Fannie Mae and Freddie Mac Bleed More Red Ink: The GSE End Game?
by Mike Larson 08-22-08
This week, shares of the two Government Sponsored Enterprises, or GSEs, imploded again: Fannie Mae lost 39% between last Friday and yesterday's close. Freddie Mac tanked 46%. Freddie Mac fell to its lowest in almost 18 years ... Fannie Mae to its lowest in more than 19.
It's not just the common stock, either. Investors are dumping their preferred shares and they're selling off Fannie and Freddie bonds. The message from the markets is coming through loud and clear: These companies are in big, big trouble.
So today, I want to focus on why this is happening, and what it means for your investments and your finances. But first, I need to provide some background on just who the heck Fannie and Freddie are ..."
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