Freddie and Fannie

Discussion in 'Stocks' started by 2ez, Nov 26, 2008.

  1. 2ez


    Is Freddie and Fannie looking better now with the yesterday’s news regarding the $600bil buying of the bad mortgages. Freddie closed at .45cents on Monday…….up to .71+ cents now. I know still down big from the original levels…….but is this worth looking at or at least keeping an eye on ?

    and there was a delisting letter sent last week. Was confused by this because the stock price was over $1 earlier in the month and i thought delisting was not an issue until 30days under $1

    Please share your thoughts.
  2. 2ez


    Barack's new guy says Freddie and Fannie need to get bigger. Was at .40+ cents on Monday, closed at $1.18 Friday, with 48mil shares traded on an abbrev trading day:

    After hours trading at $1.30+ 1mil shares traded

    THE FINANCIAL CRISIS Back in December 2007, when officials at the Federal Reserve and in the Bush administration were saying a recession was unlikely, Mr. Summers gave a speech with a different forecast. He said that it was “distinctly possible we’re headed into a period of the worst economic performance since the stagflation of the late 1970s and recessions of the early 1980s.” More recently, he predicted that the financial markets wouldn’t return to normal for a long time.

    Expect him to urge Mr. Obama to be aggressive and creative in trying to jump-start lending — and to avoid the rosy predictions that have made the Bush administration appear to be out of touch. Mr. Summers likes to say that there is no silver bullet. He is instead likely to argue for trying many different things and erring on the side of overreaction.

    (One example: Unlike many Democrats, he is a longtime critic of Fannie Mae and Freddie Mac. Yet he still says they need to get even bigger during the crisis, to keep mortgage lending flowing.)

    The lesson of the Depression and of Japan’s “lost decade,” Mr. Summers says, is that governments facing a credit squeeze are usually too meek. If you wait to take radical action, like the new $800 billion program to promote lending, until it seems unavoidable, you have usually waited too long.
  3. 2ez