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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (10848)	9/6/2008 2:49:10 AM
From: Giordano Bruno	Respond to of 71454

Here's some news bloomberg.com

To: Secret_Agent_Man who wrote (10848)	9/6/2008 10:49:30 AM
From: LTK007	Read Replies (1) \| Respond to of 71454

Washington's Fannie And Freddie Plan: Why Now? Liz Moyer and Maurna Desmond 09.05.08, 11:30 PM ET Fannie Mae and Freddie Mac, the mortgage finance giants that fund half the U.S. housing market, are about to become subsidiaries of the U.S. government. The Treasury Department late Friday was putting together final details of a plan to take the two into conservatorship, effectively a government takeover, at a potential cost of tens of billions to taxpayers. Shares of Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) plunged in after-hours trading Friday on word that Treasury was about to announce the plan, which has been discussed for weeks, since Congress authorized Treasury to take extraordinary measures to shore up the two publicly traded companies. A Treasury spokeswoman said in an email late Friday, "We've been making progress" on work with Morgan Stanley (nyse: MS - news - people ), its advisor, Fannie and Freddie's regulator, and the Federal Reserve. "As we've said for weeks, we're not going to comment on market speculation." Reports circulating Friday night have the two companies entering conservatorship, which would nearly wipe out equity holders but preserve the interests of debt holders. The chief executives of both companies would lose their jobs, but the companies could continue to operate, with quarterly infusions of capital from the Treasury depending on losses. Any announcement would come just weeks before the two companies have to refinance $225 billion of mostly short-term notes. Fannie and Freddie sell debt to investors regularly, but concern about their financial position threatens to scare away those needed buyers, many of them foreign banks. A solid federal guarantee would allay investor fears and allow Fannie and Freddie to continue to raise funds as needed. The Treasury, which has been hemming and hawing about a plan for weeks, may have been forced to act now by grumblings overseas. Bank of China, as one example, has been cutting its holdings of debt in the so-called government sponsored entities. Fannie and Freddie have between $70 and $80 billion of capital, a sizable cushion but not enough to calm anxiety. "It's really the perception that they don't have a lot of capital relative to the bonds and assets they own and guarantee. Their level of leverage makes investors nervous," says Guy Cecala, a mortgage industry veteran and publisher of Inside Mortgage Finance. After hours, shares of Fannie Mae dove 25%, and Freddie Mac plunged more than 27% after both had risen sharply before the end of regular trading. Earlier this summer, Congress gave the Treasury the authority to buy $25 billion worth of Fannie and Freddie shares if they falter. That was part of a much broader, and expensive, plan to shore up the housing market. Congress also earmarked $300 billion to refinance troubled mortgages and created a new regulator for Fannie and Freddie, which together control $5 trillion of mortgages, roughly half of the U.S. housing market. An announcement could come before the end of the weekend. Asian markets open during the afternoon on Sunday New York time. In March, the government arranged the rescue of Bear Stearns over a weekend, and announced its sale to JPMorgan Chase (nyse: JPM - news - people ) on a Sunday just before Asian markets opened.

To: Secret_Agent_Man who wrote (10848)	9/6/2008 11:11:16 AM
From: LTK007	1 Recommendation Read Replies (1) \| Respond to of 71454

Wipe-Out!!! Dedicated to those bragging to how much money they are making on FRE and FNM buying at their bottoms eventhough any that listened KNEW this day was coming and coming soon This is also dedicated to Bend Over Ben Bernanke and Armageeddon Paulson for where they are taking over of FRE and FNM is taking this country financial status to, that is to Wipe-Out!. This is also dedicated all we american taxpayyers that will have to pay for the Thugs/Crooks/Scum behind all this crap. This U.S. Government for the rich by the rich and of the rich, to the others Wipe-Out!. Wipe-Out! youtube.com O yes, Obama and McCain BOTH think Bernanke is GREAT!!!!!!!!!!!!!!!!! Ah the evil symmmetry of a One Party Nation(that hoodwinks the DIM into thinki9ng it is a Two=Party System. MadMax p.s. The Spear Report had announced a month ago that their analysis is if U.S. Government took over FRE FNM, that the housing collapse would then equal that of the Great Depression.