Freddie Mac downfall continues
Shares of Freddie Mac tumbled another 23 percent today, as capital concerns continued to plague the financials.
During today’s session, shares of the nation’s second largest mortgage buyer traded as low as $9.88 per share. Just to put things in perspective, shares of Freddie Mac started the year around $34. Shares have lost over 70 percent of their value since then, with 40 percent of the losses coming in the past month.
The bearish sentiment spread across the market as the Dow, Nasdaq and S&P lost over two percent each.
Soon it will be time for several investment banks to report earnings and unless there is some good news on the way, the woes of the financials will likely continue to erode confidence in the sector.
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4 opinions for Freddie Mac downfall continues
Chris McBride
Jul 9, 2008 at 8:52 pm
With respect to the mortgage end of the financial markets…why doesn’t the fact that everyone KNOWS that that particular market WILL turn around cushion the fall at all? Although they are currently writing down billions the paper is still there and WILL turn around. Why doesn’t this help the situation at all?
Jacob Hess
Jul 9, 2008 at 10:21 pm
This seems right to me, that market is readjusting itself. I don’t have a lot of confidence in the housing market at all. To hear that it’s pricing is falling isn’t that big of a surprise, though, I thought they weren’t buying into any of the subprime loans.
Tyrone Edwards
Jul 12, 2008 at 10:46 am
On Thursday July 11 on Bloomberg.com Christopher Dodd the Chairman of the Senate Banking Committee announced that Fannie Mae and Freddie Mac were given several options to access capital, obtain liquidity, and gain access to the Federal Reserve’s Discount window. And according to a July 12 Los Angeles Times article the U.S. government released reports on Friday on consideration of taking over the two mortgage giants, leaving shareholder in panic mode running for the exit door. With speculations of more default risk on outstanding loans Fannie Mae ability to predict a positive future seems impossible.
NY Times Article: http://www.latimes.com/news/nationworld/washingtondc/la-fi-fannie12-2008jul12,0,411793.story
Bloomberg.com: http://www.bloomberg.com/apps/news?pid=20601087&sid=ae9uchhwIkfg&refer=home
Shannon Brown
Jul 12, 2008 at 11:01 pm
is it A GOOD TIME TO BUY STOCK OR NO. dO YOU THINK THE PRICE ARE GOIN TO GO BACK UP. tHATS WHAT I WANT TO KNOW.
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