This afternoon's spike on Fannie commons and preferreds has nothing to do with tweets from Glen Bradford. Senator Elizabeth Warren delivered a passionate repartee to reporters about taking on the DOJ and FBI for failure to prosecute the bank and Wall Street types she labels as culpable for the 2008 economic crisis. It was largely a political overture, in my mind, explaining why the persecution of Hilary Clinton over e-mails is so unfair and just politically driven. But it also sounded like it could signal some initiative to punish TBTF banks and related institutions that could represent a softer stance on Fannie and Freddie.
The elevation in S/P's was consistent with the timeline on her remarks. I don't think any Tweets or blog posts had anything to do with the rise. We will know for sure tomorrow based on further price action and whether any actual announcement is really forthcoming. I really doubt it. The vast majority of these "bombshell rumors" turn out to be pure crap. Sadly, there has been so little progress on anything concrete that even silly rumors on court decisions become major topics of conversation and scads of messages back-and-forth. People are just getting desperate for some exit from the gridlock in all these courtrooms. This has dragged on WAY too long. Enough blame to go around on that one to condemn just about everybody involved... government obstruction, legal blunders by plaintiffs, narrow thinking from the judiciary, intractable polarity among stakeholders trying to grab the cash before someone else gets it...
JMHO.
