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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (9867)	8/22/2008 3:56:20 PM
From: Hawkmoon	Respond to of 33421

Pimco's Co-CEO El-Erian has pointed out that outside of a global economic collapse, the rescue of FRE and FNM and other financial entities will be Inflationary John.. apparently the UK hit zero economic growth and expect negative growth for at least the next two quarters. Will Europe precede the US into recession? Methinks it will.. and that will be hard on the Euro versus Dollar. Also, apparently Treasury understands they can't just wipe out FRE/FNM shareholder equity and think it won't have an impact on the economy and overall markets. biz.yahoo.com Any effort by the Treasury Department to backstop Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) would seek to maintain the companies as shareholder-owned enterprises, a source familiar with Treasury thinking said on Friday. That should set us up for a nice rally on Monday, if true. Hawk