Stock Picks:Taxpayer Bailout
September 7th 2008 20:13
When major companies fail, it is the taxpayers who sometimes have to bail them out. With our mortgage crisis in full swing, is it any wonder that the government plans to take control of Fannie Mae and Freddie Mac? The mortgage giants will receive taxpayer money to lower rates, spur homebuying demand and slow the plunge in home prices that has ravaged many areas of the country.
It doesn't say how they got into this little pickle that tax dollars will hopefully make things right. At one time mortgages were given to almost anyone regardless of credit. Many homes were money pits in need of repairs. They practically were sending the homeowner into foreclosure or bankruptcy.
On a better note, I'll bet their stocks start to rise. That is what I'll be paying attention to. Currently Mac is at 5.10 and Mae is at 7.04. I would say to buy now while they are at a pretty low price. Most of the time when the gov intervenes to save a company those stocks rise.
It is unfortunate when taxpayers have to bailout multi-billion dollar companies, but careful research might prove profitable. I might be totally wrong, so I'm going to play a little game. I'm buying 100 shares of each. Lets see where it goes.
A few months ago I wanted to buy U S Airways(LCC) stock at about 1.60-ish. Look at it now.
Stocks are always a gamble and some stocks are not for the faint at heart. If you look at LCC's track record, it was as high as 33.45 in a 52 week high. At around the Holidays it was over 20, and then began to freefall. In May when a possible merger with United was cited the stock rose 2 points before freefalling to the 52 week low.
So the mortgage giant stocks are in my prediction going to rise. But be cautious and ready to sell for a profit during a possible freefall.
Fannie Mae tracker
Ereddie Mac tracker
Suggestion: Follow the 52 week high/low
Read the articles
Always sell at a profit
It doesn't say how they got into this little pickle that tax dollars will hopefully make things right. At one time mortgages were given to almost anyone regardless of credit. Many homes were money pits in need of repairs. They practically were sending the homeowner into foreclosure or bankruptcy.
On a better note, I'll bet their stocks start to rise. That is what I'll be paying attention to. Currently Mac is at 5.10 and Mae is at 7.04. I would say to buy now while they are at a pretty low price. Most of the time when the gov intervenes to save a company those stocks rise.
It is unfortunate when taxpayers have to bailout multi-billion dollar companies, but careful research might prove profitable. I might be totally wrong, so I'm going to play a little game. I'm buying 100 shares of each. Lets see where it goes.
A few months ago I wanted to buy U S Airways(LCC) stock at about 1.60-ish. Look at it now.
Stocks are always a gamble and some stocks are not for the faint at heart. If you look at LCC's track record, it was as high as 33.45 in a 52 week high. At around the Holidays it was over 20, and then began to freefall. In May when a possible merger with United was cited the stock rose 2 points before freefalling to the 52 week low.
So the mortgage giant stocks are in my prediction going to rise. But be cautious and ready to sell for a profit during a possible freefall.
Fannie Mae tracker
Ereddie Mac tracker
Suggestion: Follow the 52 week high/low
Read the articles
Always sell at a profit
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