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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (1587)	5/20/2003 2:22:13 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 4905

after all they are backed by the full faith and credit of ... as you know, there is no such formal backing. and even if the informal backing is real, it applies only to the debt, not to the equity. imo the US govt won't do sh:t to keep FNM equity from going to zero if FNM gets close to defaulting on debt payments. and if the govt has to monetize FNM's debt, then i would not be surprised to see the stock get bitchslapped big time. whether shorts can stay solvent long enough to profit from such an event is another question. there may be $100 bills lying in the road, but the road is a freeway and you can get run over if you're not careful.