If senate passes bailout plan tonight.....

[Joyell]

If the senate passess the bailout plan tonight, what are your opinions of what fannie mae stock will do tomorrow? The ban on shorts is being lifted tomorrow, if I'm not mistaken. How will those two things affect the price?

Just looking for opinions.

[MaryKay1965]

Originally Posted by Joyell

If the senate passess the bailout plan tonight, what are your opinions of what fannie mae stock will do tomorrow? The ban on shorts is being lifted tomorrow, if I'm not mistaken. How will those two things affect the price?

Just looking for opinions.

Tough call. If you're playing FRE/FNM, IMO, you're either gonna win big or lose big. 50/50 either way.

As far as the short ban, I think it will probably be extended. The govt. wants to restore as much confidence in the market as humanly possible.

[ZaNoob]

I heard it was extended to Oct 17th but I'm not sure.

[firefighterwebguy]

Originally Posted by Joyell

If the senate passess the bailout plan tonight, what are your opinions of what fannie mae stock will do tomorrow? The ban on shorts is being lifted tomorrow, if I'm not mistaken. How will those two things affect the price?

Just looking for opinions.

If this thing passes and the 'goal' is to jumpstart the economy and stimulate confidence on Main Street, then I could see FRE/FNM heading towards where it was back in July 08, if not Oct 07, depending on how fast you believe this housing situation will turn around.

[Stin]

I imagine a blip up to 2.20-2.30 FRE until we get the house of reps to vote on this. After that I could see a big spike possibly up to $4, followed by a collapse back to the $1.50-2.00 range. I think these stocks are being propped up by the impending vote. After that, profit takers will take it down.

After that... who knows.

[kingfisher]

Originally Posted by Joyell

If the senate passess the bailout plan tonight, what are your opinions of what fannie mae stock will do tomorrow? The ban on shorts is being lifted tomorrow, if I'm not mistaken. How will those two things affect the price?

Just looking for opinions.

The Senate has passed the bill, but the House of Reps has not! The votes are not all in. May be tommorow you will make a profit or loose nearly all? I guess it depends on your purchase in price. I hope this was a spec. play?

[DuncanK]

I think there was little doubt that the Senate would pass the second bill considering they passed the first one. FRE is up 5 or 6% in after hours trading, but the future of this stock is undoubtedly dependent on the House vote. Best of luck

[Joyell]

I don't currently own it. I'm wondering if it's worth investing in. I'm not sure what happens to a company when the government seizes it and turns it into a conservatorship.

Will the infusion of government money bring stability to FRE and FNM? They are sitting on a lot of bad debt, but if the government is planning on buying it, or backing the bad loans, then how does that affect their profitability, and their stock?

Another question for another thread........if the government is going to back all of the bad debt, then how do the taxpayers break even or make money on it when the lenders can't?

[firefighterwebguy]

Originally Posted by Joyell

I don't currently own it. I'm wondering if it's worth investing in. I'm not sure what happens to a company when the government seizes it and turns it into a conservatorship.

Will the infusion of government money bring stability to FRE and FNM? They are sitting on a lot of bad debt, but if the government is planning on buying it, or backing the bad loans, then how does that affect their profitability, and their stock?

Another question for another thread........if the government is going to back all of the bad debt, then how do the taxpayers break even or make money on it when the lenders can't?

Don't take this to the bank, but how I understood the bill was to free up the 'bad' debt on the balance sheet to allow banks to be more in the green or at least above the break even point, thus allowing them to have more cash to lend out. The more they lend with good loans, the more interest they are able to collect from the homeowners who take the loans out. The more interest they collect, the more they claim as profit or relendable monies. Hope that clears things for you.

Is it a good time to jump in? Well you could just go to the casino and throw all your money on one bet. 50/50 odds is speculative.