stocks were bought up , (a) in anticipation of a rate cut, and (b), as a flight to safety. The cut is now in , and tech is once again safe (ho ho ho). How's that for a guess. The other answer is ---- more sellers than buyers.

To: Sam Sara who wrote (54078)	1/4/2001 1:12:19 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

<<I am puzzled by weakness of FNM and FRE here>> 2 things: 1) FNM/FRE were considered (wrongly, IMO) "defensive" plays and therefore relatively attractive during a slowdown. Therefore Fed Funds cuts render them less attractive than other financials, especially banks 2) There is a deep suspicion among many that due to their astronomical leverage, FNM or FRE may be in trouble with the speed of the current slowdown. BubbleBoy's panicky rate cut yesterday only reinforces that opinion (ie, that someone needed help...FAST!) and that revelation was news to many of the Baghol...ERRR, SHAREholders of FNM who thought they were getting a steady dependable play. The strange press release that Tippet posted affirming the adequacy of FNM's asset reserves further supports this theory.

To: Sam Sara who wrote (54078)	1/4/2001 1:58:50 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

the 'reason' officially cited is that there's now a danger of mortgage prepayments with rates going lower, and that will hurt their margins. imo it is a reflection of money shifting from one form of trash (government insured variety) to another. there are also scattered signs of the real estate bubble fraying at the edges (the rate cuts may or may not reverse that). a big top marker in commercial real estate was the recent sale of the Rockefeller building for $700m. below the original asking price.