Bookmark and Share

Freddie Mac shares plunge to $10

by Morgan on July 9, 2008

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Freddie Mac shares tanked 23% on fears that the GSE will need to raise more capital.  The GSEs have been on a roller coaster on the stock market over the last few days as concerns about capital requirements have investors panicked about the future of the two massive mortgage buyers.

Is it just me or is it super-spooky watching two massive government entities that hold trillions in mortgage debt go through the same gyrations as Countrywide, IndyMac and New Century did in their final days?  I’m just saying….

From Market Watch:

Shares of Freddie Mac dove 23% in late afternoon trading on Wednesday, to $10.32, as the stock’s value gyrated for the third consecutive day. Concerns about the company’s possible need to raise capital has punished its shares and shares of its sister company Fannie Mae.

Last 3 posts by Morgan

Related posts:

  1. Freddie Mac may raise $10 billion
  2. Fannie and Freddie on Verge of Bailout
  3. Freddie joins Fannie
  4. Fannie and Freddie in the Jumbo market?
  5. Freddie and Fannie ‘Technically Insolvent’

  • Morgan,

    It's not just you. There are LOTs of us who's livelihoods depend on Fannie and Freddie staying operational.

    Tom
  • Straddle option, baby
  • Ann
    I look at the Fannie and Freddie as the same as sellers who refused to accept the truth and follow the market down as they continue to lower and lower their price HOPING the bottom is hear...The goverment could have put a permanent fix on this problem and instead chose to handle it like a finger stuck in the face of a dam breaking. 2 years ago, when the dam started to crack the goverment should have ORDERED lending institutions to fix the problem. NOT ASKED BUT ORDERED. Convert all your borrower to a fixed rate that was affordable and deal with it. Although this would have been a issue for investors receiving less profits it would have saved TRILLIONS and given over time, like assumable non qualifying loans, would have worked through the system and disappeared(Think of rent controled housing in NY..how many are really left compared to where they started. Not much.)

    Again our goverment..a day late and a dollar short and yet they still don't get it..
  • Don
    Ann, it's because the US has been more of a reactive country than proactive.
blog comments powered by Disqus

Previous post: A Brief History of IndyMac Stock

Next post: Freddie and Fannie ‘Technically Insolvent’