OT: Question for mo_charles

[FellKnight]

I was reading this article:

http://finance.sympatico.msn.ca/investing/jimjubak/article.aspx?cp-documentid=10271724

and was wondering if you would mind commenting on it.

Is it true that the Fannie/Freddie bailouts effectively add $5 Trillion to
the US national debt? What are your thoughts about the points raised
about investing overseas?

Fell
--
Reality is only a nasty illusion brought about by having insufficient
alcohol in your bloodstream

ppdls, 08/08/08

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[Schmedley]

Post by FellKnight
http://finance.sympatico.msn.ca/investing/jimjubak/article.aspx?cp-documentid=10271724
and was wondering if you would mind commenting on it.
Is it true that the Fannie/Freddie bailouts effectively add $5 Trillion to
the US national debt?

I do not think so. From my recollection, the $5T was the total amount
guaranteed by the two, backed by mortgages. Since only a fraction of these
will default, the total estimated exposure is a lot less. But we could all
play a nice tourament with that lower amount.

The $5T would come into play if the real estate market totally collapsed,
but it would be a Road Warrior scenario and the USA would be history.


What are your thoughts about the points raised

Post by FellKnight
about investing overseas?
Fell
--
Reality is only a nasty illusion brought about by having insufficient
alcohol in your bloodstream
ppdls, 08/08/08
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[johnny_t]

Post by FellKnight
http://finance.sympatico.msn.ca/investing/jimjubak/article.aspx?cp-documentid=10271724
and was wondering if you would mind commenting on it.
Is it true that the Fannie/Freddie bailouts effectively add $5 Trillion to
the US national debt? What are your thoughts about the points raised
about investing overseas?

No, all real estate would have to essentially go to zero for that to
happen.

Then the biggest problem would not be the real estate market, but that
for some reason we couldn't stop Venezuela from crossing our borders.


The reliable figures are in the 100 Billion dollar range.

[mo_charles]

http://finance.sympatico.msn.ca/investing/jimjubak/article.aspx?cp-documentid=10271724

Post by FellKnight
and was wondering if you would mind commenting on it.
Is it true that the Fannie/Freddie bailouts effectively add $5 Trillion to
the US national debt? What are your thoughts about the points raised
about investing overseas?

the market understood that the government implicitly backed the gse's
debt, so the soundbite sounds more shocking it is. most measures of debt
are a function of gdp, and i think we're quite a ways away from the
downgrade levels of canada and other sovereigns from the early nineties.
the author's kind of hang-wringing bunko for other reasons. to believe a
bailout necessarily helped foreign powers is silly. pimco owned piles of
that debt too - made $1.7 billion the day of the announcement - and
they're as american as apple pie.

the point i made in the past was not about overseas investing generally,
but rather an investment opportunity available to non-americans. american
assets were cheap and made cheaper by a weak dollar. guys like you should
definitely nibble here. guys like me should nibble elsewhere, but the
dollar's already strengthened significantly.

not sure if i've addressed your issue.

mo_charles

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[Paul Popinjay]

Post by mo_charles
but the
dollar's already strengthened significantly.

lol

[mo_charles]

Post by mo_charles
but the
dollar's already strengthened significantly.

lol

six month chart:
http://finance.google.com/finance?client=ob&q=AMEX:UUP
whabajalaughinabout?

mo_charles

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[Paul Popinjay]

Post by mo_charles

Post by mo_charles
but the
dollar's already strengthened significantly.

lol

http://finance.google.com/finance?client=ob&q=AMEX:UUP
whabajalaughinabout?

I'm laughing at the image in my mind of you walking to the grocery store on
the streets of Chicago, pushing a wheelbarrow full of dollars so you can buy
a loaf of bread. I hope you're not used to eating a lot of sandwiches, Mo.

[mo_charles]

Post by Paul Popinjay

Post by mo_charles
http://finance.google.com/finance?client=ob&q=AMEX:UUP
whabajalaughinabout?

I'm laughing at the image in my mind of you walking to the grocery store on
the streets of Chicago, pushing a wheelbarrow full of dollars so you can buy
a loaf of bread. I hope you're not used to eating a lot of sandwiches, Mo.

we get to that point, and you can bet this guy won't be living anywhere
near chicago.

mo_charles

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[Paul Popinjay]

Post by mo_charles
we get to that point, and you can bet this guy won't be living anywhere
near chicago.

I'll buy you a drink in Idaho someday, my brother!

-PP

[mo_charles]

Post by Paul Popinjay

Post by mo_charles
we get to that point, and you can bet this guy won't be living anywhere
near chicago.

I'll buy you a drink in Idaho someday, my brother!

not if i buy you one first....

mo_charles

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[John_Brian_K]

Post by mo_charles

Post by Paul Popinjay

Post by mo_charles
we get to that point, and you can bet this guy won't be living anywhere
near chicago.

I'll buy you a drink in Idaho someday, my brother!

not if i buy you one first....
mo_charles

AWWWWW. HOW cute!

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BOOM byae
John

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