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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (23735)12/23/2004 11:26:39 AM
From: Ramsey Su  Read Replies (2) | Respond to of 110194
 
A question for all regarding FNM.

Forget about the negative side for now, think about the potential "positive" side.

I keep reading and hearing that this fnm problem is related to fnm and will have no impact on the overall mortgage market. So far, I have not been able to find anything that substantiates this theory. In fact, I don't see any way that it will not.

If fnm is required to raise capital, it is most likely that they need to do a combination of issuing more stocks and shrinking. Someone has to step up to the plate to replace this player who had been responsible for 1/4 of the mortgage market. How is that going to work out?



To: russwinter who wrote (23735)12/23/2004 11:46:13 AM
From: SeaViewer  Respond to of 110194
 
No. But we can check the reserve every Thursday to see if they added any permanent. Last week they didn't add any permanent. If the reserve (this afternoon) increases, then they added this week.



To: russwinter who wrote (23735)12/23/2004 4:41:44 PM
From: SeaViewer  Read Replies (1) | Respond to of 110194
 
Feds hardly did any monetizing from 12/15-12/22. That explains the no action mode in the coupon pass site. I was really surprised since they usually do big coupon passes before a major holiday and/or end of year.