Freddie Mac-No Politics (FMCC)

[etzetrade]

No, he is completely wrong. He is a MM. Pump and dump it. Nothing gain extra here. The only assets they have are mortgage payment. So many foreclosures are out there and in a up trend. Actually, they are in a bad positions ever. The only reason that they are there is because US government injected tax payer's money.

We are speculating here. Hoping one institution w/a lot of private investors will take over after the government scale down those two guys. THAT IT. We now hope the stock price is better than $0.15 instead of going to BK court. In any rate, government won't let them go BK due to the they are holding the second large financial market.

The questions is back : Can the new institution save previous owners ass, including pref. and commons? Yes or no. I don't pump it, but I will sell common to exchange pref because the latter has a slight chances.

On the Y board, one article mentioned some pref. are the same claiming level as government's money. Remember AIG, government will swap her money (=pref. stocks) for common stocks. That is people's hope. Commons, I don't know........... like AIG's common, I doubt. AIG can survive itself, but not those two guys. New investors mean commons are wiped out, like New GM.

Again, nothing has been increased in equities or so. That's pumper's game.