Buying shares of Fannie & Freddie while they're so low... ?

Question

I am thinking of buying some shares of Fannie Mae & Freddie Mac while they have dropped extremely low.

Isn't inevitable that the gov't will bail them out and share value will increase?

Please recommend a good website where I can buy stock shares.

Answer 1

Wait and See First!

There is still many more bad news from the financial sector. Both banks are expected to post sizeable losses for the second quarter, and reveal plans to sell off billions of pounds worth of assets.

No one knows when is Fannie and Freddie back to a stable footing, is very risky now.

For sure the goverment will back up them but till when? Don't forget now is just the begining...wait and see, you will have the chance!

Answer 2

after the government takes them over you won't have any shares

Answer 3

I agree.

The US Gov cannot allow FNM and FRE to fail.  The consequences would tear the US and global banking industry and make the Great Depression look like a e-Ticket ride at Disneyland.

Brokers:

etrade, scott trade, Schwab, Fidelity on the discount side.

Full Service - Morgan Stanley, Merrill Lynch

Answer 4

If they lose enough money and the government takes them over the stock can go to zero, like any bankruptcy.