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.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (6071)	5/10/2004 10:47:11 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

WOW. Little joe ======================================== Interesting HUH? Message 20114950 I am still trying to figure out the angle. All kinds of possibilities, some might not make much sense in combination with each other but here goes: 1) FNM hedgebook is about to implode (or already has) and the FED knows it 2) The FED is finally tired of FNM creating money 3) FNM keeps going to lower and lower quality borrowers and the FED does not like the risk 4) Bank profits are heading south and if FNM can be eliminated then Banks will get to make those loans instead of FNM. The FED wants to protect bank profits during the next downturn. 5) The FED is full aware that if they agressively hike rates that this economy will go to hell within a year or less and rates will be coming back down. Another monster whipsaw on the 10 YR and FNM is F'd. Thoughts? M