Just in case it's not all rosy tomorrow, tizbear was nice enough to post his list.
easiest way for the layman to short is via etfs you long these just buy them like you would any other stock on the market but they are inversely correlated.
these are extremely volitile and some are leveraged so not for the risk adverse just as a warning
can pick out specific markets you want to bet against as well
qid was up 14% on the week double inverse the nazcrappy 100 :aktion033
<table id="TableID" class="PageDataTable"><caption>Short & UltraShort MarketCap</caption> <thead> <tr> <th id="FundName" width="26%">Fund</th> <th id="TIKR" width="10%">Ticker
<nobr> (View Chart)</nobr></th> <th id="NAV" width="11%">NAV</th> <th id="NAVChange" width="11%">NAV Change</th> <th id="MktPrc" width="12%">Market Price</th> <th id="MktPrcChange" width="12%">Market Price Change</th> <th id="IndexName" nowrap="nowrap" width="18%">Benchmark Index</th> </tr> </thead> <tbody> <tr class="odd"> <td id="FundName" class="name">Short QQQ</td> <td id="TIKR" class="ticker"> PSQ </td> <td id="NAV" class="price">$53.20</td> <td id="NAVChange" class="price">$1.52</td> <td id="MktPrc" class="price">$53.75</td> <td id="MktPrcChange" class="price">$2.09</td> <td id="IndexName" class="index-name">NASDAQ-100 Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">Short Dow30</td> <td id="TIKR" class="ticker"> DOG </td> <td id="NAV" class="price">$59.77</td> <td id="NAVChange" class="price">$0.16</td> <td id="MktPrc" class="price">$59.95</td> <td id="MktPrcChange" class="price">$0.49</td> <td id="IndexName" class="index-name">Dow Jones Industrial Average <sup>SM</sup> </td> </tr> <tr class="odd"> <td id="FundName" class="name">Short S&P500</td> <td id="TIKR" class="ticker"> SH </td> <td id="NAV" class="price">$60.87</td> <td id="NAVChange" class="price">$0.04</td> <td id="MktPrc" class="price">$60.81</td> <td id="MktPrcChange" class="price">$0.22</td> <td id="IndexName" class="index-name">S&P 500<sup>®</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">Short MidCap400</td> <td id="TIKR" class="ticker"> MYY </td> <td id="NAV" class="price">$59.19</td> <td id="NAVChange" class="price">-$0.21</td> <td id="MktPrc" class="price">$59.17</td> <td id="MktPrcChange" class="price">-$0.10</td> <td id="IndexName" class="index-name">S&P MidCap 400 Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">Short SmallCap600</td> <td id="TIKR" class="ticker"> SBB </td> <td id="NAV" class="price">$69.88</td> <td id="NAVChange" class="price">-$0.51</td> <td id="MktPrc" class="price">$70.21</td> <td id="MktPrcChange" class="price">-$0.19</td> <td id="IndexName" class="index-name">S&P SmallCap 600 Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">Short Russell2000</td> <td id="TIKR" class="ticker"> RWM </td> <td id="NAV" class="price">$71.12</td> <td id="NAVChange" class="price">-$0.45</td> <td id="MktPrc" class="price">$71.23</td> <td id="MktPrcChange" class="price">-$0.39</td> <td id="IndexName" class="index-name">Russell 2000<sup>®</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort QQQ</td> <td id="TIKR" class="ticker"> QID </td> <td id="NAV" class="price">$38.20</td> <td id="NAVChange" class="price">$2.12</td> <td id="MktPrc" class="price">$38.64</td> <td id="MktPrcChange" class="price">$2.64</td> <td id="IndexName" class="index-name">NASDAQ-100 Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Dow30</td> <td id="TIKR" class="ticker"> DXD </td> <td id="NAV" class="price">$51.03</td> <td id="NAVChange" class="price">$0.27</td> <td id="MktPrc" class="price">$51.00</td> <td id="MktPrcChange" class="price">$0.52</td> <td id="IndexName" class="index-name">Dow Jones Industrial Average <sup>SM</sup> </td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort S&P500</td> <td id="TIKR" class="ticker"> SDS </td> <td id="NAV" class="price">$54.31</td> <td id="NAVChange" class="price">$0.07</td> <td id="MktPrc" class="price">$54.45</td> <td id="MktPrcChange" class="price">$0.36</td> <td id="IndexName" class="index-name">S&P 500<sup>®</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort MidCap400</td> <td id="TIKR" class="ticker"> MZZ </td> <td id="NAV" class="price">$53.60</td> <td id="NAVChange" class="price">-$0.40</td> <td id="MktPrc" class="price">$53.54</td> <td id="MktPrcChange" class="price">-$0.06</td> <td id="IndexName" class="index-name">S&P MidCap 400 Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort SmallCap600</td> <td id="TIKR" class="ticker"> SDD </td> <td id="NAV" class="price">$68.00</td> <td id="NAVChange" class="price">-$1.01</td> <td id="MktPrc" class="price">$68.07</td> <td id="MktPrcChange" class="price">-$0.43</td> <td id="IndexName" class="index-name">S&P SmallCap 600 Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell2000</td> <td id="TIKR" class="ticker"> TWM </td> <td id="NAV" class="price">$69.23</td> <td id="NAVChange" class="price">-$0.88</td> <td id="MktPrc" class="price">$69.20</td> <td id="MktPrcChange" class="price">-$0.55</td> <td id="IndexName" class="index-name">Russell 2000<sup>®</sup> Index</td> </tr> <tr> <td class="bottom-border" colspan="7"></td> </tr> </tbody> </table> <!-- END Table --> <table border="0" cellpadding="4" width="100%"> <tbody><tr> <td>Return to top</td> </tr> </tbody></table> <table id="TableID" class="PageDataTable"> <caption>Closing Price Information as of 11/8/07UltraShort Style</caption> <thead> <tr> <th id="FundName" width="26%">Fund</th> <th id="TIKR" width="10%">Ticker
<nobr> (View Chart)</nobr></th> <th id="NAV" width="11%">NAV</th> <th id="NAVChange" width="11%">NAV Change</th> <th id="MktPrc" width="12%">Market Price</th> <th id="MktPrcChange" width="12%">Market Price Change</th> <th id="IndexName" nowrap="nowrap" width="18%">Benchmark Index</th> </tr> </thead> <tbody> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell1000 Value</td> <td id="TIKR" class="ticker"> SJF </td> <td id="NAV" class="price">$75.31</td> <td id="NAVChange" class="price">-$1.14</td> <td id="MktPrc" class="price">$75.25</td> <td id="MktPrcChange" class="price">-$1.36</td> <td id="IndexName" class="index-name">Russell 1000<sup>®</sup> Value Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell1000 Growth</td> <td id="TIKR" class="ticker"> SFK </td> <td id="NAV" class="price">$62.64</td> <td id="NAVChange" class="price">$0.92</td> <td id="MktPrc" class="price">$61.37</td> <td id="MktPrcChange" class="price">-$0.08</td> <td id="IndexName" class="index-name">Russell 1000<sup>®</sup> Growth Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell MidCap Value</td> <td id="TIKR" class="ticker"> SJL </td> <td id="NAV" class="price">$80.65</td> <td id="NAVChange" class="price">-$1.31</td> <td id="MktPrc" class="price">$80.88</td> <td id="MktPrcChange" class="price">-$0.74</td> <td id="IndexName" class="index-name">Russell Mid-Cap<sup>®</sup> Value Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell MidCap Growth</td> <td id="TIKR" class="ticker"> SDK </td> <td id="NAV" class="price">$64.11</td> <td id="NAVChange" class="price">$0.08</td> <td id="MktPrc" class="price">$64.20</td> <td id="MktPrcChange" class="price">$1.52</td> <td id="IndexName" class="index-name">Russell Mid-Cap<sup>®</sup> Growth Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell2000 Value</td> <td id="TIKR" class="ticker"> SJH </td> <td id="NAV" class="price">$87.32</td> <td id="NAVChange" class="price">-$2.64</td> <td id="MktPrc" class="price">$87.45</td> <td id="MktPrcChange" class="price">-$2.41</td> <td id="IndexName" class="index-name">Russell 2000<sup>®</sup> Value Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Russell2000 Growth</td> <td id="TIKR" class="ticker"> SKK </td> <td id="NAV" class="price">$65.90</td> <td id="NAVChange" class="price">$0.15</td> <td id="MktPrc" class="price">$65.95</td> <td id="MktPrcChange" class="price">$0.15</td> <td id="IndexName" class="index-name">Russell 2000<sup>®</sup> Growth Index</td> </tr> <tr> <td class="bottom-border" colspan="7"></td> </tr> </tbody> </table> <!-- END Table --> <table border="0" cellpadding="4" width="100%"> <tbody><tr> <td>Return to top</td> </tr> </tbody></table> <table id="TableID" class="PageDataTable"> <caption>Closing Price Information as of 11/8/07UltraShort Sector</caption> <thead> <tr> <th id="FundName" width="26%">Fund</th> <th id="TIKR" width="10%">Ticker
<nobr> (View Chart)</nobr></th> <th id="NAV" width="11%">NAV</th> <th id="NAVChange" width="11%">NAV Change</th> <th id="MktPrc" width="12%">Market Price</th> <th id="MktPrcChange" width="12%">Market Price Change</th> <th id="IndexName" nowrap="nowrap" width="18%">Benchmark Index</th> </tr> </thead> <tbody> <tr class="odd"> <td id="FundName" class="name">UltraShort Basic Materials</td> <td id="TIKR" class="ticker"> SMN </td> <td id="NAV" class="price">$43.15</td> <td id="NAVChange" class="price">-$0.94</td> <td id="MktPrc" class="price">$43.14</td> <td id="MktPrcChange" class="price">-$0.86</td> <td id="IndexName" class="index-name">Dow Jones U.S. Basic Materials <sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Consumer Goods</td> <td id="TIKR" class="ticker"> SZK </td> <td id="NAV" class="price">$64.60</td> <td id="NAVChange" class="price">-$1.24</td> <td id="MktPrc" class="price">$64.50</td> <td id="MktPrcChange" class="price">-$1.59</td> <td id="IndexName" class="index-name">Dow Jones U.S. Consumer Goods<sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Consumer Services</td> <td id="TIKR" class="ticker"> SCC </td> <td id="NAV" class="price">$82.25</td> <td id="NAVChange" class="price">$0.05</td> <td id="MktPrc" class="price">$82.77</td> <td id="MktPrcChange" class="price">$0.52</td> <td id="IndexName" class="index-name">Dow Jones U.S. Consumer Services <sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Financials</td> <td id="TIKR" class="ticker"> SKF </td> <td id="NAV" class="price">$98.51</td> <td id="NAVChange" class="price">-$1.12</td> <td id="MktPrc" class="price">$97.77</td> <td id="MktPrcChange" class="price">-$1.78</td> <td id="IndexName" class="index-name">Dow Jones U.S. Financials<sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Health Care</td> <td id="TIKR" class="ticker"> RXD </td> <td id="NAV" class="price">$67.64</td> <td id="NAVChange" class="price">-$0.74</td> <td id="MktPrc" class="price">$67.68</td> <td id="MktPrcChange" class="price">-$0.31</td> <td id="IndexName" class="index-name">Dow Jones U.S. Health Care<sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Industrials</td> <td id="TIKR" class="ticker"> SIJ </td> <td id="NAV" class="price">$55.10</td> <td id="NAVChange" class="price">-$0.24</td> <td id="MktPrc" class="price">$54.95</td> <td id="MktPrcChange" class="price">-$0.32</td> <td id="IndexName" class="index-name">Dow Jones U.S. Industrials</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Oil & Gas</td> <td id="TIKR" class="ticker"> DUG </td> <td id="NAV" class="price">$39.69</td> <td id="NAVChange" class="price">-$1.13</td> <td id="MktPrc" class="price">$39.48</td> <td id="MktPrcChange" class="price">-$1.44</td> <td id="IndexName" class="index-name"> Dow Jones U.S. Oil & Gas <sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Real Estate</td> <td id="TIKR" class="ticker"> SRS </td> <td id="NAV" class="price">$103.66</td> <td id="NAVChange" class="price">-$1.32</td> <td id="MktPrc" class="price">$103.51</td> <td id="MktPrcChange" class="price">-$1.49</td> <td id="IndexName" class="index-name">Dow Jones U.S. Real Estate Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Semiconductors</td> <td id="TIKR" class="ticker"> SSG </td> <td id="NAV" class="price">$56.43</td> <td id="NAVChange" class="price">$1.74</td> <td id="MktPrc" class="price">$56.47</td> <td id="MktPrcChange" class="price">$2.06</td> <td id="IndexName" class="index-name">Dow Jones U.S. Semiconductors Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Technology</td> <td id="TIKR" class="ticker"> REW </td> <td id="NAV" class="price">$53.41</td> <td id="NAVChange" class="price">$3.64</td> <td id="MktPrc" class="price">$53.50</td> <td id="MktPrcChange" class="price">$3.85</td> <td id="IndexName" class="index-name">Dow Jones U.S. Technology <sup>SM</sup> Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort Utilities</td> <td id="TIKR" class="ticker"> SDP </td> <td id="NAV" class="price">$51.43</td> <td id="NAVChange" class="price">-$1.73</td> <td id="MktPrc" class="price">$51.41</td> <td id="MktPrcChange" class="price">-$1.58</td> <td id="IndexName" class="index-name">Dow Jones U.S. Utilities <sup>SM</sup> Index</td> </tr> <tr> <td class="bottom-border" colspan="7"></td> </tr> </tbody> </table> <!-- END Table --> <table border="0" cellpadding="4" width="100%"> <tbody><tr> <td>Return to top</td> </tr> </tbody></table> <table id="TableID" class="PageDataTable"><caption>Closing Price Information as of 11/8/07Short & UltraShort International</caption> <thead> <tr> <th id="FundName" width="26%">Fund</th> <th id="TIKR" width="10%">Ticker
<nobr> (View Chart)</nobr></th> <th id="NAV" width="11%">NAV</th> <th id="NAVChange" width="11%">NAV Change</th> <th id="MktPrc" width="12%">Market Price</th> <th id="MktPrcChange" width="12%">Market Price Change</th> <th id="IndexName" nowrap="nowrap" width="18%">Benchmark Index</th> </tr> </thead> <tbody> <tr class="odd"> <td id="FundName" class="name">Short MSCI Emerging Markets</td> <td id="TIKR" class="ticker"> EUM </td> <td id="NAV" class="price">$72.39</td> <td id="NAVChange" class="price">-$0.66</td> <td id="MktPrc" class="price">$72.22</td> <td id="MktPrcChange" class="price">-$0.88</td> <td id="IndexName" class="index-name">MSCI Emerging Markets Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">Short MSCI EAFE</td> <td id="TIKR" class="ticker"> EFZ </td> <td id="NAV" class="price">$70.00</td> <td id="NAVChange" class="price">-$0.45</td> <td id="MktPrc" class="price">$69.95</td> <td id="MktPrcChange" class="price">-$0.48</td> <td id="IndexName" class="index-name">MSCI EAFE Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort MSCI EAFE</td> <td id="TIKR" class="ticker"> EFU </td> <td id="NAV" class="price">$69.73</td> <td id="NAVChange" class="price">-$0.92</td> <td id="MktPrc" class="price">$69.95</td> <td id="MktPrcChange" class="price">-$0.68</td> <td id="IndexName" class="index-name">MSCI EAFE Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort MSCI Emerging Markets</td> <td id="TIKR" class="ticker"> EEV </td> <td id="NAV" class="price">$74.57</td> <td id="NAVChange" class="price">-$1.39</td> <td id="MktPrc" class="price">$75.42</td> <td id="MktPrcChange" class="price">-$0.58</td> <td id="IndexName" class="index-name">MSCI Emerging Markets Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort MSCI Japan</td> <td id="TIKR" class="ticker"> EWV </td> <td id="NAV" class="price">$74.29</td> <td id="NAVChange" class="price">$1.60</td> <td id="MktPrc" class="price">$74.19</td> <td id="MktPrcChange" class="price">$0.84</td> <td id="IndexName" class="index-name">MSCI Japan Index</td> </tr> <tr class="odd"> <td id="FundName" class="name">UltraShort FTSE/Xinhua China 25</td> <td id="TIKR" class="ticker"> FXP </td> <td id="NAV" class="price">$78.42</td> <td id="NAVChange" class="price">$2.21</td> <td id="MktPrc" class="price">$79.50</td> <td id="MktPrcChange" class="price">$4.25</td> <td id="IndexName" class="index-name">FTSE/Xinhua China 25 Index</td> </tr> <tr> <td class="bottom-border" colspan="7"></td></tr></tbody></table>
i doubt it
fed feeds what the markets what it wants in this case minimum 25 bp cut
basically gonna be 25 or 50 bp cut, 50 bp they might go bonkers over for the hell of it
25 they might react negatively as they want more
plus the language is what's important they done or not?
the latest bomb
i'm sure it'll all be over soon a few rate cuts will do the trick
down 9% in AH
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http://biz.yahoo.com/ap/071210/washington_mutual.html
Mortgage Crisis Forces Big Cuts at WaMu
Monday December 10, 7:33 pm ET
By Jessica Mintz, AP Business Writer
Mortgage Problems Force WaMu to Close Offices, Fire Workers and Drop Subprime Loans
SEATTLE (AP) -- Washington Mutual Inc., the nation's largest savings and loan, said Monday problems in the mortgage and credit markets are forcing it to close offices, lay off more than 3,000 workers and set aside up to $1.6 billion for loan losses in its fourth quarter.
Additionally, WaMu slashed its quarterly dividend 73 percent and said it plans a $2.5 billion offering of convertible preferred stock. WaMu has not yet priced the offering, but increasing the total number of company shares will dilute their value for existing stockholders. In after-hours trading, WaMu shares fell $1.73, or nearly 9 percent, to $18.15 following the company's announcement.
i'm sure it'll all be over soon a few rate cuts will do the trick
down 9% in AH
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http://biz.yahoo.com/ap/071210/washington_mutual.html
Mortgage Crisis Forces Big Cuts at WaMu
Monday December 10, 7:33 pm ET
By Jessica Mintz, AP Business Writer
Mortgage Problems Force WaMu to Close Offices, Fire Workers and Drop Subprime Loans
SEATTLE (AP) -- Washington Mutual Inc., the nation's largest savings and loan, said Monday problems in the mortgage and credit markets are forcing it to close offices, lay off more than 3,000 workers and set aside up to $1.6 billion for loan losses in its fourth quarter.
Additionally, WaMu slashed its quarterly dividend 73 percent and said it plans a $2.5 billion offering of convertible preferred stock. WaMu has not yet priced the offering, but increasing the total number of company shares will dilute their value for existing stockholders. In after-hours trading, WaMu shares fell $1.73, or nearly 9 percent, to $18.15 following the company's announcement.
.25 bp Def already factored in and YES I think the markets dip a little as they WANT .50bp.....If they do cut .50 bp I see another 250-300 pt Gain.....Either way I think that another cut is coming next meeting and Another at the meeting after that...So I'm betting .25bp cut just to keep things looking like the ship is sailing striaght and then anothet cut at the next fed meeting
50 bp please....pretty pretty please!!!!???
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Freddie Sees $5.5B-$7.5B More Losses
Tuesday December 11, 12:30 pm ET
By Marcy Gordon, AP Business Writer
Freddie Mac Chief Says Business Will 'Get Tougher Before It Gets Better' As Defaults Rise
WASHINGTON (AP) -- The chief executive of Freddie Mac estimated Tuesday the mortgage finance company will lose an additional $5.5 billion to $7.5 billion over the next few years as the housing crisis worsens and home-loan defaults rise.
The government-sponsored company has already logged about $4.5 billion in projected losses during the first nine months of this year.
"I honestly think it's going to get tougher before it gets better," Richard Syron, the company's chairman and CEO, said in a discussion with financial analysts in New York.
Freddie's shares fell $2.09, or 6 percent, to $32.95 in morning trading.
While the mortgage crisis has brought a rising wave of foreclosure notices into public view, less evident have been "pictures of people standing with furniture on the lawn" after being forcibly evicted from their homes, Syron said. "As that begins to happen, and it will happen, I am afraid of the impact that this has."
:monsters-
Syron's remarks came a day after Freddie Mac and its larger government-sponsored rival Fannie Mae said they are changing their criteria for purchasing delinquent home loans they've guaranteed, in order to reduce the number they buy from investors.
On Tuesday, McLean, Va.-based Freddie Mac announced it was imposing a 0.25 percent fee on all new home loans it buys or guarantees with settlement dates starting March 9, matching an earlier move by Fannie Mae. Both companies have begun adding surcharges on loans to borrowers with credit scores below 680 and who are borrowing more than 70 percent of the home's value.
Fannie and Freddie, which together own or guarantee around two-fifths of U.S. home-mortgage debt, have cut their dividends and sold billions of dollars of special stock recently to buttress their finances after posting stunning third-quarter losses. They have been forced to set aside billions of extra dollars to account for bad home loans, eroding their profits at a time when home prices are falling and defaults are spiking on high-risk mortgages made to borrowers with weak credit histories.
Fannie's shares declined $1.85, or 5 percent, to $35.06.
The two companies traditionally have been a major source of funding for the home-loan market by buying up mortgages made by banks and other lenders and then bundling them as securities for sale to investors. They have been under pressure to step up their role to help stabilize the mortgage market during the worst housing slump in more than 20 years.
Freddie lost $2 billion in the third quarter, and Syron said Tuesday that results aren't expected to be any better in the October-December quarter. Fannie's third-quarter loss was $1.4 billion.
"We've reported really ugly numbers, let's face it," Syron said in the meeting with analysts.
Freddie late last month sold $6 billion of preferred stock in a special offering to raise capital and sliced its quarterly dividend in half, to 25 cents -- its first dividend cut since it became a public company in 1989.
--------------------------------------------------------------
Freddie Sees $5.5B-$7.5B More Losses
Tuesday December 11, 12:30 pm ET
By Marcy Gordon, AP Business Writer
Freddie Mac Chief Says Business Will 'Get Tougher Before It Gets Better' As Defaults Rise
WASHINGTON (AP) -- The chief executive of Freddie Mac estimated Tuesday the mortgage finance company will lose an additional $5.5 billion to $7.5 billion over the next few years as the housing crisis worsens and home-loan defaults rise.
The government-sponsored company has already logged about $4.5 billion in projected losses during the first nine months of this year.
"I honestly think it's going to get tougher before it gets better," Richard Syron, the company's chairman and CEO, said in a discussion with financial analysts in New York.
Freddie's shares fell $2.09, or 6 percent, to $32.95 in morning trading.
While the mortgage crisis has brought a rising wave of foreclosure notices into public view, less evident have been "pictures of people standing with furniture on the lawn" after being forcibly evicted from their homes, Syron said. "As that begins to happen, and it will happen, I am afraid of the impact that this has."
:monsters-
Syron's remarks came a day after Freddie Mac and its larger government-sponsored rival Fannie Mae said they are changing their criteria for purchasing delinquent home loans they've guaranteed, in order to reduce the number they buy from investors.
On Tuesday, McLean, Va.-based Freddie Mac announced it was imposing a 0.25 percent fee on all new home loans it buys or guarantees with settlement dates starting March 9, matching an earlier move by Fannie Mae. Both companies have begun adding surcharges on loans to borrowers with credit scores below 680 and who are borrowing more than 70 percent of the home's value.
Fannie and Freddie, which together own or guarantee around two-fifths of U.S. home-mortgage debt, have cut their dividends and sold billions of dollars of special stock recently to buttress their finances after posting stunning third-quarter losses. They have been forced to set aside billions of extra dollars to account for bad home loans, eroding their profits at a time when home prices are falling and defaults are spiking on high-risk mortgages made to borrowers with weak credit histories.
Fannie's shares declined $1.85, or 5 percent, to $35.06.
The two companies traditionally have been a major source of funding for the home-loan market by buying up mortgages made by banks and other lenders and then bundling them as securities for sale to investors. They have been under pressure to step up their role to help stabilize the mortgage market during the worst housing slump in more than 20 years.
Freddie lost $2 billion in the third quarter, and Syron said Tuesday that results aren't expected to be any better in the October-December quarter. Fannie's third-quarter loss was $1.4 billion.
"We've reported really ugly numbers, let's face it," Syron said in the meeting with analysts.
Freddie late last month sold $6 billion of preferred stock in a special offering to raise capital and sliced its quarterly dividend in half, to 25 cents -- its first dividend cut since it became a public company in 1989.
my lord i'm on the floor
now wells fargo that is taking it the ass over subprimey's opens its mouth saying could cut as much as 75 bp cut
:smoker2: this is just flat out comical this current market :lol:
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Wells Fargo Chairman Says Fed Will Cut Interest Rates (Update2)
By David Mildenberg and Erik Schatzker
Dec. 11 (Bloomberg) -- Wells Fargo & Co. Chairman Richard Kovacevich said he expects the Federal Reserve to cut its discount rate today by as much as three-quarters of a point and guide the economy through 2008 without a recession.
The central bank will lower its benchmark lending rate by a quarter of a percentage point and reduce the discount rate by half to three-quarters of a point to reassure markets that credit will be available, Kovacevich said during an interview in New York today. If the Fed takes both of those actions today, it may not need to cut rates again, he said.
``This may do the trick,'' he said. ``The more important of the changes in my opinion is to get more liquidity into the banking system.''
The Fed's Open Market Committee will announce its decision on interest rates at about 2:15 p.m. Washington time. While futures prices indicated that investors still see a one-third chance that the Fed won't cut borrowing costs, Kovacevich said the central bank will act and is prepared to tolerate higher inflation rather than risk a severe economic slowdown.
Wells Fargo, based in San Francisco, is the fifth-largest U.S. bank and the second-biggest U.S. home lender. The company's stock fell 66 cents to $31.98 in 12:21 p.m. New York Stock Exchange composite trading.
Kovacevich, 64, is the San Francisco Fed bank's appointee serving on the Federal Advisory Council, a panel that consults with the Fed board in Washington. His term expires at the end of the month.
Fed's Navigation
Fed Chairman Ben S. Bernanke is trying to steer through the housing recession that entered its third year and alleviate a jump in borrowing costs for companies and consumers. The FOMC will lower the benchmark rate by a quarter-point to 4.25 percent, according to 115 of 124 economists surveyed by Bloomberg News. Seven anticipate a half-point move and two see no change.
U.S. housing prices should bottom out at about the same time as the economy, most likely in the third quarter of 2008, Kovacevich said. The total U.S. economy remains strong enough to overcome weakness concentrated in financial firms, residential mortgage markets and perhaps the auto business, he said.
``There's no credit crunch, not when you see people investing billions of dollars into financial institutions,'' Kovacevich said. ``The crunch is that there are buyers who don't think values are low enough yet and sellers who don't want to sell at these levels.''
Loose Standards
Kovacevich blamed the housing industry's slump on loose credit standards by lenders who enabled too many cash-strapped borrowers to obtain loans.
``That 15 to 20 percent of the market should never have owned homes in the first place,'' he said.
After averaging two acquisitions annually over the past five years, Wells Fargo is likely to make more purchases in the next year, Kovacevich said. Deals valued at $10 billion or more are possible, he said, declining to discuss specific targets.
``All we want is more cracks at the bat,'' he said. ``Prospects are now wanting to take us out to lunch.''
Kovacevich, who retires next year, said his own success should be measured by how well his successor, John Stumpf, runs the bank. Kovacevich said he isn't interested in the chief executive officer's job at Citigroup Inc., where he worked in the 1970s and 1980s before joining Norwest Corp. in 1986.
Citigroup's board met this week to consider a replacement for Charles O. ``Chuck'' Prince. He stepped down after the New York-based bank, the biggest in the U.S., said the value of subprime mortgages had fallen by at least $8 billion in the fourth quarter, putting the company on course for its first loss since 1991.
``I have total loyalty to the stagecoach,'' Kovacevich said, referring to Wells Fargo's corporate symbol. ``I could never compete with Wells Fargo.''
now wells fargo that is taking it the ass over subprimey's opens its mouth saying could cut as much as 75 bp cut
:smoker2: this is just flat out comical this current market :lol:
-----------------------------------------------------------------------------
Wells Fargo Chairman Says Fed Will Cut Interest Rates (Update2)
By David Mildenberg and Erik Schatzker
Dec. 11 (Bloomberg) -- Wells Fargo & Co. Chairman Richard Kovacevich said he expects the Federal Reserve to cut its discount rate today by as much as three-quarters of a point and guide the economy through 2008 without a recession.
The central bank will lower its benchmark lending rate by a quarter of a percentage point and reduce the discount rate by half to three-quarters of a point to reassure markets that credit will be available, Kovacevich said during an interview in New York today. If the Fed takes both of those actions today, it may not need to cut rates again, he said.
``This may do the trick,'' he said. ``The more important of the changes in my opinion is to get more liquidity into the banking system.''
The Fed's Open Market Committee will announce its decision on interest rates at about 2:15 p.m. Washington time. While futures prices indicated that investors still see a one-third chance that the Fed won't cut borrowing costs, Kovacevich said the central bank will act and is prepared to tolerate higher inflation rather than risk a severe economic slowdown.
Wells Fargo, based in San Francisco, is the fifth-largest U.S. bank and the second-biggest U.S. home lender. The company's stock fell 66 cents to $31.98 in 12:21 p.m. New York Stock Exchange composite trading.
Kovacevich, 64, is the San Francisco Fed bank's appointee serving on the Federal Advisory Council, a panel that consults with the Fed board in Washington. His term expires at the end of the month.
Fed's Navigation
Fed Chairman Ben S. Bernanke is trying to steer through the housing recession that entered its third year and alleviate a jump in borrowing costs for companies and consumers. The FOMC will lower the benchmark rate by a quarter-point to 4.25 percent, according to 115 of 124 economists surveyed by Bloomberg News. Seven anticipate a half-point move and two see no change.
U.S. housing prices should bottom out at about the same time as the economy, most likely in the third quarter of 2008, Kovacevich said. The total U.S. economy remains strong enough to overcome weakness concentrated in financial firms, residential mortgage markets and perhaps the auto business, he said.
``There's no credit crunch, not when you see people investing billions of dollars into financial institutions,'' Kovacevich said. ``The crunch is that there are buyers who don't think values are low enough yet and sellers who don't want to sell at these levels.''
Loose Standards
Kovacevich blamed the housing industry's slump on loose credit standards by lenders who enabled too many cash-strapped borrowers to obtain loans.
``That 15 to 20 percent of the market should never have owned homes in the first place,'' he said.
After averaging two acquisitions annually over the past five years, Wells Fargo is likely to make more purchases in the next year, Kovacevich said. Deals valued at $10 billion or more are possible, he said, declining to discuss specific targets.
``All we want is more cracks at the bat,'' he said. ``Prospects are now wanting to take us out to lunch.''
Kovacevich, who retires next year, said his own success should be measured by how well his successor, John Stumpf, runs the bank. Kovacevich said he isn't interested in the chief executive officer's job at Citigroup Inc., where he worked in the 1970s and 1980s before joining Norwest Corp. in 1986.
Citigroup's board met this week to consider a replacement for Charles O. ``Chuck'' Prince. He stepped down after the New York-based bank, the biggest in the U.S., said the value of subprime mortgages had fallen by at least $8 billion in the fourth quarter, putting the company on course for its first loss since 1991.
``I have total loyalty to the stagecoach,'' Kovacevich said, referring to Wells Fargo's corporate symbol. ``I could never compete with Wells Fargo.''
Tizzy, you win again. You are a stock market God. You have said all along that stocks were going to get drilled and you are right again today. You have been validated again today with your genius. If I had invested in the stocks at the peak in 2000 then right now I would be losing money and that's funny. LoL, the stock market is the worst place to invest money. We are in a bear market and today is the proof that we are.
The market is getting killed as we speak. It dropped 200 points in the last 10 minutes. At this rate the DOW will be at 5k by the close. Bears rule.
yeah in the language saying basically don't worry more cuts coming if needed
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The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent.
Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today's action, combined with the policy actions taken earlier, should help promote moderate growth over time.
Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; and Kevin M. Warsh. Voting against was Eric S. Rosengren, who preferred to lower the target for the federal funds rate by 50 basis points at this meeting.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 4-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and St. Louis
---------------------------------------------------------------
The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent.
Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today's action, combined with the policy actions taken earlier, should help promote moderate growth over time.
Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.
Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; William Poole; and Kevin M. Warsh. Voting against was Eric S. Rosengren, who preferred to lower the target for the federal funds rate by 50 basis points at this meeting.
In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 4-3/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and St. Louis
