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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (142413)	8/22/2008 2:10:48 PM
From: 10K a day	Read Replies (2) \| Respond to of 306849

Why don't they start a Dept of Backstop...

To: Sr K who wrote (142413)	8/22/2008 2:17:09 PM
From: XoFruitCake	Respond to of 306849

"Either the Treasury Dept. doesn't read Barron's or Paulson's vacation delayed this response" heh heh, it is neither.. It is just a negotiation ploy between FRE/FNM management (and their backers in Congress) and Tresuary on the term of the rescue. Treasury is using the credit market to force FNM/FRE hand (Combined, they have about 225B? of debt to roll by end of Sept. It will be hell of expensive if they cannot get some major capital inject before the auction of the debt). FRE/FNM management keep saying they don't need capital because Paulson already name his term (stockholder more or less get wipe out through massive dilution, preferred may or may not get wipe out) and FNM/FRE managemet doesn't like it... If they look around and no one else step it, they will have to accept the term.. But before then, everyone just playing their part of the game.. Treasury will keep saying they don't intend to inject money to FNM/FRE. Credit market getting more scared by the minute and FNM/FRE debt getting more expensive... FNM/FRE keep saying that they don't need any money but privately scrambling to try to get anyone interested. MS works on the plan that Paulson want (we really think Paulson need MS advise? He was GS head, I assume he know FNM/FRE pretty well). And in the mean time, we have all the talking head in CNBC talking about the possibility.. It is just a fun show if you are not involve in FNM/FRE..