Key US mortgage lender collapses

[Cara.]

FB, I really don't know. I guess it does make sense to invest in gold though...

 

Stoic and Ibti, you two are in cahoots. Ibti wants me to withdraw the money real quick and Stoic is promising to take care of it. Hmmm...

[Faarax-Brawn]

Originally posted by Cara:

FB, I really don't know. I guess it does make sense to invest in gold though...

You dont own any GOLD do you? So,those jujumas must be bulkatis eh?

[Decadent Ambition]

Gold is a good hedge against inflation especially now that the FED is creating money almost out of thin air to bail out fat banker cats. Nobody really knows the future but gold and almost all commodities will do well when real interest rates are

negative. If you're really looking for an inflation against hedge 'now' your best bet is oil(even though it was down today).

When major pension funds like Calpers and high wheeler funds move to oil, it says something.

[Faarax-Brawn]

Originally posted by Li Ka-shing:

Gold is a good hedge against inflation especially now that the FED is creating money almost out of thin air to bail out fat banker cats. Nobody really knows the future but gold and almost all commodities will do well when real interest rates are

negative. If you're really looking for an inflation against hedge 'now' your best bet is oil(even though it was down today).

When major pension funds like Calpers and high wheeler funds move to oil, it says something.

I think Gold is more solid than OIL. Some experts beleive that the oil bubble will burst pretty soon. Just like it did for the Dot com & the housing bubbles. Especially with all this talk about renewable energy sources et al.

[Cara.]

FB, all I know about gold is that it has the symbol Au and is fairly stable chemically.

 

But my jujumo are NOT burukaati, how dare you!?

 

*Stalks off slightly worried*

[Che -Guevara]

George Bush

 

"I don't think most Americans realize how important Freddie Mac and Fannie Mae are," Bush said. "We must ensure they can continue providing access to mortgage finance."

Asked whether the government might try a similar rescue for other troubled firms, Bush said,

"I don't think the government ought to be involved in bailing out companies."

Bush on economy

 

"The economy is growing. Productivity is high. Trade's up.

While the Federal Reserve chairman thinks

 

Federal Reserve Chairman Ben Bernanke told Congress Tuesday the fragile economy is facing "numerous difficulties" despite the Fed's aggressive interest rate reductions and other fortifying steps.

Cara...Shiid aa iska dhigay. I think youa are loaded qofyahe.

[Decadent Ambition]

Faarax-Brawn Gold is stable too but for one looking for immediate hedging against rising inflation crude is their best bet. If this negative real interest continues gold is a good bet.

 

Oil will eventually come down when the financial sector settles or we reach a capitulation. I doubt a major fund is willing to take the brunt and be the hero. Who would want to catch a falling knife.

 

We will see how it plays out

[-Lily-]

So the little old Somali ladies were right about gold after all.

[LANDER]

JPMorgan Net Beats Analysts' Estimates; Shares Rise

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZRbBv7bbKPs&refer=home

 

El Che, I suppose this is favorable news for your employee stock purchase plan. JP seems to be holding up ok so far in the wasteland that is US financials, we'll see in the coming quarter though, some analysts are scrambling to revise their previous estimates but it seems a little early considering the broader market woes.

[Decadent Ambition]

Lander 29th is getting nearer. Good luck buddy.

Che -Guevara works for JPM? What role che?. If you're in FX Derivatives holler mate, I need few pointers.

[Libaax-Sankataabte]

Blame Schumer.

 

The short squeeze seems to have eased a little in the last couple of days. Wells Fargo earnings report helped fuel the lastest surge as the hardest hit stocks (financials) gained modest jumps. I expect a pullback in few days as investors are still uneasy about this bear market. It is the nature of the beast.

[Pujah]

^^LOOL@blame Schumer - his warning letter freaked out investors according to the whitehouse.

 

Jon Stewart's funny take on the apparent disconnect between the president and the chairman of the FED's take on the economy.

[Che -Guevara]

^No one does like Jon and Stephen. That was hilariouos.

 

Lander...It's even better than they expected. Their profit forecast was rather dim when they assume Bear Stearns credit line. Their business is growing exponentially and we have new clients every month.

 

Li Ka-shing..Check your PM. Never mind. I just saw, you can't be PMed. I do complaince(Fund Admin) Saxiib for mostly for domestic and emerging markets equity funds. Some do have futures and swaps, but nothing too complicated. I'm not really that versed in derivatives.

[Decadent Ambition]

che check your pm.

[Che -Guevara]

More misery for US mortgage firm

 

 

Freddie Mac, which offers funding for a huge proportion of US mortgages, has posted a quarterly loss amid continued problems in the housing market.

 

As mortgage defaults climb and house prices sink, it made a loss of $821m (£420m) in the three months to the end of June, down from a profit of $729m.

 

Shares in Freddie Mac fell sharply last month on fears that it would run out of money to fund its business.

 

The US government was forced to take radical steps to ease the panic.

 

Stronger position?

 

Freddie Mac, and its counterpart Fannie Mae, are the backbone of the US mortgage market as almost all US lenders rely on them to buy their mortgages in order to access the funds to lend to consumers.

 

As mortgage guarantors, they must pay out when homeowners default on their loans.

 

With the housing market across the US crumbling, their finances have come under severe stress.

 

In its latest set of earnings, Freddie Mac set aside $2.5bn, compared with $1.2bn in the first quarter of 2008, and slashed its dividend by 80% to five cents pending board approval.

 

The company said this reflected increases in mortgage delinquency rates, foreclosures and estimated losses due to continued declines in home prices, it said.

 

Freddie Mac reiterated that it would raise $5.5bn of new capital to shore up its balance sheet and raised the possibility that it may need to raise more than that depending upon "market conditions".

 

"We are confident the actions we are taking are strengthening Freddie Mac's financial and competitive position and will generate value well into the future," said Richard Syron, Freddie Mac's chairman and chief executive.

 

Shares in Freddie Mac were down 12% in late morning trade in New York while Fannie Mae shares had dropped nearly 9%.