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| Home Front Economy |
| Options expert calls Fannie, Freddie shares 'worthless' |
| 2008-07-11 |
| Market analyst Jon Najarian at options research firm OptionMonster Inc. in a research note Friday morning said that, although he believes government-sponsored mortgage giants Fannie Mae will continue doing business, "their shares in my opinion are likely worthless." He said crude-oil prices hitting another record and tough talk from Treasury Secretary Paulson on banks had set the table for a "monster" day in the markets Friday. "There is no reading between the lines necessary here," Najarian wrote. "I think Freddie and Fannie equity may be toast, which means the government will simply take over both, as [it] can't let $5 trillion in mortgages vaporize." |
| Posted by:Fred |
| #3 Why do I get the feeling that the financial world wouldn't mind seeing this happen. I can't imagine why, before Fannie and Freddie many banks didn't even want to deal in home loans. Down payments were prohibitively high, and interest rates were the same as construction loans. Consider this, if you wanted to destroy everything that makes us America, this would be a good place to strike a blow. |
| Posted by: bigjim-ky 2008-07-11 15:17 |
| #2 Ft.com on collapse of Fannie and Freddie. |
| Posted by: 3dc 2008-07-11 13:36 |
| #1 They should feel free to let my mortgage "vaporize". |
| Posted by: bigjim-ky 2008-07-11 12:52 |