Candlestick Patterns Predict Rise in Fannie Mae Shares
After a long decline which accelerated during the last several days, Fannie Mae share prices may have found a bottom. They appear to have bounced upward in a bullish move. Candlestick patterns are calling for a reversal. Fannie Mae is in serious need of new capital in order to shore up its financial base, but who will buy new shares? Many of the financial institfutions which own large blocks of Fannie Mae shares are themselves in difficulty and have had to resort to offshore funding in order to continue to function. So, who would buy new Fannie Mae shares - or, probably more specifically, who might be precluded from buying them? We know that some of the "sovereign wealth funds" of the Muslim countries are ready and willing to buy up American assets. Is it possible that they would want to, or be allowed to, buy enough shares of Fannie Mae to control it? My thinking is that such a result would never be allowed to happen; rasther, that the Federal Reserve would simply print up enough dollar bills to take over Fannie Mae, which of course would be effective nationalization of a private company - not an outcome to be greatly desired.