A Farewell Poem to the GSEs


As Freddie announces a $5 Billion loss, I recall a post I wrote a bit over a year ago. It was entitled “Farewell Poem to the GSEs”. So I’ve decided to do a repost. Enjoy!

A Farewell Poem to the GSEs
by Levik Dubov – September 2008

Freddie and Fannie we will nationalize,
As investors soon will come to realize,
That money doesn’t grow on trees,
And wealth just doesn’t come with ease.

Of 5 Tril in loans galore!
But if their gone who will secure?
The U.S. debt rating, would you say,
Is it really worth that triple-A?

Do you think they will be last to fail,
Or is the system far more frail,
Maybe GM and Visa too,
When all this consumer crunch is through.

I look at charts and see gold soar,
Have investors finally said “No More!”
Or will we continue our delusion,
Of insecurity and confusion.

For every boom there is a bust,
But keep your head and worth you must,
For all exuberance will correct,
It’s simple law of cause, effect.

So grab some assets, sit it out,
While all that cash is thrown about,
And when the media has cut its jargon,
Then buy back in, at some great bargain.

A day when great stocks sell for book,
With p/e ratios worth a look!
And lines for gold have stretched too far,
With stocks and bonds so under par.

I’ll load my cart with Bio-tech,
Japan and Solar, what the heck!
Homebuilders, banks and Bonds so cheap,
I’ll make a fortune while I sleep!

When it comes I will be ready,
With my income nice and steady,
‘Cuz’ double-digit ROIs are great,
But only if you have time to wait!

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