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

To: carranza2 who wrote (42316)	11/5/2008 5:41:32 PM
From: TobagoJack	Respond to of 220242

jen also has a sh*tty track record on the earlier drubbing of dollar used to read him

To: carranza2 who wrote (42316)	11/5/2008 6:41:12 PM
From: rich evans	Respond to of 220242

A lot of the money is now being invested and not spent. So much depends on the investments in prefered stock at 5% dividends/interest. It is really a loan as the preferred stock is callable. But for accounting purposes, it is treated as capital which is what is supposedly needed. But for FNM and FRE, they now have the government guarantee so they don;t need capital. They can use all this money to loan for mortgages and guarantee their securitizations. With losses of 300 bill, FNM and FRE could earn their way out in 5 years as they together net about 60 bill in net interest income on their 2 trill of loans at NIM of 3%. Ain't it a wornderful life. Rich