Sunday, July 13, 2008

From The Federal Reserve Website

Release Date: July 13, 2008

For immediate release

The Board of Governors of the Federal Reserve System announced Sunday that it has granted the Federal Reserve Bank of New York the authority to lend to Fannie Mae and Freddie Mac should such lending prove necessary. Any lending would be at the primary credit rate and collateralized by U.S. government and federal agency securities. This authorization is intended to supplement the Treasury's existing lending authority and to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit during a period of stress in financial markets.

They have also been empowered to buy stock in both companies from time to time, and as they see fit. Talk about plunge protection. It will be fascinating to see how this all turns out!!


Manish said...

Interesting to say the the least. The futures are up quite a bit, and probably cuz of this news.

What do you think happens in the AM?

I think we open higher, with a short sqeeze and then as usual the rally dies out towards the end of the day. (I could be totally wrong considering what a casino out markets have become lately)

About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.