3. Fannie Mae and Freddie Mac just went under.
Steven Wilson , |
Anchorage, Alaska |
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(09.06.08) |
The government has just liquidated stock holders of their money in these two companies.
Monday might have a huge sell off in bank stocks, because the United States Government is screwing the stockholders, as they take over these institutions.
Who wants to own Lehman Brothers....Merril Lynch....Morgan Stanley.....Bank of America.....Wells Fargo and so forth and so on, if the government will step in and take all the stockholders money.
This is going to cause a bank run on the Bank's stocks. People will unload the stock in these institutions before they even have a chance of losing their money.
Who knows how the 650 Trillion dollar dirivatives market will react to this on Monday.
Russia , Japan and China have to be wondering if they are going to get their money out of this mess. The Europeans have to be sweating it too.
American Pension funds are heavily bought into these institutions, as well as mutual funds.
Will this cause a run on the greenback.....will this start a Depression in the United States.
These will be interesting questions in the aftermath of this fiasco.
How much money are people willing to lose before they give up on stocks?
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