Freddie & Fannie - Troublesome Twins

Posted by Kris | Saturday, July 12, 2008 | , | 0 comments »


Like twins, Freddie and Fannie's life are entwined to each other. But suffered miserable punishment for their mortgaged lending activities. Dont ask me why there are called Freddie Mac (FRE) & Fannie Mac(FNM). I don't really know, the real name is quite long. Luckily for Charlene Choi, her future is much brighter as she is not involved(or exposed) in any Edison-like scandal that is tarnishing Gillian Cheung's sweet & innocent girlish image. In the stock market, there is no mercy and pity for the Twins.It is possible that a US Govt-led bailout is imminent for Freddie and Fannie to prevent a collapse of the financial system.

I just got to know that there are new up-coming local funds that specializes in investing in fallen from grace US financial stocks that has a rerention period of 2 years. This, means that alot of fund manager are anticipating that the US financial system will recover in 2010. It is a capital proctected fund thus it means that the most you can lose is the opportunity cost tand a measly 4% interest if you put your cash into fixed deposit.

But nevertheless, i still fell that we have not even reach the bottom yet but I not sure what to invest with my money during the full-blown recession aka when FEAR is at its height..something like financial armageddon. Anyone can help me on that??





LEH continues to be massacred. It dropped even more on Friday, option violatility spiking even higher compared than Thursday's plunge. The 20 Put July reached USD6!! and a violatility of 240. With a 5 more trading day before expiration on 18 July, it still have alot of time value with the high violatility in place.


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