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Stock View: Fannie And Freddie Have Little Value - But

August 6, 2008 9:00 PM

I warned many moons ago that if FNM was not a quasi government sponsored company that “any price above zero is too much”. It has been a horrifically managed company, to say the least, and their coming losses would easily put any “normal” company under, most probably. This nonsense that taxpayers are only exposed to $25 billion is total and complete nonsense. I would be shocked if the losses do not hit $400-$500 billion, not $25 billion. I mean it is just complete nonsense to even possibly think the losses will be contained to $25 billion. I do not even think it is possible in “best case fantasy land scenario”.

The thing that is the unknown here, and the only reason these stocks are not near zero, is what impact will a government bailout have on the equity? I believe nobody clearly knows, as of yet. If the government takes ownership in the company in direct relation to the bailout required, I am guessing the stocks have little value. If their losses do not FAR exceed $25 billion I will promise this right here - I will never post on any stock ever again, lol. It is complete nonsense.

Hmmm, but if I am not mistaken, I did say FNM was near worthless FAR before anyone else, even so called analysts. Oh and Cramer was blowing his bull horn on this stock a year ago. Nice call. When do I get my own show making $5 million? Then again, my listeners would perhaps not donate their money to Wall St., which would defeat the purpose….ha.

Written by Tom@StockBlade.com · Filed Under Stock Comments 

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