Thursday, March 20, 2008

musings - fnm, c, bac, jpm, etc.

so this is the week that the white house finally gave up its fight to destroy fnm and fre. the white house/treasury relented, and fnm, trading at about 20 or so just a short while ago, now trades in the 30s.

the fed finally got serious with its plan to allow banks other than commercial banks to use its discount window. things may finally start to thaw out on trading desks everywhere. even at c! witness gs traded sharply higher to about 180 and c goes from about 18 to 22. not very surprising.

getting to the end of this month, when the new fed auction thing starts on 3/27, is key to avoiding some nasty stuff. it's what i've been predicting, and positioned myself for accordingly. hope it continues.

all of this can only benefit bac with its cfc purchase and jpm, with its bsc gift. it's astonishing to me all of this trouble and pain has been caused by about 300,000 foreclosures here in the u.s.

long fnm, c, gs, bac, jpm

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