GO GATA!!!
The Orwellian bigfoot hand was everywhere as the trading day wore on … an extraordinary one at that.
The scene for a gold price explosion and a stock market dump were all in place and for a while it looked like that was what we would get.
Enter Gold Cartel and PPT … all while the hypocritical Herr Paulson babbled in front of Congress about what has to be done 9 months from now, which of course, will do nothing to solve the growing financial crises in the US. The scene…
*Reuters) - Mortgage lenders Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) are "insolvent" and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.
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Fannie, Freddie insolvent, Poole tells Bloomberg
(Reuters) - Mortgage lenders Fannie Mae and Freddie Mac are "insolvent" and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.
"Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer," Poole was quoted as saying in an interview held on Wednesday.
Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying.
Shares of the two companies have taken a beating recently on worries about whether they can withstand more losses and support housing as well as concerns that they may need to raise massive amounts of new capital.
Freddie Mac shares tumbled 23.8 percent to $10.26 on the New York Stock Exchange on Wednesday, while Fannie Mae shares sank 13.1 percent to $15.31.
Poole could not be immediately reached for comment.
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*"Rumors are running rampant that a major US institutional investor has cut trading limits with one of the major investment banks.
A variation of the rumor is that they have cut limits with a number of prime brokers. This is helping undermine the greenback across the board."
The major investment bank is Lehman Brothers.
Their stock cratered too, making new lows. One of the investors was Pimco, which denied the rumors.