What’s behind the steep climb for Fannie and Freddie?
I have been watching Fannie Mae and Freddie Mac for quite sometime. Last night, I saw a clip of Jim Cramer talking about the recent rise in these two stocks and he was pretty skeptical. Understandably so.The short sale ban has aided them tremendously, but both stocks have seen a meteoric rise in the past week. Last Thursday, Fannie Mae was trading at $0.49 and Freddie Mac was trading at $0.33 per share. Today, both stocks are well over $2 per share and Freddie Mac appears to be approaching $3. We know that both companies were in way over their heads (in terms of risk), but I think the markets punished them too harshly, too quickly. The punishment should fit the crime and we still don’t know how severe the crime is. I guess that’s why the FBI is on the case now!
Tags: fannie mae, FBI, freddie mac, jim cramerRelated Stories
POSTED IN: Corporate, Economy, Federal Reserve, Market, News
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