Ferrari Mailing List: Re: OT - NFC - Investment Info

[JAshburne (JAshburne]

Larry
 
Avoid the equity like the plague!  It has been toast for a long time  and 
especially so now that the Feds have had to take over.  It could be one  of 
those 
dollar and a dream lottery type options, but it is a real long shot  that the 
equity will ever be worth anything.
 
The real play was buying their bonds before the takeover.  Even though  they 
were thought to have an implicit government guarantee, their was enough  risk 
and uncertainty that they were trading something like 230 basis points  
(2.30%) over the equivalent Treasury note.  When the feds stepped in, the  
spreads 
immediately tightened to 175 basis points, which means that the price of  the 
notes shot up big time.
 
There probably is still more pain to come in the financials, so I would be  
cautious in that sector.
 
Just MHO
 
John
 
 
In a message dated 9/10/2008 9:59:56 A.M. Eastern Daylight Time,  
l02turner [at] comcast.net writes:

Hey  Gang,
Gotta question and don't know who to ask.  As most people know,  Fannie Mae 
and Freddie Mac,have lost most of their value.  Both are  selling for between 
$1 and $1.20 and with the Gov't's track record of bailing  out losers, I was 
thinking of buying a few hundred shares perhaps - what do  ya'll think?

Or is there someone you could suggest I speak  with?
;-)

Thanks!

Take Care,
Larry  T
http://youroil.net
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