Taipan Investor Financial

Taipan Covers the Investment World in Stocks, Options, Forex, Commodities

Today is Monday, January 05th, 2009

About the Author

Taipan is a retired commodity broker, forex trader and portfolio manager who enjoys following the forex, stock, and commodities markets and drawing upon his 40 years or so of trading experience to post articles to a series of blogs. While Taipan is not always right with his forecasts he usually offers some interesting insights into markets. Actually if he weren't so modest he would tell you that in the big strategic picture he is almost always right. Taipan is very distrustful of statements made by stock brokers, stock analysis, so called forex experts, and in general talking heads. The investor who thinks that the playing field is level and that he can depend upon MSNBC and CNN for inside trading information has got to be at least a little nuts. If you want to trade well you had better develop your own style and your own sources of reliable information. This blog will attempt to provide market trading information that will be helpful. However, always keep in mind that any decisions made to trade using this information are your sole responsibility. Taipan has been around long enough to know that the markets can make a fool out of anyone so never blindly follow what someone else suggests. To trade well you have to think well and the thoughts need to be your own.

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Fannie and Freddie to be Taken Over by Feds: Reports

September 6th, 2008 • Related • Filed Under

After the usual BS assurances by federal officials and top management at the twins of doom that Freddie Mac and Fannie Mae had sufficient operating capital reports surfaced late Friday that the day of reckoning was near. Freddie and Fannie may be taken over by the Federal Government as soon as this weekend.

The take over would be the largest financial bailout in America’s history and probably pretty much wipe out the common stock shareholders. The take over would add about six trillion dollars to the federal debt, not a very reassuring figure. In fact it may well bring into question the very credit worthiness of the United States government and add to the cost of all government attempts to raise money in the future.

Who wants to lend money to a bankrupt government?

The following story is on Reuters:

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WASHINGTON/NEW YORK (Reuters) - The U.S. government plans to put government sponsored mortgage finance companies Fannie Mae and Freddie Mac under federal control, the New York Times and Washington Post newspapers reported late Friday, in what could be the largest financial bailout in the nation’s history.

The two government sponsored enterprises (GSEs) own or guarantee almost half of the country’s $12 trillion in outstanding home mortgage debt.

The Wall Street Journal reported earlier on Friday that the U.S. Treasury Department is close to finalizing a plan to restructure the two companies that includes changes to their senior management.

The plan could be announced as early as this weekend, the Journal said.
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Go to Reuters for the complete tale of woe.

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