Stock decline as Fannie, Freddie fall sharply - DOW to dip to 10,000's?

Stock decline as Fannie, Freddie fall sharply - DOW to dip to 10,000's?

biz.yahoo.com

NEW YORK (AP) -- Stocks tumbled Friday as investors focused on troubles at mortgage companies Fannie Mae and Freddie Mac and watched oil prices climb further into record territory.

Fannie and Freddie at times each lost more than 40 percent on growing speculation that a government bailout is needed. A collapse of the two financiers would cause further shock to the financial system, and trigger more losses to banks and brokerages with significant holdings of mortgage-backed securities.

(visit the link for the full news article)



[edit on 11-7-2008 by TruthWithin]

It is very possible that the DOW could fall below 11,000 points today (currently at 1135). This is quite fall from 14000 just over a year ago. It would appear that the 'Hindenburg" omen is pretty accurate.

Needless to say, it will be a rough day on Wall Street especially with oil rising to over $147 a barrel.

biz.yahoo.com
(visit the link for the full news article)

Now they are saying that there is no sign there will be any sort of government bail out for either of the financial giants.


This could get bad fast.

The pair hold or guarantee around $5 trillion worth of mortgages. That's roughly half of the $9.5 trillion debt of the United States. The fear is that a failure of one or both would wreak havoc on the nation's financial system and the broader economy as well.

www.cnbc.com...


Far... out!

This will be something significant, wether its saved or not.

How can the US Government all of a sudden juggle that sort of debt on all its overheads?

reply to post by Agit8dChop


Simple answer is; THEY CAN'T.

This very well may be the tipping point for things to go down hill fast. People have been talking about this for a while now. Buckle your seat belts!

Maybe there is some truth to this thing where the U.S. economy collapses by the end of 2008. It seems like every week there's more bad news.

HOLY COW! Both stocks have been cut almost in half today. Both are down over 40%! I didn't realize it was THAT bad. YIKES

reply to post by JediK


Yes there is. The end of 2008 will be a very rough time for the economy as is. And if these two giants fall, that will be a catastrophe for the US economy. Foreclosures are already up 53% this year. This will put many homeowners on very unstable ground.

It looks like Uncle Sam is gonna step in and take over...it sure looks like they're not doing much. I think they're getting ready for the NAU, but that's for another thread.

But geez, if they just mention "Iran" oil shoots up - this is madness!



[edit on 11-7-2008 by JediK]

I have a question. Not knocking anything, I just seriously want to know.

I did some currency conversions. Ours is near the same as Canada and Australia.

Now I know ours was worth almost twice as Australia at one time etc.

I also compared it to places like Tiwan where theres is like .23 to our dollar.

Mexico is like .10 to the dollar. So for it to be totally crashed it would have to come down to those levels. Its not that bad at the moment. So do you see it really coming down that far?

This is all mental. And youve got to be mental for thinking otherwise. Jeeze, what a bunch of whiners we have here at ATS!

all i know is you can take away my ability to " BUY " my living.... but when it comes down to it, Im gonna survive whether or not I have the funds to achieve such matters.

as long as birds an fish are alive, trees grow and places of this world are isolated an labeled " backlands " we'll be fine.

How long do you think we can sustain that amount of wealth leaving our country every day and going into the pockets of OPEC? Billions upon billions, never to return.

We need to keep the money here - start drilling today!

I have a question also.........

Haven't most major drops in the Dow as of late been on a Friday?

Is it a meer coincedence or by design to expose it to lower viewership of MSM on a Friday night?

Freddie and Fannie will not be nationalised.

Why? It would double the national debt, which the Federal government cannot afford to do. The United States will not risk allowing them to collapse because it would end up causing an economic depression. Funding will be provided - i.e a non official "nationalisation".

Worst case scenario, THE PERFECT STORM? DOWn will be at 1,700... Best case, 7,000-9,000...


Absolutly correct, Freddie and Fannie WILL NOT be nationalized and WILL implode. You are talking about 6 TRILLION dollars, of which 4 TRILLION are off balance, off sheet, $hit loans. These loans are being pushed back onto the books.... Heavy $hit coming down the pipe...

[edit on 11-7-2008 by pityocamptes]