Nouriel Roubini shows his disdain about the Freddie Mac & Fannie Mae nationalisation Join discussion...

The nationalisation of Fannie Mae & Freddie Mac has triggered a default 'event' in the CDS contracts. What will be the repercussion? Join discussion...

The viability of the US dollar as money is put into question... but the market can remain irrational longer than you remain solvent. So, don't leverage up, whichever side of the trade you are taking. Join discussion...

As this paragraph says, "According to the US Government's Accountability Office the national debt stood at $US4.4 trillion early this year. Unless the habit of deficit spending is arrested quickly this figure will double in the next ten years. Meanwhile, the social security system faces an unfunded liability estimated by the Government Accountability Office at $US6.7 trillion and the unfunded liability of Medicare is $US34 trillion." Where is the US going to get all these money? Join discussion...

Even the nationalisation of Fannie & Freddie still have problems: "The takeover of Fannie Mae and Freddie Mac is likely to cause big problems for hundreds of community banks nationwide and could lead to a new round of bank failures. That's because many smaller banks had a large amount of funds tied up in the preferred shares of Fannie and Freddie..." Join discussion...

This is 'big' news, as expected that the US government will finally succumb to bailing out the two giant financial institution. Join discussion...

Take a read at this paragraph: "The article said that inability to raise capital would leave the government no choice but to have the federal government loan them money or buy their equity. Congress recently granted the Treasury Department the power to loan Fannie and Freddie an unlimited amount of money or to buy up their shares. The Barron's article suggested that such an infusion of capital would wipe out the holdings of current shareholders." Monetary printing press is warming up! Join discussion...

The US is still trying to do anything and everything to re-inflate the housing market. Join discussion...

A primer for investors who hold or are looking to buy Fannie Mae or Freddie Mac debt and equity securities. Join discussion...

The current US government will do anything and everything to fight deflation. See "Recipe for hyperinflation" @ http://cij.inspiriting.com/?p=337 Join discussion...