Tuesday, November 20, 2007

Jim Rogers On "Phony Mae and Fraudie Mac"

Make sure you hear the "amusing" Bloomberg Interview with one of my heros Jim Rogers. Here my take from yesterday Freddie Needs Fresh Capital...... It´s funny to see how the reporter tries to defend Freddie & Fannie.... But he is by far better than this must see example from FOX Business News. They even make Mark Haines look smart......

Hier das extrem amüsante Bloomberg Interview mit einem meiner Helden Jim Rogers sowier mein gestriges Post zu diesem Thema Freddie Needs Fresh Capital...... Man kann fast das Gefühl haben das der Reporter sich vor Angst fast überschlägt. Aber in jedem Fall besser als dieses Beispiel vom angeblichen Wirtschaftssender FOX Business News

Freddie, Fannie Shares Will Continue to Slide, Jim Rogers Says
Nov. 20 (Bloomberg) -- Freddie Mac, which today dropped the most ever after posting a record loss, and rival mortgage lender Fannie Mae will continue to tumble because of bad home loans, investor Jim Rogers said.

``I'm still short those companies, they both have a long way to go as far as I'm concerned,'' Rogers said in an interview. ``Neither one has a clue what's on their balance sheets.''

Freddie Mac, the second-largest U.S. mortgage company, warned of a possible cut in the dividend and the need for additional capital. The worst housing slump in 16 years caused ``significant deterioration'' in the third quarter that will continue through year-end, Freddie Mac said after reporting a net loss of $2.02 billion, or $3.29 a share, three times what some analysts estimated.

Rogers, who predicted the start of the global commodities rally in 1999, advised in a Nov. 5 interview with Bloomberg that investors should avoid financial stocks. In March 2006, he said Fannie Mae shares would decline.

Make sure you read Drilling Deeper into the Freddie Fiasco from Greenberg!

Laßt Euch auf keinen Fall Drilling Deeper into the Freddie Fiasco von Herb Greenberg entgehen!

Thanks to Rodger Rafter for the term "Phony Mae and Fraudie Mac"

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posted by jmf at 11:17 PM

4 Comments:

Anonymous Anonymous said...

J-M,

verrückte Märkte -- auf, ab.

And to think just a few weeks ago you could have shorted FRE and FNM at over 60. Wahnsinn.

I've had a large position in SKF for a while now, and it has done well. But it would have been way more profitable to short individual stocks. Scheiße...

"I'm still short those companies, they both have a long way to go as far as I'm concerned," Rogers said in an interview.

Vielleicht you could say the same thing about MER and C, among others.

eh

12:24 AM  
Blogger jmf said...

Moin Eh,

i´m still short the KBW Mortgage Financial Index

Until recently i was not glad that FRE & FNM made almost 15-20 percent of the index.....

That has changed quite a bit ;-)

Have you seen Honk Kong during the last few days......

12:43 AM  
Blogger jmf said...


Cartoon

4:37 AM  
Blogger jmf said...


WSJ Page 1 on FRE

Freddie, which bought back $1 billion of its common stock in the first nine months of the year, was laying plans late yesterday to shore up its capital with a sale of preferred shares that a person close to the matter said was likely to raise around $5 billion.

Really smart......

4:52 AM  

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