Silicon Investor (SI) -- The First Internet Community

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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (126793)	10/2/2001 10:47:00 AM
From: Tradelite	Read Replies (2) \| Respond to of 436258

I see. Maybe would be a good idea not to get too short in this stock. NYC is issuing some mega-buck bonds right now to fund rebuilding after the Sept. 11 debacle----reports indicate great demand for those securities. Same thing with mortgage-backed securities. Also, FNM split the stock in 1996. Wouldn't be surprised if it does it again soon.

To: Earlie who wrote (126793)	10/2/2001 11:10:23 AM
From: John Madarasz	Respond to of 436258

exactly Earlie...that's a "long termer" that measures to about 59 or so. Regards, john

To: Earlie who wrote (126793)	10/2/2001 1:19:25 PM
From: yard_man	Read Replies (1) \| Respond to of 436258

and the Fed doesn't control long rates either. As they move up (likely from here and the economy sours) mortgage issuance has to slow. Fewer people can afford to "move up." Earnings growth for FNM is dependent on increasing refis or new mortgages OR a widening of the spread between what they borrow at and what they lend at. There is no way that both of these (spreads and increased biz) can get better from here. I guess there is no target reserve which they have to carry -- maybe they can just keep issuing bonds anyway without more mortgages, but that would just put things further out of whack when spreads start to head the other way soon.