This company is saying 2/3 of their portfolio is sub-prime crap. They're leveraged beyond belief. I have no idea what the stock reaction is going to be but my reaction is you've got to be insane to think interest rate cuts are going to fix the real estate market any time soon. (I am not a financial stock analyst and these are just layman's opinions. Beware.)
Yesterday, the OHFEO said they're taking portfolio cap limits off for the GSEs. Why it's a good idea to let these companies get even more leveraged is completely beyond me.
It's still very scary out there.
Thursday, February 28, 2008
Freddie Mac (FRE) sounds insolvent
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