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Dessauer's HotLine today;

"The FDIC now runs IndyMac bank and will pay depositors and try to recover any losses through the sale of the bank’s assets.

The FDIC did not take over the holding company. There may be value in IndyMac’s holding company. Financial Freedom, the reverse mortgage business, has value and there is value in the mortgage servicing business. Whether or not any of this value can be salvaged for common shareholders is an open question. The stock is trading on the pink sheets with the symbol IDMC.PK. I will keep following this tragic story of a great company that survived everything until a Senator terrified its depositors. Indymac remains a Hold.

From overseas, I watched as the stock prices for Freddie Mac and Fannie Mae plunged, too. They collapsed not because of a rising tide of foreclosures but because of fear that both might need to raise more capital. It is downright scary to see these giants of the housing industry be crushed in the stock market. It was fear that shut down the secondary mortgage market last August. It is fear that continues to cause turmoil in stock and mortgage markets. High officials in my opinion have a duty to provide leadership and calm the fear when whole markets are in turmoil. To inflame the public’s fear is totally irresponsible. The IndyMac FDIC takeover and the collapse of Freddie and Fannie’s stock prices will likely prolong the housing slump and delay a recovery for several more months. The good news is that the survivors will have less competition and be much stronger.

For example, Bank of America (NYSE: BAC, $21.46) will dominate the mortgage and mortgage servicing business. Keep in mind that Bank of America has $800 billion in deposits and 25% of them are non-interest bearing. This makes Bank of America a cash machine. BAC is a Buy."

So, it's the holding company that is now trading at less than 10 cents a share. It closed at $0.0715 today. Want a 10 or 12 bagger?? Has to go to ONLY 80 cents, or so, for that! Have the guts to buy???
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