Freddie Mac is probably the reason that most exemplifies why someone like me should go nowhere near the stock market. Yesterday the quasi-government mortgage liquidity factory announced that they are cutting their dividend in half while at the same time issuing preferred stock because they are burning through their reserves because of all the defaults occurring on the loans they own. ARTICLE
This makes sense because our lending, appraisal and real estate industry, with the backing of crazy-talk-Greenspan, set out to rip the face off of anyone with a pulse by pushing grossly inflated homes on people who couldn't possibly afford them. Really the definition of afford changed from "able to meet the expense of" to "able to provide fees to all vampires involved."
So what drives me to drink, beat my kid and seek out prostitutes is what happened today in response to this news. The stock jumped 14.34%. QUOTE
I think I get it really. All those who own the stock really want the dividend they were promised so maybe they decided to double down, right? Seriously, what in the world is considered bad news anymore? I think had the Enron implosion happened today, they wouldn't have gone under. They probably would have out priced Google.
And don't even get me started on the "fantastic" news about Citi and their cash infusion at 11%!?! What a great DEAL!!!
Subscribe to:
Post Comments (Atom)
-
UPDATE: Edited to remove the guy's name. I hope nobody harasses him or his employer. He was good-natured and his sign was innocuous a... -
Body Count goes to Vegas! Ernest Scherer III was a Vegas loser who fancied himself a professional poker player. Doesn't that photo tell ...
No comments:
Post a Comment