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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (36969)	7/13/2008 1:17:39 AM
From: energyplay	Read Replies (1) \| Respond to of 219790

Even the estimate of 75 B for Fannie and Freddie would be a bargain. A number of the Ms (money supply) have been static or falling, maybe the FED sees the end of this phase of the crisis. The effects of monetary inflation will moving through the system. If the price of oil can drop under $115, enough of the US economy will stabilize to avoid a deep recession, and recover in mid 2009 I don't think foreign travel will be restricted at this time, there is too much exporting to do.

To: TobagoJack who wrote (36969)	7/13/2008 5:59:27 PM
From: gregor_us	Respond to of 219790

I think it's important to realize that through much of the last 25 years, Freddie and Fannie have been uber leveraged, and have been essentially Mortgage Hedge Funds. This is why people have worried about them for 20 years. That said, their models obviously did not include this kind of a move, downward, in the underlying. Looks like AUG Gold is going to do a ramp-a-rama, at the open. I think government action will more or less dampen the systemic risk way down, and, the losses will be borne by your friend, and mine, Uncle Buck. Gregor