Fannie and Freddie Bite the Dust

By STEPHEN LABATON and ANDREW ROSS SORKIN New York Times

WASHINGTON — Senior officials from the Bush administration and the Federal Reserve on Friday informed top executives of mortgage finance giants Fannie Mae and Freddie Mac that the government was preparing to seize the two companies and place them in a conservatorship, officials and company executives briefed on the discussions said.

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This is big, VERY BIG,……..much much bigger than Bear Stearns…………the yen is going to OPEN 100-200 point stronger on Sunday………….anyone who went into the weekend short the USD/JPY, is partying up right now…………..I unfortunately am not holding any position in the USD/JPY pair.

But don’t get caught………..this could be interpreted as the end of the wider crisis and the Dollar to gain even more strength, but I doubt this. 

Longterm this can only be viewed as USD negative.

How many institutions, Money Center Banks and Brokerage houses are the US Government going to bailout…………they just keep printing those dollars.

Also don’t be surprised if US Sovereign Debt, you know, the 30 Year and 10 Year Bonds, are DOWNGRADED on Monday.

~ by ffxts on September 6, 2008.