Freddie

TheBull284 · 09-06-2008, 05:31 PM

"Investors are saying, 'We want to see [the Treasury] in there with us,'" The Treasury will have to "swim in the pool, not just be a lifeguard,"

I like that quote. A little confused about Friday. The treasury is in the process of figuring out the final plans (bailout) for the GSEs. But if a plan is coming together then why sell-off. One would think that if the GSEs are getting bailed out then we would at least see consolidation or a little buying. So why the major sell-off. I understand the entities are in trouble.
Is it just because rumors are out there of changing management at the GSEs.
Perhaps the answer is the following:
"Among the issues with which Treasury has been wrestling is whether to make an investment at such a low price that shareholders are effectively wiped out."
I'm guessing the low price is going to drive down the share price. In that case, GREAT. We will see the stock take a hit and in a few wks will see a push up like two wks ago.

TheBull284 · 09-07-2008, 01:15 PM

Per Bloomberg, they are bailed out ("government seized control") and common shareholders will not get wiped out.

Shootanappleoffmyhead · 09-07-2008, 03:05 PM

Quote:

Originally Posted by TheBull284

"Investors are saying, 'We want to see [the Treasury] in there with us,'" The Treasury will have to "swim in the pool, not just be a lifeguard,"

I like that quote. A little confused about Friday. The treasury is in the process of figuring out the final plans (bailout) for the GSEs. But if a plan is coming together then why sell-off. One would think that if the GSEs are getting bailed out then we would at least see consolidation or a little buying. So why the major sell-off. I understand the entities are in trouble.
Is it just because rumors are out there of changing management at the GSEs.
Perhaps the answer is the following:
"Among the issues with which Treasury has been wrestling is whether to make an investment at such a low price that shareholders are effectively wiped out."
I'm guessing the low price is going to drive down the share price. In that case, GREAT. We will see the stock take a hit and in a few wks will see a push up like two wks ago.

They bail out because everyone is introduced to an element of uncertainty of what everyone else will do, so rather than wait around to find out if people will sell, people sell. Then, the rest of those who actually did wait to see if people would sell begin to see selling and they too begin to sell. It all snowballs from there. Essentially fear drives the price lower.

Shaun Overton · 09-07-2008, 05:42 PM

That and everyone knows the US government has more debt than it can ever possibly service. The only options are to take the required economic beating to correct 20 years of obscenely low credit or to prolong the inevitable torture by printing money and eroding the dollar. Bernake's solution is to save the institutions by eroding the purchasing power of everyone else who didn't take ridiculous risks.

Shootanappleoffmyhead · 09-07-2008, 06:22 PM

Quote:

Originally Posted by Shaun Overton

That and everyone knows the US government has more debt than it can ever possibly service. The only options are to take the required economic beating to correct 20 years of obscenely low credit or to prolong the inevitable torture by printing money and eroding the dollar. Bernake's solution is to save the institutions by eroding the purchasing power of everyone else who didn't take ridiculous risks.

Oh, don't even get me started on Bernanke. When the U.S economy is about to sail over a waterfall in a canoe of policy his solution is to pack more people into the canoe to help paddle against the current. The end result is that more people plunge to their death. I agree wholeheartedly that we should have taken the required economic beating when it was due, maybe 5 years ago. Instead we keep running from it and making the economy more pissed that it has to play hide and seek. So when it finally does find us it beats the sh#* out of us. You can run but you can't hide Benny...and still the rich's money funnel remains intact.

Shaun Overton · 09-08-2008, 09:05 PM

apple,

I think you might enjoy this Jim Rogers interview: Jim Rogers: How the Federal Reserve Will Fail and the One Sector Every Investor Should Be In

Shootanappleoffmyhead · 09-10-2008, 01:09 AM

Quote:

Originally Posted by Shaun Overton

apple,

I think you might enjoy this Jim Rogers interview: Jim Rogers: How the Federal Reserve Will Fail and the One Sector Every Investor Should Be In

Great interview, all the things I'd like to say but in billionaire investor fashion. The greatest.

09-06-2008, 05:31 PM	#1 (permalink)
TheBull284 Status: Junior Member Join Date: Aug 2008 Posts: 24 InformedPoints: 0	Freddie "Investors are saying, 'We want to see [the Treasury] in there with us,'" The Treasury will have to "swim in the pool, not just be a lifeguard," I like that quote. A little confused about Friday. The treasury is in the process of figuring out the final plans (bailout) for the GSEs. But if a plan is coming together then why sell-off. One would think that if the GSEs are getting bailed out then we would at least see consolidation or a little buying. So why the major sell-off. I understand the entities are in trouble. Is it just because rumors are out there of changing management at the GSEs. Perhaps the answer is the following: "Among the issues with which Treasury has been wrestling is whether to make an investment at such a low price that shareholders are effectively wiped out." I'm guessing the low price is going to drive down the share price. In that case, GREAT. We will see the stock take a hit and in a few wks will see a push up like two wks ago. Share This \| Last edited by TheBull284; 09-06-2008 at 08:40 PM.

09-07-2008, 05:42 PM	#4 (permalink)
Shaun Overton Status: Senior Member Join Date: Apr 2008 Location: DFW, Texas Posts: 139 InformedPoints: 250	That and everyone knows the US government has more debt than it can ever possibly service. The only options are to take the required economic beating to correct 20 years of obscenely low credit or to prolong the inevitable torture by printing money and eroding the dollar. Bernake's solution is to save the institutions by eroding the purchasing power of everyone else who didn't take ridiculous risks. __________________ Shaun Overton OneStepRemoved.com MetaTrader Programming & Strategy Development

09-08-2008, 09:05 PM	#6 (permalink)
Shaun Overton Status: Senior Member Join Date: Apr 2008 Location: DFW, Texas Posts: 139 InformedPoints: 250	apple, I think you might enjoy this Jim Rogers interview: Jim Rogers: How the Federal Reserve Will Fail and the One Sector Every Investor Should Be In __________________ Shaun Overton OneStepRemoved.com MetaTrader Programming & Strategy Development

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09-07-2008, 01:15 PM	#2 (permalink)
TheBull284 Status: Junior Member Join Date: Aug 2008 Posts: 24 InformedPoints: 0	Per Bloomberg, they are bailed out ("government seized control") and common shareholders will not get wiped out.