Zombies
Update: Barron’s has a different rumor:
It’s beaten-down Ward of the State day, as shares of Fannie Mae (FNM), Freddie Mac (FRE), American International Group (AIG), among firms with substantial government involvement, are lifting on a rumor spreading among traders that the government may take steps to limit short selling in shares of stocks in which it holds a stake.
Ahh yes, the ol’ ‘get shorty’ approach. Hat tip to Ron Sen on Twitter.
It doesn’t make a lot of sense — FNM and FRE have been trading around a buck for a long time now. Not much to short there. But they do help keep the ‘rebate’ traders in business.
Original post:
The living dead have arisen to be pumped up once again: AIG, FRE, FNM and C.
ZH looks at the rumor mill, and adds this on Twitter:
Rumor is Citi will LBO combined AIG/FNM/FRE complex. Government will fund debt and equity portion of deal with existing Fed GSE holdings.
Any truth to any of this? I have no clue. But, of course, it’s considered good news for ALL four of the stocks, most of which probably shouldn’t even be allowed to trade.
Now they have to figure out how to get GM into the mix…
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Somebody threw a grenade among the pigeons. (That’s like throwing a cat among the pigeons but, with more feathers flying.)
Comment by Fred — 3/9/2010 @ 2:45 pm
More rumors — see post update.
Todd Harrison says: “AIG (AIG) rallied 20% in an hour, starting at 1:00 EST. Yeah, that’s healthy, normal market action!”
Comment by BMB — 3/9/2010 @ 2:49 pm
What?! The feds taking steps to limit short selling on FNM? Im shocked! They would never interfere with the ‘free’ market would they?
Comment by Randal — 3/10/2010 @ 12:52 pm