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Trump Eyes IPO Path for Fannie & Freddie
Plus: Tariff fireworks fizzle as markets stay calm, proving once again that free-market skepticism beats government grandstanding.
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Trump Eyes IPO Path for Fannie & Freddie Trump's tariff fireworks fizzle as markets stay calm, proving once again that free-market skepticism beats government grandstanding. August 01, 2025 |
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Markets stand firm as tariff threats rain down—investors aren't buying the hype. |
Wall Street just got the call: help take Fannie and Freddie public again. Yes, really. – Truly yours, Fred Frost |
📈 Yesterday's Market RecapMarkets ended the day with modest gains, shrugging off Trump's tariff announcements as more bark than bite. The S&P 500 edged up 0.2%, driven by tech resilience despite broader uncertainties. Investors seem conditioned to discount political noise, focusing instead on solid earnings from Big Tech.
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📉 Daily Performance Snapshot
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🔭 What to Watch TodayWith tariffs kicking in soon, keep an eye on economic indicators and earnings that could signal real impacts versus rhetoric—remember, government interventions often distort more than they deliver. |
💡 Opportunity WatchTariff turbulence creates pockets of value for the discerning investor—focus on sectors dodging the noise or benefiting from policy shifts, always prioritizing free-market fundamentals over government favors.
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Sponsored Content📊 3 Tickers Just Triggered Buy SignalsINM ran. LLAP surged. By clicking the link above you agree to receive periodic updates from our sponsor. |
🔥 The Big BulletTrump Eyes Wall Street for Fannie & Freddie’s Next ActWhat happened: Donald Trump is floating a plan to privatize mortgage giants Fannie Mae and Freddie Mac. According to Bloomberg, he’s asked top bank CEOs—including those from JPMorgan, Goldman Sachs, and BofA—to pitch how they’d take the entities public. The goal? Structure a public stock offering that pulls them out of conservatorship after nearly two decades in federal hands. The firms, still central to the U.S. housing finance machine, have long been cash cows—but ones the government never quite let go of. → Reuters Why it matters: Fannie and Freddie underpin $7 trillion in mortgage securities—this isn’t a side show. Moving them from public utility to profit-hungry enterprise may juice underwriting and lift capital markets, but also opens the door to moral hazard déjà vu. The banks would love the deal fees. Taxpayers may not love the tail risk. If this becomes reality, the U.S. mortgage market would shift from government-regulated gear to Wall Street’s private engine—tuned for profit, not public policy. What’s next: Keep eyes on who gets the advisory mandates—this is a power play wrapped in paperwork. Watch upcoming comments from the FHFA and Treasury; their guardrails (or lack thereof) will shape investor appetite. Also, listen closely on big bank earnings calls for any allusions to “housing finance opportunity.” If this floats, it’s a long runway—but the wheels are starting to turn. Credit risk pricing, secondary MBS markets, and housing affordability narratives will all feel the tremor. |
🧭 Policy & Market Ripples
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📉 What do you think?How have your household finances been since Trump took office? |
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