Fannie and Freddie Worthless?
Are Fannie and Freddie worthless? That is the big question crossing the minds of those in the financial and political realms this morning. We said yesterday that bottom-fishing was a fool’s game akin to playing Russian roulette and this is why. They are both down about 40% this morning on news that the Bush Administration is is mulling a government takeover and put them in a conservatorship, which would essentially render the shares worthless and put the bill with the taxpayers. Unfortunately, the collapse of these two giants will have horrendous and widespread effects throughout the entire financial system. Please avoid these stocks like the plague.
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Agency mREITs Aching Over Fannie, Freddie Flu
(Mortgage REIT Journal, 7/10/08)
Fannie Mae and Freddie Mac analysis.
(Emerging Index, 7/14/08)
Crikey! Market taking a chunk out of Fannie …
(Interest Rate Roundup - Money an..., 7/7/08)
