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Strategies & Market Trends : January Effect 2003 -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (541)	6/10/2003 11:33:02 AM
From: Londo	Read Replies (3) \| Respond to of 666

I'm long a couple ZB's from last Friday, this Freddie Mac news didn't hurt the equity at all.. something makes me think that FRE is the next Enron.. I'm just thinking of their derivative portfolio, and who in their right mind would extend credit to them? I think it'd be more profitable for traders to take down the whole financial system and start going really short on the markets if you started attacking FRE first, just like creating your own version of LTCM. And unlike last time, Greenspan won't be able to bail you out by lowering interest rates since Fed Funds are already telling you that he's going to drop them 0.5% anyway! These blowups don't happen overnight - but a month or two, however.. The S&P 500 is holding up pretty nicely as a result, but if there is ANY sign of any upcoming implosion in FRE, this should hit the financial companies pretty hard. This would probably take down the S&P 500 somewhat, and I'd expect some sort of currency exodus until this is settled.