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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (48834)	4/20/2004 10:25:42 PM
From: TobagoJack	Respond to of 74559

Mish, I think Greensputin just sealed the fate of FNM, and destiny will call Fannie in for a bit of roughing up. Lets's continue our Ruination Watch. Chugs, Jay

To: mishedlo who wrote (48834)	4/20/2004 10:30:06 PM
From: LLCF	Read Replies (1) \| Respond to of 74559

<Did Greenspan just bail out FNM with all this rate hike talk?> How would that work? With that sliver of equity I think it's jobs and income that matter most for FNM, although one never knows what's hidden in that portfolio BESIDES the simple leverage. They need high employment to continue, AND presumably that folks aren't going to have cash flow problems while rates rise, AND that there is liquidity in the derivatives market as rates move around so they can hedge THEIR porfolio, AND that the derivatives they do have are honored by all the other banks, AND the housing boom continues or at least prices don't decline enough to entice owners to walk away, AND that if any of the above is a problem the government will make sure the stockholders remain happy. Anyway, yes Greenspan WILL bail out FNM :)) DAK