May 11, 2010
– Comments (3) |
RELATED TICKERS: FNMA
My thoughts on this curious phenomenon. I welcome all constructive, informed feedback.
I agree with everything you mentioned. I would add that a speculator may buy FNM's stock because there is a huge backstop. The government won't ever let them go down the tubes - it would be an embarrasing admission of ill-constructed policies.
Of course, the backstop doesn't mean the shares might never become worthless. They could play it like they played the GM deal - shareholders - screwed - bondholders - screwed.
That one, I happened to notice. ;)
Nice to know someone's paying attention ;-)