OK... Looks like gov't is taking over Fannie & Freddie - opportunity to profit with PM trading?
PreTurb
Posts: 1,191 ✭✭✭
How will the takeover of Fannie & Freddie affect the US dollar? Is this buy or sell time for PM's? If it's buy time, buying can fairly easily be done on the weekend to get a jump on the market. What's your take on this?
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Comments
Paulson likes these Sunday afternoon deals doesn't he(?)
ren
<< <i>Crystal ball not working very well, but I'd say the short-term is flat. Longer term, however, a takeover will likely cause higher inflation and is bullish for PM prices. >>
BTW ... I send my crystal ball to the "boneyard" ... must have been made in China ...
Even if there is market manipulation, eventually that will come to an end and PM's will reach their true value.
People ask, is it a good time to invest in PM's?
I say, if you think the big governments of the world are going to keep printing money at an ever increasing pace, definitely YES!
Before a takeover of F&F they will of course coordinate a further takedown in gold to help initially boost the dollar. With luck the final result will be a wash as the dollar reverses a day or two after the Fannie pack explodes.
roadrunner
The rumor of this takeover/bailout was out over a month ago. The news will do what it will do, depending a lot on how many folks already positioned themselves after hearing the rumor. Best to watch the price action and the charts. If uncertain, best to stay clear.
Someone who wants to participate in a fun PM message board and who also enjoys reading other peoples' posts. If we were all investment geniuses we wouldn't need to spend time here.
Someone who's tired of the stock market and government paper.
I knew it would happen.
The kind of person who realizes the dollar's best days are behind it, and that PM's are a more truthful currency. You can probably stick Greenspan, Bernanke, and Paulson into that category as well.
roadrunner
<< <i>What kind of person hears this news and starts thinking about how it will effect gold and silver prices? Wouldn't housing stocks or bank stocks, or currency futures be more directly influenced by this kind of news? Or a dozen other industries before metals and mining? Why go for the obtuse, indirect trade, when there are so many more direct plays? >>
Perhpas those looking for a great entry point for a long term physical buy and hold.
i guarantee you will.....but you need to know if PM's will go up or down, when, and by how much.
you will be able to maximise by getting in and out several times a day, just time for the ups and downs perfectly.
may keep an eye when the Asian markets open later today and ignore it.
takeover
I will be very happy if correct on 3 out of 4 and very unhappy if wrong on 3 out of 4.
Tokyo stocks +2%
gold +$11
silver +42 cents
US stock futures +2.5%
We'll see if these gains increase or fade by Monday's New York close.
Again, it is extremely risky for newbies looking to make short term trades in fast moving market conditions. Spreads are wider, mistakes are easier to make, vs. when conditions are calm. If a person likes betting long shots, go ahead and put your money down.
Long termers don't need every last percent on entry and exit, and it is a dream to believe a person can time their entries and exits even if they try to. More likely, novices will buy near the tops and sell near the bottoms. It is the way of the world, always has been, always will be. A few newbies will get lucky, and beat the odds, but understand that the odds are stacked against the newbies when they play the timing game.
hoping for a reason for them to go up and i will be the contrarian
saying they will end lower because there is very little reason for
manufacturers to be buying the metal when they are slowing down
production wise.
gold is different though. it has held up surprisingly well but even it
will find these quick jumps up paired down in short order.
Why the Mortgage Bailout is Bad News
If this truly doubles the national debt, and as social security payments rise during baby boomer retirements...inflation will become unmanageable.
Short Term, who knows. Long Term, bad deal for us. All of us.
Unless there's a taxpayer rebellion, and unless this takeover gets reversed, there is no way to avoid a currency meltdown.
I knew it would happen.
if it stabilizies or rises, we might as well throw in the towel.......the market is FIXED.
Buffet seems to think this is a good move, waiting longer would be even worse on a macro scale.
Is this the beginning of the end? I find it hard to believe that it's smooth sailing from here on out.
The house next door to me is 189k, it started at $275k 18 months ago, and still no buyers.
The local Sunday paper had 28 foreclosures, the most I've seen so far.
So I ask my fellow CU members, what does this bailout really mean?
Scott
Other than that, it's business as usual.
I knew it would happen.
Member ANA, SPMC, SCNA, FUN, CONECA
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MOST of the paper in NOT "worthless." It is being serviced by mortgagors
who are able - and will remain able - to pay their monthly bill.
roadrunner
A bunch of worthless paper is still a bunch of worthless paper, regardless of what else came along for the ride.
Storm, I'd be glad to sell you some worthless paper at face, and throw in some T-Bills at market as a "package" deal. Just let me know.
I knew it would happen.
NEVER lost a cent.
FRE and FNM are now at risk of being looted by their "conservators."
The "rescuers" will sell paper to their friends - and to THOUSANDS
of folks like me - at deep discounts.
Performing-paper is NOT bad paper. Folks who buy it for pennies
will make BIG money, and the taxpayers will be hurt.
The foxes have been let into guard the chickens.
A default rate of 9.3% on a total liability of over $1 Trillion actually IS a bunch of worthless paper, regardless of the other 90.7% that is along for the ride. And that default rate is increasing.
The effects on the economy of these bailouts is insidious because the short-term euphoria only masks the underlying root problem of a shrinking middle class and a smaller tax base.
The economic drag that will be created in our country by higher taxes to support an unwieldy government bureaucracy will keep the stock market from ever regaining earnings momentum, and over time - precious metals will be recognized as a safeguard of value.
I'd consider precious metals to be a realistic option for staying even, but not really an opportunity for profit in PM trading. Remember that the trading game is played by professionals who don't intend to lose. The only way to win is not to play their own game with them.
I knew it would happen.
roadrunner