Fannie Mae and Freddie Mac closed lower today

[bugscufle]

That's after the United States Treasury said it would be backing the two financial giants.

Tonight, the Asian stock markets are down two to three percent. That is not shocking, but it is significant. It is being desribed as a crisis of confidence--uncertainty about the stability of the US dollar.

This situation is like a person in the office of the bank president requesting a home loan. In walks the applicant's, homeless, alcoholic uncle. The uncle staggers up to the president's desk and states that he will stand good for the loan.

[jott]

I’m kind of worried about this one. I’m starting to hear more and more that over seas investors as starting to question the amount of US debt. I have heard some numbers in the trillions for possible debt from fannie mae and freddie mac, and I’m hearing that there is no belief that the US government can take on that amount of additional debt. I think this is new when investors don’t think that the US can back debt.

We will have to see but I think if the problem is as big as many are saying if the fed tries to bail them out they just mite pull the US gov down with them. I know it is hard to say to all the people that can’t afford there houses now, but we can’t help you. doing so may make something many times worse and last much longer.

[gump]

Stocks of Fan and Fred are likely to close lower b/c @ this point it makes more sense to buy the bonds. Higher up on the credit scale.

Scary talk about some of the govt's ideas - limit amount of short sales, prevent one of the bigs from going down, etc. What kind of free market is this?

There was the Asian financial crisis, Brazilian financial crisis, we are looking to be next - the greatest economic power.

[Buck]

Mods, Fair is fair. This thread belongs in current events
NOT in General. Please move.........