Whats going on with the futures market? The Dow is up 225.
FRE/FNM ?
But how is that correlated?
FRE/FNM are trading down -20% each in the after-market according to Yahoo Finance. That could be off though, not sure what ECNs they’re lookin at. 80% of the common is going to get bought out of FRE/FNM and we still don’t know the price. If these readings stay where they are til open on Monday, it seems like the market is viewing the bailout as bad for the common holders, but good for the economy as a whole. If someone could look up how the preferred and bonds are trading, that would be informative.
looking at the same thing ditch - scratching my head as well. Are you looking at bloomberg.com for the futures?
That’s correct. Earlier today they were up only 27 points for the Dow. My gut impression was futures would tank based on the government takeover and the adverse effect on all tax payers. Where’s Null&Nuller? He would have a decent explaination.
It’s a direct transfer of credit risk from the market to tax payers.
We have just opened in Aus, financials are up. Of our big banks NAB 7.5%, CBA 4.2%, ANZ 5.2% our biggest investment bank Macquarie up 12.48%.
Thought so, this is pathetic how my tax dollars are giving a boost to IBs
The taxpayer bailout is perceived to mark the bottom. You know, how Bear Stearns was suppose to mark a bottom in March?
This is a false bounce. S&P 500 owns Fannie & Freddie. People lose money. Govt bailing out with future $ that arent in economy since it will be taxed. Plus many banks bought Fannie & Freddy… Market with be down by end of week.
I think you are correct, but would not be surprised to see the rally last until IBs and/or regional banks report their next quarter. Then the discussion will turn to, “Will the US Govt bailout _____”…
Their next quarter is next week!
DJIA Futures +266 now. We’ll just have to wait until the open. I don’t watch CNBC much but tomorrow FRE & FNM are going to drag me in. We’ll probably have a nice strong day tomorrow across the broad markets while FRE & FNM slip below $1.
I guess people think the govt is going to bail everything out, so time to party on!
bchadwick Wrote: ------------------------------------------------------- > I guess people think the govt is going to bail > everything out, so time to party on! Then we’ll see the world’s worst hangover filled with projectile vomiting and the daylong migraine.
“a direct transfer of credit risk from the market to tax payers.” In fact, it’s even worse - a direct transfer of credit losses… Edit (and of course still risk)
its too early to call if it will cost the tax payers money. it could turn out to make the treasury money in the long run if people are able to refinance and the rate of foreclosures slows down ergo go house price depreciation will stop. People are predicting mortgage rates to come down as well which will help.
Hmm… my market short is moving way against me, and my longs are just staying flat. What a confidence ripper! Still, I don’t think we’re at bottom yet, so I guess I just hang on tight and be glad I’m not highly levered. Sigh…
buy some calls on SKF