Bad Day for Capitalism…Good Day for Government Lovers…Fannie Mae (FNM)

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  • on July 7th, 2008

Fannie Mae is now a carcass for the government to deal with. Sadly, they refused to deal with it while the stock was riding high and insiders were dumping stock like I dump an hour after a Carnegie Deli Pastrami sandwich (clear enough picture for you).

Making fun and warning of Fannie Mae is not new to me or this blog…I have written about the coming mess for three years here .

The ‘specialized’ hedge funds that smell blood and funds in trouble with their financial longs facing redemptions are just killing it. Betting on that easy trade is now getting a little old for the average investor.

It’s why the Fannie DUMP today was my signal to cover my shorts this morning. Yes, a slow tortuous decline in stocks may JUST be beginning, but as a small hedge fund and investor, I need MEAT on my investment opportunities, not morsels. Later in the day, even ‘THE FLY’ was covering (he reads this blog closer than you). It’s not even fun anymore. It’s so ‘UnAmerican’ that it has become American to short financial stocks. Love this excerpt:

Here are some final parting thoughts:

Was it a good idea to raise Fannie Mae’s GSE portfolio caps to $730,000? Everyone with an IQ over 100 knew it was a horrid idea.

When will CNBC stop inviting fucktards who have been poleaxed in this tape, in exchange for stock Gods like “The Fly”?

Finally, beware of more “this is the bottom” calls.

I could not agree on the bottom caller stuff more. Just stop it and be patient. Strength will be back. The Fannie debacle just keeps pushing things back in time.

Take a long hard look at the stock chart of Fannie Mae . The piece of shit paper was propped for years just like CountryWide.

Most busted institutional stocks end the same way and look the exact same.

The SEC could spend a lifetime chasing the fraudsters that prologed this fantasy.

Instead, we may just have the government watching US more closely and backing our home loans directly and slowing a recovery down trying to manage the destruction underway.

Sad day for capitalism and big day for government lovers worldwide. Pathetic.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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