Freddie Mac's (FRE) 3Q08 net loss came in at $19.44 per diluted share, compared to a loss of $2.07 per diluted share in the prior-year quarter. Though recently the Government laid out an expanded role for the GSEs in the housing market as part of its Homeowner Affordability and Stability Plan, we anticipate the price volatility to continue as the market looks for further information on the future structure of the GSEs and their role.Further, as the housing situation continues to worsen, we anticipate higher losses and write-offs. As a result, the conservatorship is expected to continue for a long time and this will yield no value to the common shareholders of the company.Ahead of 4Q08 financial results, based on our concerns, we are maintaining our Sell recommendation on the shares of FRE. Ahead of the 4Q08 earnings release, given the continued weakness in ...

The headlines are dramatic. Short selling banned for 799 financial institutions. $50bn injected into money markets. Plans for a massive bailout fund to clear the system of bad debt and stabilize the housing market.

The Unholy trinity – the Federal Reserve, SEC and Treasury – has pulled out all the stops this time. But while US stocks soar, Justice Litle says the government’s bailouts are a death blow for the dollar.

This makes real, tangible assets highly attractive. Justice says the most profitable investments going forward will be energy, infrastructure, hard assets and non-US growth plays.

More from Taipan Daily:

In the short run, it’s not clear how things will play out – the markets are an absolute circus right now. (As if you needed someone to tell you that.) In the long run, though, we are seeing the reality of the Austrian Endgame unfold, here and now, right before our eyes.

I’ve been pounding …

So goes the title of one of Shakespeare's plays, and as I am slowly adjusting to life in Lausanne and its beautiful environnements I am forced to admit the truthfulness of this axiom. Consequently, and while I have now settled down in a nice shared apartment I feel the need to confess my readers the tremendous difficulty with which I, finally, managed to secure housing in Lausanne. I will not belabor you with details, but merely pass on my humble advice that if you are ever going to Lausanne (indeed, the entire Vaud canton!) looking for short term rental accommodations ... bring valiums or deep pockets, and preferably both!

In any case that is now well past me and to prove that I am now safely and nicely housed I have chosen to flatter this entry

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After being one of the first websites/blogs to spot the FNM/FRE takeover by Uncle Sam here, I’ve decided to let others write about the bailout specifics. Suffice it to say, this is nothing more than an attempt to get investors (including Sovereign Wealth funds) to take their eye off the ball. No doubt there will be a deluge of opinions, so instead, let’s discuss our next move.

First, even at the levels stocks are going to open this morning, the current wide trading range remains intact. Long time readers know I am no fan of trading financials from the long side, and this has served well. Many traders even bought FNM and FRE on the prospects of a bailout, but these stocks (common shares for sure) are set to open near worthless. This illustrates perfectly the reason I stay in the same …

Piper Jaffray comments on Fannie Mae & Freddie Mac (NYSE:FNM/FRE) after the U.S. Gov't, led by Treasury Secretary Paulson, took control of co's yesterday, in an aggressive and bold move.In exchange for a commitment to 1. provide capital to the GSE's to insure positive net worth, 2. a credit facility and 3. an MBS purchase program, Treasury will receive a $1 billion senior preferred stock issuance with a 10% coupon with warrants to purchase 79.9% of the company for a nominal price. Treasury could provide up to $100 billion in each GSE, if neededMost importantly, the U.S. government takeover of FNM and FRE will ensure the last remaining significant source of liquidity to the U.S. mortgage markets will continue flowing. While the firm believes the market had already largely reached the conclusion that the government would not let the GSEs fail, this historic government action ensures ...

By Jennifer Yousfi Managing Editor Investor worry over the solvency of U.S. mortgage-giants Freddie Mac (FRE) and Fannie Mae (FNM) have gutted the stocks over the last few days more than halving their market capitalizations. News of a possible government-sponsored bailout sent Freddie Mac and Fannie Mae shares plunging yesterday (Thursday) dangerously close to new 52-week lows. Freddie Mac shares sank $2.15 yesterday, a 20% decline to close at $8.11. Freddie Mac is down 76% year-to-date as of Thursday’s close. Fannie Mae stock had a similar fate, shedding $1.95, an almost 13% to decline to close at $13.36. Fannie Mae shares are down nearly 67% year-to-date. Sign up below… and we’ll send you a new investment report for free:...